Friday's Stock Market Highlights: Reddit (RDDT), Applied Materials (AMAT), and Nu Holdings (NU) in Focus

Key Highlights

Table of Contents

Reddit is set to become an S&P 500 component on August 18, taking the place of AvalonBay Communities
Applied Materials shares declined approximately 5% even after surpassing earnings and sales projections
Sandisk climbed more than 4% following J.P. Morgan’s resumption of coverage with an Overweight stance
Nu Holdings rallied 9% following a report showing 56% revenue expansion compared to the prior year
Globant plummeted 13% after disappointing earnings results and a downward revision to revenue guidance

The most significant development in Friday’s trading session on August 14 was Reddit’s confirmation as an incoming S&P 500 member. The popular social platform will officially become part of the prestigious index prior to the market opening on August 18.

Reddit, Inc., RDDT

The company will take the spot currently occupied by AvalonBay Communities, as the latter undergoes acquisition by Equity Residential. Following the merger’s completion, the newly formed entity will maintain its S&P 500 membership operating as Vivmark Residential.

Reddit’s stock skyrocketed 12% following the announcement. Index inclusion typically creates substantial buying pressure as passive funds tracking the S&P 500 must add the new component to their portfolios.

Applied Materials Slides Despite Exceeding Forecasts

Applied Materials delivered impressive third-quarter performance metrics yet experienced a roughly 5% decline in share price. The semiconductor equipment maker posted revenue of $9.12 billion, representing a 25% year-over-year increase and surpassing analyst projections of $9.02 billion.

The company’s adjusted earnings reached $3.50 per share, exceeding the consensus forecast of $3.42. Forward-looking guidance for the fourth quarter also came in above expectations, with projected revenue centered at $10.25 billion compared to Wall Street’s $9.55 billion estimate.

Leadership expressed increased confidence in semiconductor systems revenue for 2026, citing artificial intelligence demand and improved long-term visibility extending into 2027.

However, market participants chose to take profits despite the positive report. With shares already up nearly 98% year-to-date, some market watchers speculate that investors were anticipating an even more impressive performance. Additionally, the company reported a $220 million unrealized loss on investments during the reporting period.

In related news, Sandisk shares advanced over 4% during premarket hours following J.P. Morgan’s decision to reinitiate coverage with an Overweight recommendation and $2,250 price objective.

Nu Holdings Delivers Impressive Results

Nu Holdings, Brazil’s leading digital banking platform, surged 9% after unveiling solid second-quarter performance. The company generated revenue of $5.88 billion, marking a 56% year-over-year increase and significantly exceeding the consensus projection of $5.48 billion.

GAAP earnings reached $0.22 per share, beating analyst estimates of $0.19. Net interest income demonstrated robust growth of 65% compared to the previous year, reaching $3.69 billion.

The fintech giant’s customer base expanded by 4 million during the three-month period, pushing total users to 139 million. Average monthly revenue per active customer improved substantially to $17.10, up from $12.50 in the year-ago quarter.

Meanwhile, Globant experienced a challenging session, falling 13% after the digital transformation specialist reported adjusted profits below expectations and issued cautionary guidance regarding future revenue performance.

The company’s updated full-year 2026 revenue forecast of $2.428 billion to $2.462 billion suggests potential outcomes ranging from a 1.1% contraction to minimal growth of just 0.3%.

Artificial intelligence-focused equities showed strength across the board. Intel, Marvell, and Micron each registered premarket gains ranging from 1% to 2%.

Defense and drone manufacturers also experienced upward momentum following the Trump administration’s announcement of new tariffs targeting drone imports. Unusual Machines, Ondas, Kratos, and AeroVironment all posted advances.

Broader market futures remained relatively stable as market participants digested inflation data, particularly Thursday’s wholesale inflation figures that came in below forecasts.

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