Target Bombs Earnings, Stock Plummeting 18%

Good morning. It’s November 20th, and today we’ll take a look at why Target is precipitously falling, Wix.com’s positive earnings report, and a tiny robotics stock that is rallying by 30% in premarket trade.

Previous Close 📈

Wall Street remained cautiously optimistic on Tuesday as the major indexes posted mixed results. The Nasdaq Composite led gains, rising by 1%, driven by strength in tech stocks. The S&P 500 added 0.4%, while the Dow Jones Industrial Average lagged, dropping 0.3%.

Futures

Stock futures are edging higher today as investors await NVIDIA’s critical quarterly report. Futures tied to the Dow Jones Industrial Average are up 73 points (+0.2%), while S&P 500 futures and Nasdaq-100 futures are advancing +0.1%.

Music Industry

This $4.2 Billion Opportunity Could Transform the Music Industry

The music industry is on the brink of a monumental shift, with Goldman Sachs forecasting a $4.2 billion addressable market emerging from the monetization of superfan products and experiences.

As artists and labels adapt to meet this demand, a leading company has developed proprietary technology to power this transformation.

Protected by 15 granted patents, this innovative infrastructure allows artists to scale personalized fan experiences, creating new revenue streams and driving growth across the industry.

With the potential to capture 60% of this market by 2027, the opportunity for investors to benefit from this evolution is significant.

Top artists and major record labels are already taking notice, signaling the scale of this market potential. Early investors are uniquely positioned to capitalize on what could become a defining shift in how music is monetized.

Learn more about this emerging opportunity and how you can secure your stake today.

What to Watch

Several big names will release their quarterly earnings this morning, including TJX Companies (NYSE: TJX), Target Corporation (NYSE: TGT), Williams-Sonoma (NYSE: WSM), Wix.com (NASDAQ: WIX), NIO (NYSE: NIO), Full Truck Alliance (NYSE: YMM), and Berry Global Group (NYSE: BERY), before the market opens.

After hours, all eyes will be on chip giant NVIDIA Corporation’s (NASDAQ: NVDA) results. Tech biggies Palo Alto Networks (NYSE: PANW) and Snowflake (NYSE: SNOW) will also share their reports in the evening.

On the economic data side, there are key speeches and data points to watch. Fed Governor Lisa Cook will speak at 11:00 a.m. ET, followed by Michelle Bowman at 12:15 p.m. ET. Boston Fed President Susan Collins will close the day with remarks at 4:00 p.m. ET.

Retail

Target Misses Q3 Earnings, Lowers Holiday Forecast Amid Consumer Caution, Shares Plunge

Target’s third-quarter earnings are well below Wall Street expectations, and the firm also revised its full-year guidance downward. The retailer cited cautious consumer spending and unplanned supply chain costs as significant challenges, particularly in discretionary categories like home goods.

Target’s net sales of $25.7 billion are up 1.1% year-over-year but fall just short of analysts’ expectations of $25.74 billion. Its 27.2% gross profit margin is also below the estimated 28.7%.

Diluted earnings per share (EPS) are at $1.85, missing guidance and analyst estimates of $2.30. Comparable sales are up by a modest 0.3%, lagging behind Walmart’s 5.3% increase in the same period.

CEO Brian Cornell acknowledged the challenging environment, emphasizing a "conservative approach" for the holiday season despite what he called a "good start" to early shopping. However, Target's inventory grew by 3%, outpacing its sales growth and signaling inefficiencies that could strain margins.

Looking ahead, Target projected its fourth-quarter EPS between $1.85 and $2.45, below estimates of $2.65. Full-year EPS guidance was also revised to $8.30-$8.90 from the previous $9.00-$9.70 range.

The stock is down by nearly 18% in premarket trade.

Technology

Wix.com Exceeds Expectations in Q3, Forecasts Accelerated Growth for Q4

SaaS website builder Wix.com’s third-quarter results announced today are well beyond market expectations, and the firm also lifted its full-year 2024 outlook, causing its shares to jump by nearly 13% in premarket trade.

The company’s net income has risen to $26.78 million, or $0.46 per share, compared to $6.98 million, or $0.12 per share, in the prior year. Adjusted earnings are at $1.50 per share, beating analysts’ estimates of $1.43.

Revenue is up 13% year-over-year to $444.67 million, exceeding Wall Street expectations of $443.96 million. Total bookings are 16% higher than the previous year, bolstered by 15% growth in creative subscriptions and strong momentum in commerce and AI-driven services.

Looking forward, Wix forecasted fourth-quarter revenue between $457 million and $464 million, representing 13%-15% year-over-year growth. For the full fiscal year 2024, the company raised its revenue projection to $1.757 billion-$1.764 billion, up from previous estimates of $1.747 billion-$1.761 billion. Full-year bookings guidance was also upgraded to $1.822 billion-$1.832 billion, reflecting 14%-15% growth.

Wix.com highlighted the role of AI integration, robust commerce activity, and strong fundamentals as key drivers of its performance. Adjusted gross margin is now expected to be around 69%, slightly above prior estimates.

The company anticipates further acceleration in bookings growth in the second half of the year and continued margin expansion into 2025, signaling confidence in its strategic initiatives and market position.

Electronics

Keysight Shares Pop on Better-Than-Expected Q4, Issues Positive Fiscal 2025 Guidance

Keysight Technologies’ stock is up 10% in premarket trading after fiscal fourth-quarter results that are better than analyst expectations and a positive outlook for the first quarter of 2025.

