On Wednesday, U.S. stock markets displayed a mixture of gains and losses, reflecting a complex investing environment. The Dow Jones Industrial Average advanced by 0.53%, closing at 49,501.30. In contrast, the S&P 500 retreated 0.5% to 6,882.72, and the Nasdaq Composite dropped 1.51%, ending the session at 22,904.57. These movements were influenced in part by investor reactions to quarterly reports and outlooks from several prominent technology companies, which drew significant attention throughout the trading day.
Alphabet Inc. (NASDAQ: GOOG, GOOGL)
Shares of Alphabet’s Class C stock declined by 2.16%, finishing at $333.34 per share. The stock traded within a range of $329.37 to $344.25 during the session, with a 52-week range spanning from $142.66 to $350.15. Alphabet's Class A shares also ended the day lower by 1.96%, closing at $333.04.
The company reported strong fourth-quarter financial results, surpassing expectations with revenue growing by 18% year over year to $113.83 billion. Earnings per share (EPS) came in at $2.82, reflecting robust performance particularly within its Search and YouTube divisions, alongside an impressive 48% increase in Google Cloud revenue. However, shares dipped in after-hours trading as investors reacted to Alphabet’s announcement of a substantial capital expenditure plan of $175 billion to $185 billion for 2026, which raised concerns regarding future spending despite ongoing momentum in artificial intelligence (AI) driven growth.
Qualcomm Inc. (NASDAQ: QCOM)
Qualcomm’s stock appreciated by 1.16% to close at $148.89. Its intraday trading spanned from $148.17 to $153.47, and the stock’s 52-week performance ranges between $120.80 and a high of $205.55. Notably, Qualcomm shares declined sharply by 9.68% during after-hours trading, falling to $134.48.
The semiconductor giant reported record first-quarter revenue of $12.25 billion, alongside adjusted EPS of $3.50, which beat market expectations. Automotive segment sales exceeded $1 billion for a consecutive quarter, highlighting diversification. Nonetheless, the company forecasted weaker than expected second-quarter revenue ranging from $10.2 billion to $11.0 billion, with adjusted EPS projections between $2.45 and $2.65. The cautious guidance cited ongoing supply chain constraints specifically related to memory components, a factor contributing to the after-hours selloff.
Arm Holdings Plc (NASDAQ: ARM)
Arm Holdings exceeded fiscal third-quarter forecasts by reporting revenue of $1.24 billion and adjusted EPS of 43 cents. This represented a 26% year-over-year increase fueled by heightened royalty and licensing income connected to rising AI applications, data center expansion, and smartphone demand.
Despite this strong quarterly performance, shares declined in post-market trading as investors analyzed the company’s guidance for the fourth quarter projecting revenue between $1.42 billion to $1.52 billion and adjusted EPS between 54 and 62 cents. These forecasts were broadly in line with analyst expectations, leading to a tempered market response despite Arm’s record results.
Broadcom Inc. (NASDAQ: AVGO)
Shares of Broadcom closed down 3.83% at $308.05, oscillating between $295.30 and $319.51 during the regular session. The stock has a 52-week performance range from $138.10 to $414.61. Notably, Broadcom shares increased by 6.22% to $327.20 in after-hours trading.
The after-hours surge followed Alphabet’s strong quarterly report and its announcement of elevated capital expenditures for 2026. The planned $175 billion to $185 billion spending, significantly higher than earlier forecasts, signals considerable acceleration in AI and data center investments. Broadcom, as a supplier of custom ASIC and TPU chips essential to Google’s AI infrastructure and cloud services growth, stands to benefit from these increased expenditures, underpinning its positive after-hours price movement.
Snap Inc. (NYSE: SNAP)
Snap’s common stock fell 3.11%, closing at $5.91 with intraday highs and lows of $6.12 and $5.86, respectively. The 52-week trading range spans from $5.86 up to $11.57. In after-hours trading, the stock rebounded, rising 2.88% to $6.08.
This uptick followed Snap’s release of better-than-anticipated fourth-quarter financial results. The company swung to profitability with earnings of 3 cents per share, surpassing forecasts of a loss. Revenue increased by 10.2% year-over-year to $1.72 billion. The quarter also demonstrated early signs of the company’s shift toward sustained profitability, supported by margin expansion and greater revenue diversification, even as daily active user numbers decreased slightly. Management highlighted growth in global monthly active users, reaching 946 million, and noted robust engagement within its Spotlight feature, supporting confidence in its long-term strategic trajectory.
Market Metrics and Analysis
Benzinga Edge Stock Rankings currently place Alphabet’s Class C shares in the 22nd percentile for Value and the 92nd percentile for Momentum, reflecting investor sentiment and stock characteristics amid the prevailing market dynamics.
Summary of Key Developments
- Market indices showed divergent performances, with the Dow gaining, while the S&P 500 and Nasdaq fell, reflecting investor caution amid mixed corporate earnings.
- Alphabet reported strong Q4 revenue and EPS growth driven by AI-related segments but faced investor concerns due to elevated 2026 capital expenditure plans.
- Qualcomm achieved record quarterly revenue surpassing estimates but lowered guidance amid memory supply constraints, spurring a decline in after-hours shares.
- Arm Holdings posted record quarterly gains derived from AI and smartphone-related licensing but saw shares slip after mostly expected guidance.
- Broadcom’s shares rallied after-hours, propelled by Alphabet’s increased AI-related capital spending plans, benefiting Broadcom’s chip supply role.
- Snap displayed a return to profitability with revenue growth and user engagement, offsetting a slight decline in daily active users and supporting renewed investor confidence.
Risks and Uncertainties
- Alphabet’s sizeable planned capital expenditures through 2026 may pressure financial flexibility despite current growth momentum.
- Qualcomm’s forecast is tempered by ongoing industry-wide memory supply disruptions, introducing uncertainty in near-term revenue and earnings.
- Market reactions to in-line guidance from Arm Holdings indicate investor sensitivity to growth sustainability and future outlook alignment.
- Volatility in demand and user metrics at Snap highlights challenges in balancing profitability with user engagement trends.