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Wednesday, November 5

Noteworthy macro moves today: Gold +1.0%. Bitcoin +1.5%. Nikkei 225 Index (Japan) +1.5%. Noteworthy US mega-cap moves today: Eli Lilly and Co (LLY) +1.5%. 

US equity markets are trading mixed as investors digest the latest employment data and ongoing concerns about valuations in technology stocks. The ADP report indicated that private businesses added 42,000 jobs in October, surpassing expectations of a modest increase and signaling some recovery after previous job losses.

In Japan, government bond yields remain elevated following weak demand at recent auctions for 10-year bonds amid speculation regarding potential interest rate hikes by the Bank of Japan (BoJ). Policymakers have expressed caution over further tightening due to downside risks from global trade tensions while maintaining an optimistic outlook on economic recovery.

Global equities continue to face pressure largely attributed to valuation concerns within tech sectors linked to artificial intelligence investments. This has led many investors into safe-haven assets like gold and currencies such as the Japanese yen amidst fears of a market correction driven by stretched AI-related stock prices.

Bitcoin (BTC/USD) [+1.6%]
Bitcoin prices have dropped below 100,000 for the first time since July amid a broader crypto sell-off, resulting in over 1.7 billion worth of liquidations within 24 hours. This decline is linked to extreme fear sentiment in the market, reflected by an index level of 20, and heightened volatility following Peter Schiff's comments declaring Bitcoin to be in a bear market due to a drop exceeding 21% from recent highs. Social media discussions highlight Bitcoin's recent 12% decline compared to the S&P 500's 1.6% drop, suggesting it may be oversold and could rebound if equities stabilize. Additionally, an essay by @CryptoHayes posits that rising U.S. debt and Fed money printing could support Bitcoin and the broader crypto market. MetaPlanet has secured a 100 million loan backed by its Bitcoin holdings, totaling 30,823 BTC.

AXON | -20.1% | -8.6B
Axon Enterprise Inc | Aerospace & Defense
Axon Enterprise Inc reported its third-quarter earnings on November 4, 2025, revealing an adjusted earnings per share of $1.17, which fell short of the consensus estimate of $1.52 by nearly 23%. Despite a revenue increase of over 30% to $710.64 million, surpassing expectations of $703.50 million, the company posted a net loss of $2 million. Axon announced plans to acquire Carbyne for $625 million to enhance its emergency communications capabilities and raised its full-year revenue guidance to approximately $2.74 billion, exceeding analyst estimates of $2.715 billion. Following this mixed performance, Axon shares dropped significantly in after-hours trading. Social media discussions highlighted concerns about the company's EBITDA margin of 24.9%, which was below the estimated 26.1%, and noted the severe market reaction to even minor earnings misses.

ANET | -9.0% | -4.0B
Arista Networks Inc | Communications Equipment
Arista Networks reported third-quarter earnings, achieving earnings per share of 0.75, surpassing the consensus estimate of 0.71. Revenue reached 2.31 billion, exceeding expectations of 2.27 billion. Despite these positive results, the company guided fourth-quarter revenue between 2.3 billion and 2.4 billion, falling short of the analyst consensus of 2.33 billion, which raised concerns about a slowdown in sales growth. Management cited shipping constraints as the cause of this slowdown, rather than demand issues. Following the announcement, shares dropped significantly in after-hours trading, reflecting a decline of approximately 9%. Social media discussions highlighted both the positive earnings performance and apprehensions regarding future prospects, particularly in relation to AI-related stocks.

PINS | -17.8% | -3.3B
Pinterest Inc | Interactive Media & Services
Pinterest Inc's stock has dropped significantly following its third-quarter earnings report, which revealed an adjusted EPS of 38 cents, below the expected 42 cents. Revenue was reported at $1.049 billion, slightly aligning with expectations, but the fourth-quarter revenue guidance of $1.313 billion to $1.338 billion fell short of the consensus estimate of $1.34 billion. Analysts have reacted by lowering their price targets, with RBC Capital adjusting its target down to $38 from $45, and Rosenblatt downgrading the stock to neutral with a price target of $30. Despite a year-over-year revenue growth of 17% and an increase in global monthly active users to 600 million, the figures did not meet market expectations, contributing to the negative sentiment surrounding the stock. Following the earnings report, Pinterest shares plummeted by 17.8%.

U | +16.2% | +2.6B
Unity Software Inc | Application Software
Unity Software Inc. reported its third-quarter 2025 financial results, posting earnings per share of $0.20, significantly surpassing the consensus estimate of $(0.23) by a notable margin. Revenue for the quarter reached approximately $470.6 million, exceeding the expected $451.4 million and marking a year-over-year increase from $446.5 million. The company anticipates fourth-quarter sales between $480 million and $490 million, above the analyst estimate of $474.1 million. Adjusted EBITDA for Q3 stood at $109 million, reflecting a margin of 23%. Growth in the Create Solutions segment contributed to this performance, generating $152 million in revenue. Social media discussions highlighted these results, emphasizing the strong earnings and revenue figures that exceeded expectations, alongside an upward revision in guidance for Q4. Following the earnings announcement, Unity's stock price increased significantly.

LITE | +16.2% | +2.4B
Lumentum Holdings Inc | Communications Equipment
Lumentum Holdings Inc reported its first quarter fiscal year 2026 financial results, achieving an adjusted EPS of 1.10, surpassing estimates of 1.03, with revenues of 533.8 million, exceeding the consensus of 525.4 million. This marks a year-over-year revenue growth of 58%. The company provided guidance for the second quarter, forecasting adjusted EPS between 1.30 and 1.50 against a consensus of 1.16, with expected revenues of 630 million to 670 million, significantly above the consensus estimate of 561.5 million. Following the earnings announcement, analysts reacted positively, with Needham raising its price target to 235 and Citi increasing it to 240. After the earnings release, LITE's stock moved up by 10%.

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