Hot Stocks: META drops 25% on earnings; NOW, FIX surge; ALGN hits 52-week low
Alistair Berg


Stocks put in another mixed performance on Thursday as individual earnings stories vied for influence. Strong results from big names like McDonald's and Caterpillar helped the Dow finish nearly 200 points higher, while the S&P 500 and Nasdaq posted losses.
Meta Platforms (NASDAQ:META) was among the major contributors to the slide in the Nasdaq, as the Facebook parent lost a quarter of its value following its latest earnings report. Meanwhile, Align Technology (ALGN) represented another standout decliner, with weak financial figures driving the stock to a new 52-week low.
On the upside, ServiceNow (NOW) surged on a better-than-expected profit, while Comfort Systems (FIX) rode strong results to a new 52-week high.
Standout Gainer
Even with a mixed report and cautious forecast for subscription revenue, ServiceNow (NOW) received a rush of investor interest following its quarterly update, with the stock climbing by 13%.
The company exceeded expectations with its bottom-line result, although revenue growth of 21% failed to top analysts' consensus. NOW's operating margin came in above expectations.
Analysts responded positively to the results, with Morgan Stanley arguing that "NOW shares are positioned to perform more durably going forward."
Following the earnings report, NOW soared $49.26 to close at $415.67. With the advance, shares came further off a 52-week low of $337 reached earlier this month. The stock remains 34% lower for 2022 as a whole.
Standout Decliner
Meta Platforms (META) cratered nearly 25% following the release of weak earnings. The stock also suffered in the wake of a near-term sales warning.
The Facebook parent revealed a lower-than-expected quarterly profit, with revenues that slipped 4% from last year. The revenue total of $27.7B topped analysts' projections, but the social media giant saw its expenses spike 19%. That resulted in a 46% drop in operating income.
Commenting on its outlook, CEO Mark Zuckerberg pointed to "near-term challenges on revenue" and said the company would "focus on prioritization and efficiency" heading into 2023. He added that "the fundamentals are there for a return to stronger revenue growth."
Investors fled from the stock following the quarterly update, with shares dropping $31.88 to close at $97.94. META also reached an intraday 52-week low of $96.38. Overall, the stock has fallen 71% in 2022.
Notable New High
Better-than-expected quarterly results spurred Comfort Systems (FIX) to a new 52-week high, fueling an 8% rally on the session.
The provider of provides heating, ventilation and air conditioning services topped analysts' consensus on both its top and bottom lines. The firm's sales jumped 34% from last year to reach $1.12B. The company also raised its dividend by 7%.
Looking ahead, FIX CEO Brian Lane said: "We continue to anticipate strong revenue, earnings and cash flow in the coming quarters."
The strong results propelled FIX to an intraday 52-week high of $119.81. The stock moderated slightly before the close but still ended at $118.44, a gain of $8.76 on the day.
FIX slipped to a 52-week low of $74.14 in June but rallied off that level during the summer. The stock is now up about 60% from that low and higher by 21% for 2022 as a whole.
Notable New Low
The release of disappointing quarterly results sparked selling in Align Technology (ALGN). Shares plunged 18% to reach a new 52-week low. 
The dental products maker reported a quarterly profit that came in well below analysts' expectations. This came as revenue plunged almost 13% to $890M.
The company blamed macro uncertainty and unfavorable currency exchange for the disappointing results. "Underlying market dynamics, as well as the reactions to macroeconomic headwinds by central banks, governments and consumers, remain uncertain," the company's CFO told investors in a post-earnings conference call.
Dragged down by the results, ALGN dropped $40.11 to close at $181.53. During the session, the stock reached an intraday 52-week low of $176. The slide added to a longer-term retreat. Shares have fallen 72% since the end of 2021.

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