Meta Stock Drops After Earnings; Moderna Surges

Shares of a social media juggernaut slumped as investors balked at its rapidly accelerating spending on artificial intelligence, while reports of potential partnership or buyout talks helped a vaccine maker’s shares shoot higher.

Major U.S. equities indexes moved lower as investors mulled over a meeting between the presidents of the U.S. and China, a cautious tone from the Federal Reserve chair following yesterday’s rate cut, and the latest quarterly earnings reports. The S&P 500 slid 1%. The Dow dipped 0.2%, while tech sector underperformance dragged the Nasdaq 1.6% lower. See here for more reporting from Investopedia on the day’s big market stories. 

Facebook, Instagram, and WhatsApp parent Meta Platforms (META) reported third-quarter earnings per share that fell significantly shy of analysts’ forecasts, reflecting the impact of a $16 billion one-time tax charge related to the One Big Beautiful Bill. The social media giant also lifted the low end of its 2025 capital expenditure forecast and said expenses would grow “significantly faster” next year, raising concerns about its steep spending on artificial intelligence. Meta shares tumbled 11.3%.

Chipotle Mexican Grill (CMG) stock fell 18.2%, the most of any S&P 500 component, after the fast-casual burrito chain reported lower-than-expected third-quarter revenue and reduced its full-year forecast for comparable-restaurant sales. The company pointed to declines among 25- to 34-year-old customers who make less than $100,000, a key cohort that Chipotle says is turning to at-home food options amid a challenging macroeconomic environment.

Shares of EMCOR Group (EME) dropped 16.6% after the mechanical and electrical construction specialist posted its third-quarter results. Although sales and profits came in ahead of expectations, operating margins were down from a year ago, and EMCOR’s narrowed full-year guidance failed to impress investors.

Although eBay (EBAY) surpassed third-quarter revenue and adjusted profit estimates, its guidance for the critical holiday quarter came in below expectations, and its shares slid 15.9%. The e-commerce company noted decelerating growth in the volume of goods imported into the U.S. from key markets following the removal of the de minimis exemption.

Shares of logistics company C.H. Robinson Worldwide (CHRW) motored 19.7% higher, logging the S&P 500’s top performance Thursday. The freight forwarder has integrated AI to automate various processes, from providing quotes for shipping services to tracking shipments. AI-driven efficiency contributed to a significant year-over-year decline in operating expenses, while C.H. Robinson’s employee headcount is down more than 10% from a year ago.

Medical and pharmaceutical distributor Cardinal Health (CAH) beat sales and adjusted profit estimates for its fiscal first quarter of 2026 and raised its full-year forecasts. The company benefited from strong demand for high-margin specialty medicines and branded drugs. Its shares soared 15.4%.

Moderna (MRNA) shares surged 13.9% following reports that the vaccine maker has held talks with a large pharmaceutical company about a potential major partnership or buyout agreement. The biotech firm has faced pressure as sales taper off for its COVID-19 vaccines. No details have emerged about the nature or scope of a possible deal.