Investing.com -- Democratic wins in both chambers of Congress eventually triggered a heavy sell-off across AI and chip names, while deal news drove sharp moves in both directions elsewhere.
Here are Investing.com's stocks of the week:
AI and chip stocks
Semiconductor names have been hit hard as investors question whether data center expansion plans will survive a changed political landscape, with Democrats taking both chambers of Congress.
SanDisk leads the declines this week with a 26.9% drop, followed by Micron down 21.5%, Arm 16.1% lower, Lam Research off 15.4%, Applied Materials down 14.1% and KLA 12.2% lower. Broadcom fell 9.6% and Nvidia lost 8.3%.
Lumentum and Marvell
Lumentum dropped 18.7% on Thursday and 38.4% over the week, extending a slide that began when Marvell announced plans to acquire the optical components maker on November 2 in a $115 billion all-stock deal.
The structure ties Lumentum's implied value directly to Marvell's share price through a fixed exchange ratio of 4.5 Marvell shares for each Lumentum share. Marvell fell 32.6% over the week as investors question the financial merits of the acquisition.
Both companies were downgraded. TD Cowen moved Marvell to Hold and cut its target to $175 from $350. B. Riley downgraded Lumentum to Neutral with a target of $770, down from $1,142, while Stifel also moved to Hold with a reduced $806 target.
Tesla and SpaceX
Elon Musk's companies had a rough week after the Democratic victories, with investors weighing the risk that the billionaire and his businesses could be targeted by regulatory moves. Tesla is down 10.3% over the week, while SpaceX declined 2.2%.
DraftKings
DraftKings has sunk 24% on Friday as of 13:10 ET after Thursday's post-close results missed on both lines. Third-quarter losses of $0.53 per share were $0.17 worse than expected, with revenue of $1.33 billion short of the $1.41 billion consensus. Full-year revenue guidance of $6.35-6.55 billion also came in below the $6.65 billion consensus.
BofA Securities analyst Shaun Kelley cut his price target to $23 from $27 while keeping a Buy rating, pointing to a bigger-than-expected reset to 2027 numbers.
He said investors were disappointed by the scale of prediction market investment given looming regulatory risk around sports event contracts, adding that tighter guardrails on spending are critical.
AppLovin
AppLovin was among the week's standouts, rising 31% on Thursday and a further 9.9% by 13:11 ET Friday after Wednesday's third-quarter results beat expectations and guidance was raised. The stock is up 70% over the week.
Earnings of $4.30 per share topped the $4.04 consensus, while revenue of $2.18 billion beat the $2.08 billion expected.
Unity Software
Unity has jumped 39% over the week on a combination of strong results and takeover interest.
Third-quarter earnings of $0.44 per share beat the $0.03 expected, with revenue of $622 million beating the $565.82 million consensus. Fourth-quarter revenue guidance of $683-691 million was above the $601.3 million forecast.
Reuters reported that Unity has held talks about a sale to a consortium including Silver Lake, already an 8% shareholder, and Saudi Arabia's Public Investment Fund.
The two were part of the group that took Electronic Arts private in a $55 billion deal completed in August.
A valuation of roughly $25 billion was said to have been discussed before the results lifted Unity's market capitalization, and the company is reportedly working with an investment bank to weigh its options.
Original Article
Investing.com's stocks of the week
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