Qualcomm's Downgraded Forecast Causes Stock Plunge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy ORLY?
Source: CNBC
- Qualcomm's Earnings Downgrade: Qualcomm's forecast was downgraded due to a global memory shortage, expecting adjusted earnings between $2.45 and $2.65 per share and revenue of $10.2 billion to $11 billion, significantly below analysts' expectations of $11.11 billion, resulting in an over 8% stock drop.
- Alphabet's Strong Earnings: Alphabet reported fourth-quarter earnings that exceeded expectations, with strong performance in revenue and Google Cloud, while YouTube ad revenue was $11.38 billion, slightly below the anticipated $11.84 billion, leading to a 1% stock increase.
- Boot Barn Raises Guidance: Boot Barn raised its full-year earnings guidance to $7.25 to $7.35 per share, surpassing the consensus estimate of $7.31, which contributed to a 5% increase in its stock price.
- Align Technology's Impressive Results: Align Technology reported fourth-quarter earnings of $3.29 per share, exceeding the LSEG consensus estimate of $2.97, with revenue of $1.05 billion also surpassing expectations, resulting in a stock surge of over 11%.
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Analyst Views on ORLY
Wall Street analysts forecast ORLY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 95.030
Low
91.00
Averages
110.75
High
125.00
Current: 95.030
Low
91.00
Averages
110.75
High
125.00
About ORLY
O’Reilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States (U.S.), selling its products to both do-it-yourself (DIY) and professional service provider customers. Its stores carry various product lines, including new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting, oil, and wiper blades and accessories, such as floor mats, seat covers, and truck accessories. Its stores offer services and programs, including battery diagnostic testing; battery, wiper, and bulb replacement; a loaner tool program; custom hydraulic hoses, drum and rotor resurfacing, electrical and module testing, used oil, oil filter, and battery recycling; and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Genuine Parts Company's Earnings Report: Genuine Parts Company (GPC) announced a significant drop in its fourth-quarter earnings, missing analyst estimates and resulting in a 14.5% decline in share price, which raised concerns among investors.
Market Reaction and Future Outlook: The market's negative reaction to GPC's earnings report reflects short-term thinking, overshadowing the potential long-term value from the company's planned separation into two distinct entities, which is expected to occur in early 2027.
Investment Opportunities: Despite the current market turmoil, GPC's dividend yield remains attractive, and the separation strategy may present compelling investment opportunities for those willing to wait for the long-term benefits of the restructuring.
See More
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- Remarkable Investment Returns: Since its IPO in 1993, O'Reilly's stock has returned an astonishing 58,000%, with shares tripling in the last five years, highlighting its robust performance in the aftermarket auto parts sector.
- Sustained Growth Momentum: In 2025, O'Reilly reported a same-store sales growth of 4.7%, marking the 33rd consecutive year of positive growth, reflecting ongoing demand for auto parts despite economic fluctuations.
- Market Valuation Analysis: O'Reilly's current price-to-earnings (P/E) ratio stands at 31.8, which is 26% higher than the S&P 500, indicating that while value investors may seek lower valuations, the high-quality nature of the business justifies its premium pricing.
See More
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- Operational Restructuring: CEO Shane O'Kelly's comprehensive restructuring includes closing over 700 locations and opening new stores in market-leading areas, aimed at improving inventory management efficiency and same-day delivery capabilities, thereby enhancing the company's competitive edge.
- Market Outlook: Despite weak demand in the auto parts market, Advance Auto Parts could potentially report improvements in profit margins and positive cash flow guidance in its upcoming earnings, which, if achieved, could positively impact the stock price.
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