I’m not immune to the sell-offs in the market and like any vested investor, nothing sucks more than waking up in the morning to see a stock I own go down by 20%. Unfortunately for me, I had to experience this at least 5 times this week as most of my holdings traded down significantly. Here are 5 stocks that all crashed after reporting earnings, and guess what, I hold a position in ALL of them. Here’s what happened and what I’m doing about it.
Disclaimer: I write without AI because I have the highest respect for your time and attention. In return, please excuse the occasional slang and lingo. I don’t have an A+ in English but I would like to think that I have at least a B in investing.
TLDR: The 5 Stocks that we will be going into are Google, AMD, Estee Lauder, Amazon and Disney
Stock #1: Alphabet/Google whatever [NASDAQ: GOOG]
Google reported earnings this week and with that, the stock sold off by almost 12% from its recent high of $350 to about $310 before trading up to where it is now at about $330. Not much of a bummer here but I was looking at google when it was flickering -10% and oh boy did it get me excited. Across the board, Google accounts for almost 20% of all my portfolios combined and for good reason. If you do not have Google in your portfolio or if you have a bear case, please tell me why. I sincerely want to know.
Why did Google Sell-off after earnings?
The main reason was because of much higher capital expenditure sitting at $175 billion to $185 billion on capital expenditures in 2026. This about double prior levels and unfortunately, much higher than what analysts and investors were expecting. Overall, such committments add pressure to free cash flow which then leads short-term voliatlity etc.
What am I doing with my Google Shares?
Nothing. There is literally nothing that I can do with Google. I can’t sell it as there is no legitimate reason to be bearish.
Stock #2: Advanced Micro Devices Inc [NASDAQ: AMD]
AMD is a little trickier. The pain is definitely felt here as I hold a sizable position in AMD. The stock fell by almost 30% from its recent high of $270 where it is currently stabilizing at $200. The gap between $180 and $200 is crucial. It represents the premium that investors have decided to pay for the stock based on its future potential. There is alot of hype priced into AMD so I would say that this sell-off was overdue. Its just that 20% in a day is really quite significant.
Why did AMD Sell-off after earnings?
I went through the earnings call and overall, I believe the key reason why was the revenue guidance.
“Revenue guidance: $9.8 billion ± $300 million, implying ~32 % year-over-year growth, but a ~5 % sequential decline from Q4.”
This guidance is not bad when you read it like this but investor expectations are high and AMD did not hit the mark this time around.
They could be playing the “under promise and over deliver” game but who knows? They have done it before.
What am I doing with my AMD Shares?
Nothing. I believe the best is yet to come for AMD. I believe that there are tailwinds ahead such as the possbility that AMD might beat Nividia in terms of quarterly revenue growth % this year.
Stock #3: Estee Lauder Companies Inc [NYSE: EL]
EL is in the same boat as AMD. About this time last year, EL was close to dead due to fears of inflation, lower discretionary spending, China … honestly, the same old bearish excuses that the media spins up all the time. The biggest problem with EL is that it is a turnaround play. Investors have been patient as the stock has nearly doubled since its 52-week lows but it is taking a little longer than expected. With patience wearing thin and guidance not exceeding investor expectations, the stock traded as low as 25% off its recent highs of $120 to as low as $90 before currently stabilising at $100.
There are headwinds ahead. I believe the full impact of Trump Tariffs is not fully reflected on their balance sheet. I also believe that discretionary spending will not recover in 2026 (duh, look at the state of the economy)
What am I doing with my EL Shares?
Nothing. I continue to believe that EL add a strong retail layer to my portfolio. While the forward PE of 50 remains high, I believe demand will normalize if not outperform in the years ahead. Definitely not a time to add yet which I think $80 ish would be a good area to consider.
Stock #4: Amazon.com Inc [NASDAQ: AMZN]
I’m holding it together as the stock is now falling before my very eyes as I write.
Amazon’s sell-off came in 2 steps. The first was yesterday which saw the stock fall by about 4-5% due to broader market implications. The bigger sell-off is happening now where the stock is trading at about 9% lower due to its earnings. I haven’t had the time to go through the earnings in depth but from what I’ve managed to put together, they are in the same boat as Google where,
Amazon has announced plans to invest $200bn (£147.7bn) in artificial intelligence (AI) and infrastructure, becoming the latest US tech giant to set out a sharp rise in spending.
It dwarfs the $125bn Amazon spent on AI last year, and appeared to rattle investors who sent the company’s shares down more than 11% in after-hours trading. – BBC News
What am I doing with my Amazon Shares?
Alright I took the bait. As of now I’ve added a small position of +10 shares to my Amazon position as I’ve been waiting a long time to add into Amazon. At $200, it trades at 20% off its recent all-time high and an area that I would consider to be a decent level of support.
Stock #5: Walt Disney Co [NYSE: DIS]
Disney is the wild card here.
I have a small position in Disney based on my thesis that their entertainment business will come back strong. They have gone astry for a long time producing movies which didn’t perform (all the lame a** C tier Marvel movies). However what made me buy back into the stock late last year was their marketing for the upcoming Avengers Doomsday. I’m well aware of the state of the companies such as their parks, experiences, streaming also all the drama they face with their talent/politics etc. but at the end of the day, I think they are doing a good job and I like what they do. I like how they know that Singaporeans are suckers for Disney so since we don’t have a Disneyland nearby, they decided to bring it to us via the Disney Cruise (even though it was delayed). Lately, I like how they are building up the hype for Avengers Doomsday despite it being another year away.
In terms of price, Disney went as low as 20% off their recent high of $125 to about $100. It is currently stabilizing at $110.
Why did Disney Sell-off after earnings?
Overall, I would point the blame back at guidance as management was not firm about the outlook for the year. EPS and FCF targets remained in line with expectations and overall just nothing spectacular for investors to look forward to. Disney was just an “okok” earnings for them.
What am I doing with my Disney Shares?
Nothing. Waiting till Avengers Doomsday to see if this stock will see its doom.
Overall, this has been a horrible earnings report for me. Apart from the ones I mentioned above, my other losses include CRM, Adobe and NVO.
Winners have been few such as META which is unfortunately also selling off as I speak (write). The overall notion of a SaaSpocalyse due to the latest development in Claude seems abit overblown to me. Investors think that businesses who use CRM will suddenly terminate their subscription and get an intern in to vibe-code their entire stack before CNY. 🤯🤯🤯🤯
We’ll be keeping an eye on the situation, join our Telegram for the latest analysis and insights! https://t.me/realDrWealth
