Both equities are getting blasted in the options pits after earnings
Big Tech is hitting the earnings confessional hard, with reports from Meta Platforms (META) and Microsoft (MSFT) to unpack. Both IBM (NYSE:IBM) and Wolfspeed Inc (NYSE:WOLF) just announced their own quarterly results as well.
IBM handily beat fourth-quarter earnings estimates, as customers rushed to invest in cloud infrastructure that supports artificial intelligence (AI) technology. The stock also attracted no fewer than nine price-target hikes, including one from BMO to $280 from $260. Shares are up 12.6% to trade at a record high $257.44 at last check, eyeing their best day ever while sporting a 52.6% nine-month lead.
Wolfspeed announced a smaller-than-expected loss for the fiscal second quarter and beat revenue expectations, citing "significant progress" on its new operating plan. Nevertheless, analysts chimed in with four price-target cuts, including one from Mizuho to $5 from $7.50. Last seen down 0.6% at $5.97, WOLF has struggled with overhead pressure at its 40-day moving average since November, and carries an 81.8% year-over-year deficit.
Both equities are attracting options volume today. IBM has seen 14 times the options volume typically seen at this point, while WOLF has seen double. For the former, the most active contract is the February 230 call, while for the latter it's the weekly 1/31 5-strike put.