To The Moon

Tuesday delivered several sharp earnings moves. Baidu was the biggest high-profile loser as its advertising business weakened, while Amer Sports gained on another strong quarter. After the bell, La-Z-Boy plunged and Keysight bounced on a beat-and-raise report.

$Klarna Group plc(KLAR)$-23%

Klarna is a Swedish fintech company best known for “buy now, pay later” payment services.

Klarna reported Q2 revenue of $1.04 billion, up 27% year over year, while the company swung to a $9 million net profit, better than expectations for a loss. GMV rose 18% to $36.6 billion, with U.S. GMV growing 27%.

The problem was guidance. Klarna cut its 2026 revenue forecast to $4.08 billion–$4.16 billion, down from $4.34 billion previously, and lowered GMV guidance to $149 billion–$151 billion from more than $155 billion. Management pointed to weaker retail conditions in Germany, its largest market.

Shares plunged about 23%, as investors focused on the slower growth outlook despite the earnings beat.

$Baidu(BIDU)$ -12.8%

Baidu（China’s largest search engine company）shares tumbled nearly 13% after Q2 revenue fell 4% year over year to RMB31.33 billion ($4.7 billion), below the RMB31.96 billion Wall Street expected. Net income dropped to RMB2.3 billion, from RMB7.3 billion a year earlier.

The biggest drag remains advertising. Online marketing revenue fell 19%, as weak consumer spending and China’s property slowdown continued to pressure ad budgets. AI provided some relief: revenue from Baidu’s AI-powered core businesses rose 25% to RMB12.5 billion, while AI cloud infrastructure revenue grew 50%.

Investors are still waiting for AI growth to become large enough to offset the decline in Baidu’s traditional search business.

$Amer Sports, Inc.(AS)$ +3.3%

Amer Sports beat expectations and raised its full-year outlook. Q2 revenue jumped 32% to $1.63 billion, above the roughly $1.54 billion consensus, while adjusted EPS of $0.22 doubled Wall Street’s $0.11 estimate.

Growth was broad-based: Arc’teryx-led Technical Apparel sales rose 32%, Outdoor Performance climbed 37%, and Ball & Racquet Sports grew 24%. Amer also raised its 2026 revenue growth outlook to about 24%, from 20%–22% previously.

Shares gained 3.3% Tuesday after trading as much as 8% higher intraday.

$Keysight(KEYS)$ +3% after hours

Keysight Technologies (KEYS) — A test-and-measurement company that makes equipment used to develop semiconductors, telecom networks and electronics.

Keysight bounced after hours after comfortably beating Wall Street estimates. Fiscal Q3 adjusted EPS came in at $3.07 versus $2.48 expected, while revenue reached $1.85 billion, ahead of the $1.75 billion consensus.

The outlook was strong as well. Keysight expects fiscal Q4 adjusted EPS of about $3.37 on revenue of roughly $1.94 billion, both well above analyst forecasts. Shares rose about 3% after hours after falling 5.6% during Tuesday’s regular session.

$La-Z-Boy(LZB)$ -16% after hours

La-Z-Boy plunged roughly 16% after reporting adjusted EPS of $0.43, below the $0.49 analysts expected. Revenue fell 3% to $475.7 million, missing the roughly $501 million consensus.

The next-quarter outlook added to the pressure. La-Z-Boy expects sales of $500 million to $520 million, below Wall Street’s $537 million estimate, as weaker wholesale demand and higher investment spending weigh on results.

$Home Depot(HD)$ shares little changed

Home Depot is the largest U.S. home-improvement retailer, selling building materials, tools and renovation products.

Home Depot reported Q2 revenue of $47.86 billion, above Wall Street’s roughly $47.24 billion estimate. Comparable sales rose 1.7%, including 1.3% growth in the U.S., while adjusted EPS came in at $4.92.

The company kept its full-year sales growth outlook at 2.5%–4.5%. Consumers are still spending on smaller repair and maintenance projects, but demand for big-ticket renovations remains weak as high borrowing costs keep the housing market sluggish.

Today’s discussion:

Baidu just dropped 13% after earnings. Would you buy the dip or stay away?