Stock Market: 4 Stocks With Notable Volatility In Their Share Price After Earnings

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4 stocks that exhibited notable volatility in their share price after earnings:
 

Meta Platforms (META)

  • Reported Q3 2025 revenue of $51.24 billion, up 26% YoY, driven by strong ad revenue growth fueled by AI-enhanced advertising and increased user engagement across Facebook, Instagram, and WhatsApp.
  • GAAP net income was heavily impacted by a one-time $15.9 billion tax charge related to new US corporate tax legislation, causing an 83% drop in headline net income to $2.71 billion.
  • Excluding this tax charge, non-GAAP earnings rose 19% to $18.64 billion, reaffirming solid operational strength.
  • The Reality Labs segment showed 74% revenue growth due to new AI-enhanced product traction.
  • Despite strong fundamentals, Meta shares dipped after earnings due to the large tax charge and increased AI spending, reflecting market skepticism about near-term profit impacts.

Microsoft (MSFT)

  • Reported Q3 2025 revenue of $70.1 billion, up 13% YoY, aided by cloud segment revenue growth of 20% ($42.4 billion).
  • Operating income increased 16%, and net income was up 18% to $25.8 billion.
  • Azure and AI-powered cloud services showed strong demand, but cloud revenue slightly missed analyst expectations, leading to some share price volatility.
  • Despite the miss, Microsoft highlighted AI business growth with an annual revenue run rate surpassing $13 billion, up 175% YoY.
  • Shares declined about 6% post-earnings, reflecting concerns about competition in cloud/AI markets and cautious guidance.
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Axon Enterprise (AXON)

  • Q3 2025 revenue reached $711 million, up 31% YoY, driven by 41% growth in software & services revenue.
  • Non-GAAP net income was $98 million; adjusted EBITDA margin maintained near 25%.
  • Expanded product ecosystem with recent acquisitions and strong customer adoption contributed to growth.
  • Despite strong growth, stock fell about 14% after forecasting weaker profits ahead, highlighting sensitivity to profit outlook even with revenue growth.
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Live Nation Entertainment (LYV)

  • Reported record Q3 2025 revenue of $8.5 billion, up 11% YoY, driven by surging global stadium activity and robust ticket sales.
  • Operating income jumped 24% YoY to $792.5 million.
  • Ticketing and sponsorship revenues both grew healthy double digits.
  • Despite record performance, shares declined over 6% after earnings as investors digested pressure on profit margins and forecasts.
  • CEO highlighted strong pipeline for 2026, indicating potential for continued momentum.
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Summary

Earnings season in November 2025 has featured a mix of strong revenue growth and some profit outlook caution, leading to volatility. Tech giants Meta and Microsoft showed robust AI-driven revenue growth but faced share price pressure on tax impacts and cloud competition fears. Axon Enterprise's shares dropped despite strong revenue growth due to weaker profit guidance. Live Nation's record sales and income were met with some volatility as margin concerns arose.

This reflects a broader market trend in which investors react swiftly to earnings surprises and outlooks, showing elevated sensitivity in a complex environment of AI investments, tax changes, and economic uncertainty.


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Disclosure: I have no position in any stock mentioned.

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