Markets are down 10 basis points as November draws to a close. Investors are reacting strongly to three reports.
The first data point is an earnings report. Micron (MU), a memory chip supplier, dropped by 4.41% after posting quarterly results and raising its guidance. The firm increased its outlook for adjusted revenue to $4.7 billion. It needed more than the $100 million increase to impress investors. MU stock is up 48.4% YTD, so it needed a brighter outlook to attract buyers.
The second data release is Cyber Monday sales topping a record $12.4 billion. According to Adobe Analytics, U.S. shoppers bought deeply discounted items online. The 9.6% increase in this spending outpaced inflation rates and Adobe’s $12 billion forecast. Markets are wary of retailers like Macy’s (M), Walmart (WMT), and Best Buy (BBY) relying on generous discounts to attract buyers. In addition, BNPL – Buy Now, Pay Later – accounted for $940 million of the purchases.
In the cybersecurity and zero trust market, Zscaler (ZS) edged lower after posting results. It recovered from after-hours selling on Tuesday morning. The stock lost 6% in after-hours trade. The firm posted higher operating expenses, which increased by 24% to $431.4 million. In its second quarter, Zscaler forecasts revenue between $505 million and $507 million.
On Zscaler’s conference call, management highlighted the strong demand for its Zero Trust security platform. In addition, a customer bought its new Risk 360 solution, getting workload protection for the organization.
