markets

Matt Phillips5/19/25

It’s a cloudy day for solar stocks, as clean energy tax credits are threatened

The overall market is down only slightly, but several solar-related names were among the day’s worst performers midday, after GOP lawmakers in the House of Representatives said they intend to axe clean energy tax credits more quickly than planned.

House Republicans have looked for areas to cut in order to offset the extensions of large income tax cuts first passed under President Trump in 2017, and the addition of new tax cuts on tips and overtime pay.

Climate-related policies championed by Democrats seem likely to be on the chopping block, which is being reflected in today’s trading.

First Solar, renewable-heavy power generation company AES Corp., and solar microinverter maker Enphase Energy top the list of the day’s decliners at noon. Not to be forgotten, of course, is Tesla, which has a solar arm and is also reliant on the electric vehicle tax credits that would be abolished under the bill House Republicans just pushed out of committee.

Solar Companies Slump as GOP Targets Earlier End to Tax Credits

Solar Companies Slump as GOP Targets Earlier End to Tax Credits

Climate-related policies championed by Democrats seem likely to be on the chopping block, which is being reflected in today’s trading.

First Solar, renewable-heavy power generation company AES Corp., and solar microinverter maker Enphase Energy top the list of the day’s decliners at noon. Not to be forgotten, of course, is Tesla, which has a solar arm and is also reliant on the electric vehicle tax credits that would be abolished under the bill House Republicans just pushed out of committee.

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GitLab slumps as Q4 guidance underwhelms and management issues erroneous full-year outlook

GitLab is sinking in early trading Wednesday after a management oopsie added to the sting of its third-quarter results released after the close on Tuesday.

While the software development company exceeded expectations on the top and bottom lines, its Q4 forecast of adjusted net income per share from $0.22 to $0.23 on sales of $251 million to $252 million failed to impress, as the midpoints of these ranges were virtually in-line to a touch below the Street’s view.

Furthermore, the totality of its guidance didn’t add up: in its first press release, management said adjusted net income per share would come in between $0.95 and $0.96.

Given Q1 adjusted net income per share came in at $0.17, Q2 was $0.24, and these Q3 results showed $0.25, that implied its Q4 guidance should have been $0.29 to $0.30 to be consistent with the full-year view. Late on Tuesday night, GitLab corrected this error, stating that its full-year view was actually for $0.88 to $0.89 in adjusted net income per share.

That certainly didn’t help improve sentiment on the company, given that Wall Street was already a little negative on the details of its results and the outlook.

“GitLab's softening net revenue retention rates and lower overall customer additions highlight execution challenges and reinforce our concerns about AI-driven headwinds to seat growth and the pace of AI feature-led upselling and monetization,” writes Bloomberg Intelligence senior technology analyst Sunil Rajgopal.

GitLab’s net retention rate slipped to 119% in Q3, below estimates for 119.8%.

The stock is seeing a flurry of pessimism across Wall Street this morning, with Mizuho lowering its price target to $47 from $52, KeyBanc reducing its to $49 from $53, Goldman Sachs cutting to $42 from $48, Wells Fargo trimming to $45 from $50, and Barclays and Truist edging theirs lower to $42 from $44.

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Claire Yubin Oh33m

Zara owner Inditex soars after reporting strong Q3 and November sales

Inditex is up 8% in early trading in Madrid, the stock’s biggest intraday jump in five years, after the world’s largest listed clothing retailer reported robust November and third-quarter results on Wednesday.

The Zara and Pull&Bear owner reported sales rose 8.4% at constant currencies to hit €9.8 billion ($11.41 billion) in the third quarter that ended October 31. The company also said that currency-adjusted sales growth of 10.6% in November, marking a strong start to the retailers’ Q4 — one which includes the crucial Black Friday discounting period.

In what is usually the company’s most profitable period of the year, as many of its products are sold at full price, CEO Oscar Garcia Macieras commented in a call with analysts that “in the nine months of 2025, we have generated a strong performance, with sales growth in a complex market environment while maintaining very satisfactory levels of profitability.” Gross profit for the third quarter grew 6.2% to €6.1 billion ($7.1 billion), hitting a 62% gross margin.

