To The Moon

Applied Materials beat expectations and issued a strong AI-driven outlook, but still fell after hours. Tapestry sank nearly 17% as investors focused on weak growth at Kate Spade and a cautious sales forecast.

$Applied Materials(AMAT)$ -5% after hours

• Applied Materials reported quarterly revenue of $9.12 billion, above Wall Street’s $8.99 billion estimate. The chip-equipment maker also guided for next-quarter revenue of about $10.25 billion, well ahead of the $9.54 billion consensus, while adjusted EPS guidance of $4.02 topped expectations of $3.69.

• AI spending remains the main driver. Applied now expects advanced-packaging revenue to grow more than 70% in 2026, up from its previous forecast of more than 50%, as chipmakers keep investing in DRAM, leading-edge logic and packaging capacity.

• Still, the stock dropped more than 5% in extended trading. Shares had already more than doubled this year, leaving little room for anything short of a major upside surprise.

$Tapestry Inc.(TPR)$ -17%

• Tapestry shares plunged as much as 16.9% even though fiscal Q4 adjusted EPS of $1.32 beat the $1.28 consensus. Revenue rose 8.9% to $1.88 billion, roughly in line with expectations.

• The problem was the outlook. Tapestry expects fiscal 2027 revenue of $8.4 billion to $8.5 billion, with the midpoint slightly below Wall Street estimates. Coach remained strong, with sales up 14%, but Kate Spade sales fell 7%. North American growth also slowed sharply from the previous quarter.

• Investors appear increasingly worried that Coach is doing too much of the heavy lifting while the Kate Spade turnaround takes longer than expected.

$JD.com(JD)$ -3.5%

• JD.com reported Q2 revenue of 346.4 billion yuan ($51.37 billion), ahead of the 344.6 billion yuan expected by analysts, but revenue still fell 2.9% from a year earlier — its first quarterly decline in more than a decade. U.S.-listed shares were down about 3.5% following the report.

• Non-GAAP net profit rose 20% to 8.9 billion yuan, while management said it expects electronics and home-appliance sales to improve in the second half as year-over-year comparisons become easier.

• The revenue decline, however, kept attention on weak Chinese consumer demand despite the earnings beat.

Today’s discussion:

AMAT beat expectations and still fell 5%. Would you buy the dip, or wait for a bigger pullback?