My top 10 things to watch Tuesday, Nov. 4, Election Day 1. Palantir’s quarterly beat and guidance raise were not good enough. Or, maybe, it’s the paradox of an amazing company with a big market cap ahead of where most people think it deserves it. Shares of the software maker sank more than 8%. Besides a strong business, Palantir has a ridiculously high Rule of 40. That’s when revenue growth and profit margin together should add up to 40%. Instead, Palantir saw revenue increase by 63% and profit margin rise by 51% during the quarter for a Rule of 40 score of 114%. 2. Eaton shares fell more than 4.5% this morning after the Club name reported a mixed third quarter. An earnings per share beat and a revenue miss were accompanied by a current quarter EPS guidance range at the midpoint that fell short of expectations. Eaton’s biggest segment, Electrical Americas, also missed on revenue. Eaton makes all kinds of power management systems for data centers and other energy-intensive operations. 3. Uber reported third-quarter earnings before interest, taxes, depreciation, and amortization that basically matched estimates. Revenue beat. Shares, however, dropped more than 7%. The ride-hailing company issued a current quarter EBITDA guidance range that fell just short of expectations at the midpoint. 4. Yum! Brands delivered a solid third-quarter EPS beat and slightly better-than-expected revenue. Same-store sales grew 7% at Taco Bell and 3% at KFC — both beat estimates. The Pizza Hut chain saw comps decline 1%, though not as steep as expected. Management also said it would look at strategic options for Pizza Hut, which has struggled in recent years. 5. Starbucks announced the sale of a majority stake in its China business for $4 billion to Boyu Capital. Under the joint venture structure, the coffee chain will retain a 40% stake and maintain its rights to license its brand and intellectual property. Still, the news is a disappointment. We thought Starbucks China was worth more than this. Has management valuing the entire deal at $13 billion not stuck with anyone? Plus, China has been Starbucks’ best growth market. 6. The S & P 500 and Nasdaq were on track for lower opens after Palantir’s quarter fueled investor concerns about AI valuations. Other AI-related names were also weaker. Nvidia dropped 2%. This morning’s action follows a mixed Monday for the market. The S & P 500 and Nasdaq secured gains, while the Dow ended the day lower. 7. Mizuho raised its price target on Club holding Amazon to $315 from $310. Analysts cited higher valuation multiples on increased conviction after the tech company’s third-quarter earnings release. Today is not the day to talk about higher valuation multiples. 8. Club name Broadcom was named a top pick at Jefferies. Analysts also hiked the semiconductor stock’s price target to $480 from $415 and maintained their buy rating. Jefferies, in part, cited accelerating demand from hyperscalers for their call. 9. BTIG hiked its CrowdStrike price target to $640 from $489, and maintained the firm’s buy rating on shares. Analysts pointed to commentary from industry contacts that showed positive demand trends. The Club stock is trading slightly lower early this morning. 10. Wells Fargo lowered its Clorox price target to $117 from $125 following the firm’s earnings report. Citi also brought the stock down to $120 from $130, as well. I thought the quarter was terrible and impossible to understand due to hangovers within management’s transition to a new enterprise resource planning system. Sign up for my Top 10 Morning Thoughts on the Market email newsletter for free (See here for a full list of the stocks at Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
