Tech stocks experienced notable movements in the market as companies like Okta and MongoDB reported impressive quarterly results, ahead of Nvidia’s eagerly anticipated earnings announcement. Investors are looking at these moves with eager anticipation, causing meteoric rises and falls in market capitalization during the trading session.
On Thursday, Okta beat analysts’ expectations, reporting adjusted earnings per share of 91 cents, ahead of an expectation of 84 cents. The identity software maker delivered revenue of $591 million, topping the consensus of $556 million. Typically, following positive quarterly results paired with an improved full-year earnings forecast, shares of Okta would have soared by as much as 6%. Co-founder and CEO Todd McKinnon said that these results were “superior to what we expected.”
MongoDB’s shares soared more than 28% after the company exceeded Wall Street’s expectations. The tech firm’s quarterly revenue was $728 million, beating the expected $712 million. That bullishness continued into after-hours trading as the beat sent MongoDB’s stock soaring nearly 30%.
PVH Corporation saw one of the largest increases as its stock rose close to 6%. That was on top of a wildly positive market backdrop.
As investors look to Nvidia’s release of quarterly earnings later this week hopes couldn’t be higher. Based on consensus estimates, analysts expect the company to report sales and earnings that beat the consensus. Further, Nvidia is no stranger to a beat, having dusted earnings expectations in 11 of the last 12 earnings releases. Given Nvidia’s string of successes, the market has punished Nvidia post-earnings announcement on four previous occasions. This data is reported by FactSet.
In a recent research note, Tom Lee, head of research and chief investment officer of Fundstrat Capital, conceded that investor fears about Nvidia’s performance are understandable. He stated, “I know investors are really anxious and Nvidia has not performed well the last few times it’s reported, but the story arc there remains that it’s one of the most important companies in the world in the middle of the biggest structural change in the world economy. Honestly, it wouldn’t make a huge difference to our thesis if the stock moved badly in response.”