U.S. tech and travel stocks slide as earnings, guidance shake up midday trading

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US tech, travel stocks slide

Highlights

Nasdaq Composite enters correction as A.I. and semiconductor-linked stocks tumble, with BAI ETF down 10%, SOXX off over 9%, and major chip names like AMD and Nvidia falling up to 15%.
Travel and consumer stocks slump after guidance and leadership changes, with Tripadvisor plunging 22%, Expedia down more than 13%, and Snap falling 15% on disappointing results.
Earnings surprises spark volatility: AppLovin surges 26% and EPAM Systems jumps 22% after strong beats, while Wolfspeed drops 14% and Fastly plummets 25% despite exceeding estimates.

Tech rout and company updates drive intraday moves

As reported by CNBC, companies linked to artificial intelligence infrastructure and semiconductors are among the session's biggest decliners as the Nasdaq Composite moves into correction territory. The iShares A.I. Innovation and Tech Active ETF, BAI, sheds 10%, while Lumentum falls 14%, Comfort Systems loses 10%, CoreWeave tumbles 12%, Corning drops 13% and nVent Electric slides more than 12%.

Chip stocks are also under pressure as traders back away from the sector. The iShares Semiconductor ETF, SOXX, is down more than 9%, with Astera Labs off 15%, AMD down 14%, Nvidia and Broadcom each losing almost 7%, and Micron falling nearly 13%.

Several individual names are moving on earnings and outlooks. Qualcomm plunges 11% after issuing current-quarter adjusted earnings guidance of $2.15 to $2.35 per share, compared with a FactSet estimate of $2.26 per share, while Arm Holdings drops 12% despite adjusted earnings of 52 cents per share topping the LSEG consensus of 47 cents. Wolfspeed falls 14% after a wider-than-expected fiscal first-quarter loss, and AppLovin rallies 26% after third-quarter adjusted EBITDA of $1.84 billion and revenue of $2.18 billion beat FactSet expectations.

Software names are mixed but volatile. EPAM Systems jumps 22% after raising full-year earnings guidance and approving a $1.5 billion increase to its buyback authorization, Unity Software rises 11% after quarterly results beat LSEG estimates, while Figma drops 15% despite topping consensus forecasts. Fastly tumbles 25% even after third-quarter earnings, revenue and current-quarter guidance exceed estimates, alongside news that Scott Lovett, president of Go To Market, will retire in 2027.

Guidance cuts, leadership changes hit travel and consumer shares

Travel-related stocks are among the steepest losers after weaker outlooks and management changes unsettle investors. Tripadvisor plunges 22% after saying CEO Matt Goldberg will leave by Feb. 16 and finance chief Michael Noonan will remain through Dec. 31, while the company also forecasts a fourth-quarter sequential revenue decline in the low teens.

Expedia slides more than 13% after projecting fourth-quarter revenue of $3.69 billion to $3.75 billion, a range that is mostly below market expectations. Snap also drops 15% after third-quarter revenue of $1.72 billion narrowly misses consensus and daily active users of 495 million trail StreetAccount estimates.

Tesla and SpaceX extend losses for a second day as traders dump technology shares and grow more skeptical about the artificial intelligence trade. Tesla falls 11% and SpaceX drops 9%, with the move also tied to worries that Democrats' midterm victories in Texas could slow the pace of AI infrastructure build-out in the state.

Elsewhere, results-based moves remain mixed across industrial, payments and consumer stocks. Motorola Solutions gains 5% after raising full-year guidance, Corpay climbs 8% after third-quarter earnings and revenue top FactSet estimates and the company lifts its adjusted EBITDA outlook, and Tapestry rises 6% after increasing its fiscal 2027 forecast. Cava loses 9% after missing LSEG expectations, while Dutch Bros tumbles 22% after cutting full-year adjusted EBITDA guidance and posting same-store sales below StreetAccount estimates.

Our earlier coverage of the Nasdaq-100 highlighted a sharp intraday selloff that left the index under short- and medium-term moving averages, keeping near-term downside risks elevated. The piece also noted the launch of JQQQ, a blockchain-native fund from Janus Henderson and Centrifuge designed to broaden digital access to Nasdaq-100 exposure, even as momentum signals remained mixed and traders watched key resistance and support levels.

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