Ahead Of Quanta Services' And GE Vernova's Upcoming Earnings: Weeks Like This Are Why You Want To Own Quality (PWR; GEV)
Both stocks have been whacked.
Quanta, which reports on October 29th was down $6.01 (1.09%) to $546.43 today and is down 15.98% over the last three months. Here is the last year (up 32.31% over the longer period) of price action via TradingView:
The chart for GE Vernova which reports a day earlier, on the 28th, shows a similar pattern.
Down $12.42 (−1.50%) to $815.08 today, down 20.32% over three months and is up 40.52% for the last year:
And from Yahoo Finance October 23, a story that, though focused on a couple other power suppliers, illustrates the currents/cross-currents buffeting the group.
The AI sell-off is crushing stocks of companies leading the data center build-out
Two of the AI building boom's biggest suppliers just posted blowout quarters. Wall Street is dumping them anyway.
Bloom Energy (BE), whose fuel cells generate power on-site at data centers, said Thursday that sales jumped 138% last quarter and raised its full-year outlook to roughly 122% growth. Comfort Systems (FIX), which installs the cooling and electrical systems inside them, said its backlog nearly doubled to $17.8 billion.
Both stocks are falling hard for a second straight day. Credo (CRDO), which makes networking parts for data centers, is sliding with them.
Bloom Energy leads a second day of selling in AI data center suppliers after blowout quarters. ·Yahoo Finance AlphaSpace
"A company can deliver extraordinary numbers, but if investors aren't willing to reward those results, something isn't right," Steve Strazza of All Star Charts wrote Friday morning.
Bloom did give the bears something to chew on. Its cash flow turned negative in the quarter, and its margins aren't keeping pace with sales.
It's not just 2 stocks Since the S&P 500's (^IXIC) Oct. 6 record close, the companies building and equipping AI data centers are down a median 23%, according to Yahoo Finance calculations. That group includes heavyweights like Caterpillar (CAT), GE Vernova (GEV), Vertiv (VRT), and Eaton (ETN).
Power producers are down 14%. Nvidia (NVDA) is off 11%. The Big Tech companies writing the checks are down just 5%.
Yahoo Finance
In other words, the companies cashing the checks are falling harder than the ones writing them.
That's backward for a build-out whose biggest problem is supply. "The biggest constraint right now for the AI build-out is power," Jefferies' Aniket Shah told Yahoo Finance on Wednesday, pointing to public pushback against new data centers. Even Nvidia CEO Jensen Huang said builders have to be good neighbors....
