Investing.com Weekly Stock Review

As the second week of December concluded, several stocks exhibited notable volatility, mainly reacting to their earnings results. Here are Investing.com’s highlights for the week:

Adobe

Adobe (NASDAQ:ADBE) experienced a sharp decline after reporting disappointing guidance on Thursday. This prompted analysts from RBC Capital, Mizuho (NYSE:MFG), Piper Sandler, and Oppenheimer to lower their price targets to a range of $590–$620.

RBC Capital reduced its price target from $610 to $590 but maintained an Outperform rating, noting solid quarterly results with record DM net-new ARR, even though the upside was less than in recent quarters. An analyst at Mizuho remarked, "ADBE has been a frustrating stock for much of FY24. However, we are confident that ADBE will significantly monetize its Generative AI innovations going forward, anticipating healthy upside to FY25 ARR/revenue guidance as the year develops."

On Friday, Adobe’s stock continued to decline, trading about 2% lower at $465.

Broadcom

Broadcom Inc (NASDAQ:AVGO) stock reacted positively to its earnings, buoyed by optimistic guidance and increasing AI revenues. The company reached a trillion-dollar valuation on Friday, with shares climbing over 24%.

Cantor Fitzgerald reaffirmed its Overweight rating and a $250 price target for the stock. An analyst at Piper Sandler stated, "We see strength in AI continuing at a rapid pace for AVGO, with a SAM of $60B–$90B from its three AI customers."

Warner Bros. Discovery

Warner Bros Discovery Inc (NASDAQ:WBD) this week unveiled its new corporate structure, with Warner Bros. Discovery positioned as the parent company for two distinct operating divisions: Global Linear Networks and Streaming & Studios.

According to President and CEO David Zaslav, "We will prioritize ensuring our Global Linear Networks business continues to drive free cash flow while our Streaming & Studios business focuses on growth through compelling storytelling." The company plans to complete the new corporate structure implementation by mid-2025, aiming for increased flexibility.

Alphabet

Alphabet Inc's (NASDAQ:GOOGL) Google launched a new chip named Willow, showcasing advanced error correction and performance capabilities, pushing towards functional, large-scale quantum computing. The tech giant also introduced Gemini 2.0, its latest AI model claimed to be its most advanced.

Although shares rose during the week following these announcements, Alphabet shares ended the week down by 1.11%. Separately, reports emerged on Thursday that Alphabet CEO Sundar Pichai was expected to meet with President-elect Donald Trump.