Post-earnings stock declines; Moderna storms

Shares of the social media giant fell as investors balked at its accelerated spending on artificial intelligence, while reports of a potential partnership or buyout talks helped the vaccine maker’s shares rise.

Major US stock indices fell as investors weighed a meeting between the US and Chinese presidents, the dovish tone from the Federal Reserve Chairman after yesterday’s interest rate cut, and the latest quarterly earnings reports. The Standard & Poor’s 500 index fell 1%. The Dow Jones fell 0.2%, while the weak performance of the technology sector sent the Nasdaq down 1.6%. See here for more reports from Investopedia on the big market stories of the day.

Meta Platforms (META), the parent company of Facebook, Instagram and WhatsApp, reported third-quarter earnings per share falling significantly below analysts’ expectations, reflecting the impact of a one-time $16 billion tax charge related to the One Big Beautiful bill. The social media giant also raised its minimum forecast for capital spending for 2025, and said expenses will grow “much faster” next year, raising concerns about its heavy spending on artificial intelligence. Meta shares fell by 11.3%.

Chipotle Mexican Grill (CMG) fell 18.2%, the most of the S&P 500 component, after the fast-casual burrito chain reported lower-than-expected third-quarter revenue and lowered its full-year forecast for comparable restaurant sales. The company cited declines among customers ages 25 to 34 who make less than $100,000, a key group that Chipotle says is turning to at-home dining options amid a challenging macroeconomic environment.

Shares of EMCOR Group (EME) fell 16.6% after the specialist mechanical and electrical construction company reported third-quarter results. Although sales and profits came in ahead of expectations, operating margins were down from a year ago, and EMCOR’s tight full-year guidance failed to impress investors.

Although eBay ( EBAY ) beat third-quarter revenue and revised earnings estimates, its guidance for the critical holiday quarter fell short of expectations, and its shares fell 15.9%. The e-commerce company noted slower growth in the volume of goods imported into the US from major markets after the de minimis exemption was removed.

Shares of logistics company CH Robinson Worldwide (CHRW) rose 19.7%, top-performing the S&P 500 on Thursday. The freight forwarder has integrated AI to automate various processes, from providing quotes for shipping services to tracking shipments. AI-driven efficiency contributed to a significant year-over-year reduction in operating expenses, while CH Robinson’s headcount decreased by more than 10% from last year.

Cardinal Health (CAH), a medical and pharmaceutical distributor, beat sales, revised earnings estimates for the fiscal first quarter of 2026 and raised its full-year outlook. The company benefited from strong demand for high-margin specialty and branded drugs. Its shares rose by 15.4%.

Moderna (MRNA) shares rose 13.9% following reports that the vaccine maker has been in talks with a large pharmaceutical company about a potential major partnership or offtake agreement. The biotechnology company has faced pressure as sales of Covid-19 vaccines decline. No details have emerged about the nature or scope of the potential deal.