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Initial price targets for these 4 stocks were set on Mon, Oct 19th, ahead of respective earnings
Netflix respects downside target after reporting slowest sales growth in 3 years
Meta hits both downside & upside targets; respects downside target again after announcing higher AI capex
Tesla-SpaceX merger report sent both stocks surging, before falling back below respective upside targets
"Respect" = prices did not move far from our targets set for the post-earnings period this week
Tap here for longer list of 10 big stocks with earnings this week (Oct 19-23)
Markets have now delivered their verdict on the latest earnings out SpaceX, Netflix, Meta, and Tesla.
These companies began the week valued collectively at around US$ 5.5 trillion, soaring to about US$5.7 trillion mid-week (US market close on Wed, Oct 21).
However, US stocks are set to fall on Thur, Oct 22nd, dragged down by AI spending concerns, as well as oil prices at a 5-month high.
Still, these 4 Big Tech/AI stocks have already hit our price targets set at the start of the week, on Mon, Oct 19th.
Let's recap the 4 stocks we picked for the week, and how they've each fulfilled their respective trade scenarios:
Netflix fully respects our post-earnings target!
What we wrote on Mon, Oct 12th: "Netflix to hit 2-year low?"
NFLX chart published at start of the week, with downside target set at $64.50:
After US markets closed on Tue, Oct 20th, Netflix then reported its slowest quarterly sales jump in 3 years, while expecting sales to slow in this year-end period, for a 4th consecutive quarter.
Following its earnings release:
Netflix stocks fell and respected our downside target of $64.50 - set since the start of the week.
"Respect" = prices did not move far from our target for the stated period (in this case, the immediate post-earnings reaction).
Meta hits both upside and downside targets!
What we wrote on Mon, Oct 12th:
UPSIDE: META could push towards $737 - and close the gap with its record high ...
DOWNSIDE: DOWNSIDE: META could pull back to around $691.50, and test support around its 50-day SMA (using Bybit perps pricing), if capex guidance for FY27 shocks to the upside, reigniting fears that AI spending is outpacing revenue growth.
Meta chart published at start of the week:
This week, Meta stocks hit both the upside and downside targets set since Mon, Oct 19th, though more notably found support at its 50-day SMA - as we'd expected.
However, after Meta delivered its earnings announcement (after US markets closed on Wed, Oct 21) ...
Meta stocks fell, to once again respect our immediate post-earnings downside target (initiall set on Mon, Oct 19th), after raising its AI capital spending plans for the year.
Tesla soars past upside target, before tumbling
This stock's price action deserves a day-by-day recap (lots happened this week):
Mon, Oct 19th: we'd stated $375.60 as the upside target
Tue, Oct 20th: TSLA initially hit and respected that upside target
Wed, Oct 21st: TSLA soared towards $400 - a price target we had set on Mon, Oct 12th.
And here's why ...
"Elon Musk said that Tesla and SpaceX have set up committees to explore a merger."
As we wrote two Mondays ago: "TSLA could reclaim the $400 psychological level for the first time since mid-July, if the Roadster launch delivers a positive shock while reawakening the Tesla-SpaceX merger mania."
However, that surged proved short-lived.
Wed, Oct 21st (after US markets closed) - Thur, Oct 22nd: Tesla tumbled after the world's most valuable automaker reduced its capex target from US$ 25 billion down to US$ 20 billion for 2026.
In other words ...
TSLA traders who, at the start of the week, had set their "Take Profit" levels at $375.60 would have enjoyed locked-in profits without the risk of rising out the ensuing pullback.
SpaceX briefly breaches upside target
What we wrote on Mon, Oct 19th: "SpaceX to extend its rebound?"
SPCX chart published at start of the week, with upside target set at $158:
Tue, Oct 20th: Similar reason to Tesla (see above), Musk's comments about the potential Tesla-SpaceX merger then sent this stock soaring - ending the day close to (just $1.51 / 1.6% above) our $158 upside target.
At the time of writing: after peaking intraday at $166.30 on Wed, Oct 21st (highest price this week so far), SpaceX stocks have since eased back below that $158 upside target.
SPCX traders who, at the start of the week, had set their "Take Profit" levels at $158 would have enjoyed locked-in profits without the risk of rising out the ensuing pullback.
In other words, $158 may just be about as good as it gets this week for traders who accurately expected SpaceX to "extend its rebound" - as we'd written since Mon, Oct 19th.
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DISCLAIMER: This article is provided for general information purposes only and does not constitute investment advice, nor an offer or solicitation to buy or sell any financial instruments or digital assets. Past performance is not indicative of future results. Your ability to access or use any products or services mentioned may be subject to the laws and regulatory requirements of your jurisdiction.
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