Investing.com -- As the second week of December ended, several stocks experienced significant volatility, mostly as a reaction to their earnings results. Out of many, here are Investing.com’s stocks of the week:
Adobe
Adobe (NASDAQ:ADBE) experienced a sharp decline after reporting disappointing guidance on Thursday, leading several analysts, including those from RBC Capital, Mizuho (NYSE:MFG), Piper Sandler, and Oppenheimer, to lower their price targets to a range of $590–$620.
RBC Capital cut its price target to $590 from $610, citing reduced estimates but maintained an Outperform rating. The firm noted that Adobe’s quarterly results were solid, with record DM net-new ARR, although the upside was smaller compared to recent quarters.
"ADBE has been a frustrating stock for much of FY24. Having said that, we remain confident ADBE will significantly monetize its Generative AI innovations going forward, and we expect healthy upside to the FY25 ARR/revenue guidance as the year unfolds.," an analyst at Mizuho said.
On Friday, Adobe’s stock continued to decline, trading about 2% lower at $465.
Broadcom
Broadcom Inc (NASDAQ:AVGO) stock saw positive reaction after its earnings, buoyed by upbeat guidance and surging AI revenues. The company hit a trillion-dollar valuation on Friday and shares climbed over 24%.
Cantor Fitzgerald reaffirmed its Overweight rating and a $250 price target for the stock.
“We see the strength in AI continuing at a rapid pace for AVGO, and the company has laid out a SAM of $60B–$90B with its three AI customers that it currently does business with,” an analyst at Piper Sandler noted.
Warner Bros. Discovery
This week, Warner Bros Discovery Inc (NASDAQ:WBD) announced its new corporate structure, under which Warner Bros. Discovery will serve as the parent company for two distinct operating divisions - Global Linear Networks and Streaming & Studios.
"We continue to prioritize ensuring our Global Linear Networks business is well positioned to continue to drive free cash flow, while our Streaming & Studios business focuses on driving growth by telling the world’s most compelling stories," according to the firm's President and CEO, David Zaslav.
The company expects to complete the implementation of the new corporate structure by mid-2025. The new structure is expected to give it more flexibility.
Alphabet
Alphabet Inc's (NASDAQ:GOOGL) Google kicked off the week by unveiling a new chip called Willow, which demonstrates advanced error correction and performance capabilities, paving the way for a functional, large-scale quantum computer.
The tech giant also unveiled Gemini 2.0, its latest AI model, which Google claims is its most advanced yet.
Even though shares rose during the week following these announcements, Alphabet shares ended the week down by 1.11%.
Separately, The Information reported on Thursday that Alphabet CEO Sundar Pichai was expected to meet with President-elect Donald Trump.