The electronics test and measurement equipment maker’s projected adjusted earnings are between $1.65 and $1.71 per share for the ongoing quarter, ahead of analysts’ consensus estimate of $1.60, with revenue anticipated to range from $1.27 billion to $1.29 billion.

For the fourth quarter, Keysight’s adjusted earnings per share are at $1.65, surpassing the $1.57 forecast by analysts, despite a decline from $1.99 a year ago.

Revenue is at $1.29 billion, down slightly from $1.31 billion but still better than Wall Street's $1.26 billion expectation. Orders are up to $1.35 billion, reflecting an 8% sequential growth fueled by strength in artificial intelligence and robust year-end bookings in the U.S. aerospace and defense sectors.

While the Communications Solutions Group’s revenue has increased marginally to $894 million, electronic industrial solutions sales have dropped 6% to $393 million due to manufacturing spending constraints. The company also incurred a $315 million tax expense linked to a new Singapore tax incentive.

For fiscal 2025, Keysight anticipates revenue growth at the low end of its 5%-7% long-term target, with earnings growth aligning with its 10% guidance. CEO Satish Dhanasekaran highlighted ongoing momentum in AI and government-related sectors as drivers for the company’s positive trajectory.

Technology

This AI Startup is Quietly Doubling Revenue

The marketing industry is being transformed, and one AI startup is leading the charge. Delivering 3.5X ROI to Fortune 1000 clients and backed by the likes of Adobe Fund, Meta, and Google, this company is experiencing extraordinary growth.

Its valuation has skyrocketed from $5M to $85M in just three years, and revenue is doubling year over year.

But here’s the thing—while some investors are seizing this opportunity, most are missing out. AI innovation is reshaping industries at lightning speed, and those who act early often see the greatest rewards.

Sitting on the sidelines could mean watching this company’s growth story unfold without being a part of it.

At just $0.50 per share, with a 10% bonus for early investors, this is a rare chance to get in before the broader market catches on.

The traction is undeniable, and the potential for exponential returns is clear.

Learn more about this AI disruptor and see why so many investors are taking notice.

Dolby Laboratories Inc [DLB] - Last Close: $70.91

Dolby Laboratories Inc. is rallying by 14.3% in premarket trading today.

The firm released its Q4 earnings report yesterday, where it reported earnings per share of $0.81, surpassing analysts' expectations of $0.70.

Additionally, Dolby's revenue for the quarter was $304.81 million, slightly below the anticipated $307.94 million.

The company also provided a strong forecast for fiscal year 2025, contributing to the positive market reaction.

The firm has also upped its dividend by 10% from $0.27 to $0.30 per share today.

Nauticus Robotics [KITT] - Last Close: $0.91

Nauticus Robotics' stock is up 29.6% in premarket trade.

The firm is going into a strategic collaboration with SeaTrepid International, announced today.

This partnership involves integrating Nauticus’ ToolKITT software onto SeaTrepid's Remotely Operated Vehicles (ROVs).

This collaboration provides Nauticus with recurring revenue through annual software maintenance and gives SeaTrepid a competitive edge in enhanced ROV capabilities.

The agreement also includes testing and certification at SeaTrepid's facilities, showcasing the growing adoption of Nauticus’ technology in the underwater robotics sector, likely driving investor confidence.

Skywater Technology [SKYT] - Last Close: $8.21

SkyWater Technology is surging by 13% in premarket trade.

The firm announced that it is expanding its collaboration with Quantum-Si on the Proteus™ platform.

The partnership leverages SkyWater’s manufacturing capabilities to develop advanced consumables for Quantum-Si’s next-generation proteomics platform.

This innovation promises to revolutionize protein sequencing, enabling groundbreaking advancements in diagnostics and treatments for diseases.

Investors are responding to the potential market impact and the company’s growing presence in the high-growth proteomics and biotechnology sectors.

Both Skywater Technology and Quantum-Si’s stocks are up by about 13%.

Billion Dollar Industry

This Could Be the Future of the Music Industry

Goldman Sachs projects the global music market will surpass $160 billion by 2030, but a deeper transformation is already underway.

The next major economic wave in music will be driven by direct-to-consumer engagement and monetization, redefining how artists connect with their fans.

Much like Amazon and Shopify revolutionized eCommerce by cutting out traditional retailers, a new platform is empowering artists to bypass middlemen like streaming services, social media platforms, and ticketing agencies.

This innovative infrastructure enables artists to fully monetize their audience, strengthen relationships with top fans, and build a loyal base of superfans—proven to spend up to 80% more than the average listener.

With 15 granted patents and cutting-edge technology, this company is poised to lead the way in powering this direct-to-fan revolution. For investors, this represents a rare opportunity to join an industry poised for massive growth and transformation.

Discover more about this game-changing opportunity and how to become an investor today.

Everything Else

• Bill Hwang, Archegos founder, could serve 21 years for fraud as prosecutors push for severe penalties.

• MSNBC, CNBC, and other cable networks to form a new company under Comcast’s spinoff plan.

• NIO forecasts strong Q4 growth but shares slide after missed Q3 revenue expectations.

• Exxon expands into lithium with an LG Chem deal as Arkansas royalty debate looms.

• China’s localization push fuels an SMIC rally but analysts warn of valuation risks.

• Convenience store giant 7-Eleven's owner’s shares surge after reports of a competing private equity bid.

• Rising U.K. inflation sparks concerns over prolonged economic pressures and policy shifts.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

Click here to get our daily newsletter straight to your cell for free.

P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.