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CrowdStrike beats on Q3 revenue and earnings

CrowdStrike eked out beats on both earnings and revenue for the third quarter, while also raising its full-year guidance.

The cybersecurity company reported earnings of $0.96 per share, beating analysts’ consensus estimate of $0.94 per share.

The company saw $1.23 billion in sales for the quarter, up 22% year on year, beating analysts’ expectation of $1.21 billion in sales. The company reported a net loss of about $34 million.

Subscription revenue was $1.17 billion, up 21% year on year.

Shares were little changed in after-hours trading. The stock is up nearly 50% since the start of the year.

The company’s annual recurring revenue reached $4.92 billion as of October 31, up 23% year on year. The analyst consensus was $4.895 billion.

The company raised its fiscal year 2026 guidance for revenue to between $4.8 billion to $4.81 billion (previously $4.75 billion to $4.81 billion), and upped its outlook for adjusted earnings per share to a range of $3.70 to $3.72 (previously $3.60 to $3.72).

Burt Podbere, CrowdStrike’s CFO, wrote in the press release:

“We delivered outstanding third quarter results, exceeding expectations across all guided metrics. Total revenue growth accelerated to 22% year-over-year, and we delivered record cash flow from operations of $398 million and record Q3 free cash flow of $296 million. We are capitalizing on the AI-driven demand environment as customers consolidate on the Falcon platform, driving our pipeline to an all-time high.”

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Marvell Technology soars after CEO targets $10 billion in revenues next year

Despite Marvell Technology initially falling in after-hours trading after the chip company posted Q3 results modestly ahead of estimates and Q4 guidance in line with expectations, it’s now turned those losses into massive gains thanks to positive commentary on next year’s sales outlook. Shares are up almost 10% as of 5:20 a.m. ET.

On the earnings call, CEO Matt Murphy said that sales could eclipse $10 billion in its upcoming fiscal year, while analysts had penciled in a forecast below $9.5 billion.

That solid anticipated pick-up in sales is being driven by Marvell’s custom chip division, where Murphy touted recent customer wins including an “emerging hyperscaler.”

“We expect our custom business, roughly a quarter of our overall data center revenue, to grow by at least 20% next year,” he said.

While custom chips sales have been a relatively lumpy line item for Marvell, Murphy doesn’t think that will be the case going forward, saying that there won’t be any more “air pockets.”

The Q3 results:

Net revenue: $2.075 billion (compared to estimates for $2.06 billion)
Adjusted earnings per share: $0.76 (estimate: $0.74)

For Q4, management offered guidance for net revenues to come in at $2.2 billion (plus or minus 5%) with adjusted EPS of $0.79 (plus or minus $0.05). That’s virtually bang in line with Wall Street’s call for $2.19 billion and $0.79, respectively.

Along with these results, Marvell announced plans to buy Celestial AI, a company that uses light to move data between chips, for at least $3.25 billion in cash and stock. The purchase price could go up by as much as $2.25 billion if Celestial’s cumulative revenues reach at least $2 billion by the end of Marvell’s fiscal 2029 (roughly speaking, calendar year 2028).

The chip stock has been on a solid run recently, thanks in large part to a wave of investor enthusiasm over custom chips spurred by the launch of Google’s Gemini 3. Marvell works with Amazon as a codesigning partner for its custom chips, including providing connectivity infrastructure for the Trainium3 model, which was publicly launched on Tuesday.

That being said, Marvell has been one of the worst chip stocks this year, and is still down around 7.5% for the year so far.

Tasha Matsumoto

Megacap tech drives stocks higher; bitcoin rebounds

Speculative stocks and bitcoin rebounded as traders’ risk appetite resumed.

Dennis Rodman (R) of the Chicago Bulls grabs a rebound from Karl Malone (L) of the Utah Jazz 01 June during the second half of game one of the NBA Finals at the United Center in Chicago, Illinois.

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