Investing.com — This week has seen significant activity in the markets, with several notable names making headlines for a variety of reasons. Here are Investing.com’s top stocks of the week: Target (NYSE:TGT), Super Micro Computer (NASDAQ:SMCI), and MicroStrategy.
Target
Target shares plunged by almost 22% Wednesday after the company’s latest quarterly earnings significantly disappointed investors.
The retailer reported Q3 earnings of $1.85 per share, $0.45 worse than the analyst estimate of $2.30 per share, while revenue for the quarter came in at $25.67 billion, below the consensus estimate of $25.87 billion.
Furthermore, Target said it sees FY2025 EPS between $8.30 and $8.90, well below the consensus of $9.52.
Following the results, both Citi and Deutsche Bank (ETR:DBKGn) downgraded the stock to Neutral/Hold from Buy.
“With Walmart (NYSE:WMT) mkt share gains coming largely from higher income consumers, TGT seems to be the one most at risk of losing additional share,” Citi stated.
“While we still believe TGT’s long-term potential remains, regaining lost market share will likely require substantial price investments and stepped-up promos, pressuring margins and profitability,” said Deutsche Bank.
Super Micro (SMCI)
After significant declines over the last few weeks, SMCI made substantial gains (+85% at the time of writing) this week.
The gains started on Monday after a report emerged that the company plans to submit a proposal to maintain its listing on the Nasdaq Stock Market. The rise was then boosted after SMCI announced that the Audit Committee of its Board of Directors had engaged BDO USA, P.C. (BDO) as its independent auditor, effective immediately. The company also sought an extension from Nasdaq for its delayed financial filings.
The company then, on Wednesday, said it had submitted a compliance plan to Nasdaq on November 18, 2024, regarding supporting its request for an extension of time to regain compliance with the Nasdaq’s continued listing requirements. The Company indicated that it believes it will be able to file both its Annual Report on Form 10-K for the fiscal year ended June 30, 2024, and its Quarterly Report on Form 10-Q for the period ended September 30, 202,4, and become current with its periodic filings within the discretionary period available to the Nasdaq staff to grant.
So far, as of 13:50 ET on Friday, SMCI shares are up around 10.8%.
MicroStrategy
MicroStrategy made our Stocks of the Week list for the second time in a row as its shares continued to rally.
At the time of writing, it is up around 31.6% in the last week of trading. It is up 12% so far on Friday.
With Bitcoin continuing to rally, trading above the $99,000 mark and approaching $100,000, MSTR has benefitted significantly.
On Wednesday, MicroStrategy announced it completed the offering of its 0% convertible senior notes due 2029, with the aggregate principal amount of the notes sold in the offering being $3 billion.
The company said it plans to use the net proceeds to acquire additional Bitcoin and for general corporate purposes.