Baidu Slumps as AI-Powered Revenue Fails to Offset Legacy Business Decline; Home Depot & Amer Sports Surge on Earnings Beats

Mumbai, Aug 19: A flood of corporate earnings, blockbuster mergers, and billion-dollar contracts drove sharp divergence in US-listed stocks today, with Chinese tech giant Baidu Inc (NASDAQ: BIDU) plunging as much as 9% in pre-market trading after reporting a 4% year-over-year revenue decline, while Home Depot (NYSE: HD) and Amer Sports (NYSE: AS) surged on robust quarterly results. Meanwhile, a $105 billion Nvidia-backed data centre guarantee for OpenAI, a $1.1 billion tech acquisition by TTM Technologies, and a wave of defence and energy contracts reshaped sectoral dynamics. 

Baidu Misses as AI Cloud Strength Overshadowed by Legacy Weakness 

Baidu Inc (NASDAQ: BIDU) reported second-quarter revenue of RMB31.3 billion ($4.62 billion), down 4% year-over-year and 2% sequentially, missing market expectations. The company posted net income attributable to Baidu of RMB2.3 billion ($342 million), with diluted earnings per ADS of RMB5.74 ($0.85). On a non-GAAP basis, net income was RMB2.6 billion ($379 million) or $1.06 per ADS. 

The results revealed a stark contrast between Baidu’s legacy and AI-powered businesses. Revenue from Baidu Core AI-powered Business reached RMB12.5 billion, accounting for 50% of Baidu General Business revenue. AI Cloud Infra revenue jumped 50% year-over-year to RMB7.3 billion, with GPU Cloud revenue soaring 283% year-over-year. However, this was offset by a 23% decline in Legacy Business revenue to RMB10.4 billion and a 19% drop in Online Marketing Services revenue to RMB13.1 billion. 

CEO Robin Li noted that while “online marketing business remains under pressure, the growing momentum in our core AI-powered Business reaffirms Baidu’s transition from an internet-centric company to an AI-first company”. CFO Haijian He highlighted that operating cash flow remained positive for the fourth consecutive quarter at RMB3.4 billion. Baidu shares were trading at $90.54, down 13.04% during the afternoon session. The shares traded between a low and high of $90.11 and $97.44 so far during the session. 

Home Depot Sales Rise 5.7% to $47.9 Billion as Broad-Based Demand Drives Earnings Beat 

Home Depot Inc (NYSE: HD) reported second-quarter fiscal 2026 sales of $47.9 billion, up 5.7% year-over-year and above market expectations. Total comparable sales increased 1.7%, while comparable sales in the US rose 1.3%. Adjusted diluted earnings per share increased 5.1% to $4.92, beating analyst estimates by $0.19. 

The retailer recorded broad-based demand during the quarter, with 13 of its 16 merchandising departments reporting positive comparable sales. Professional customers outperformed DIY shoppers, while online comparable sales increased 11%, marking the fifth consecutive quarter of double-digit growth. 

CFO Richard McPhail said the results reflected “broad-based demand and execution by the company’s teams”. 

Gross margin expanded approximately 25 basis points to 33.7%, including a $685 million benefit from tariff refunds. Home Depot reaffirmed its full-year outlook, expecting comparable sales to range from flat to up 2% and total sales growth of approximately 2.5%-4.5%. Following the results, Home Depot shares rose 1.52% to $343.00. 

Amer Sports Revenue Jumps 32%; Pony AI Revenue Surges 68.8% 

Home Depot Inc (NYSE: HD) reported second-quarter fiscal 2026 sales of $47.9 billion, up 5.7% year-over-year, while comparable sales increased 1.7% and US comparable sales rose 1.3%. Adjusted diluted EPS climbed 5.1% to $4.92, beating estimates by $0.19. Thirteen of 16 merchandising departments recorded positive comparable sales, while online comparable sales increased 11% for a fifth consecutive quarter. Gross margin expanded 25 basis points to 33.7%, helped by $685 million in tariff refunds. The company reaffirmed its full-year outlook. Home Depot shares rose 1.52% to $343.00. 

Amer Sports Inc (NYSE: AS) reported second-quarter revenue of $1.633 billion, up 32% year-over-year, driven by 32% growth in Technical Apparel, 37% growth in Outdoor Performance and 24% growth in Ball & Racquet. Gross margin expanded 710 basis points to 65.6%, while operating profit surged 339% to $192 million. The company raised its full-year 2026 revenue growth outlook to approximately 24% and operating margin guidance to 14.2%-14.5%. Shares rose 6.57% in pre-market trading to $34.71 before closing at $32.57, down 0.91%. 

Pony AI Inc (NASDAQ: PONY) reported second-quarter revenue of $36.2 million, up 68.8% year-over-year, as Robotaxi revenue surged 691.2% to $12.1 million. Its Robotaxi fleet expanded to 1,975 vehicles, while net loss narrowed 14.9% to $45.4 million. Pony AI shares fell 1.97% to $7.98. 

ReNew Energy Income Rises, VNET Revenue Gains 14.2%; iQIYI Loss Widens to RMB287.5 Million 

ReNew Energy Global Plc (NASDAQ: RNW) reported first-quarter FY27 total income of INR47,864 million ($506 million), up from INR41,182 million, while net profit increased to INR5,953 million from INR5,131 million. Adjusted EBITDA rose to INR30,392 million from INR27,220 million. Commissioned capacity grew 17% year-over-year to approximately 13.1 GW, with its total portfolio reaching 20.5 GW. The company maintained FY27 Adjusted EBITDA guidance of INR103-109 billion. Shares were trading at $6.82, up 0.15% during the session. 

VNET Group Inc (NASDAQ: VNET) reported second-quarter revenue of RMB2.78 billion ($409.5 million), up 14.2% year-over-year, driven by a 29.3% increase in wholesale IDC revenue to RMB1.10 billion. Adjusted EBITDA climbed 25.4% to RMB918.3 million, while wholesale capacity increased 49.4% to 1,007 MW. Shares rose 4.21% to $7.92. 

iQIYI Inc (NASDAQ: IQ) reported second-quarter revenue of RMB6.29 billion ($926.6 million), down 5% year-over-year, while net loss widened to RMB287.5 million from RMB133.7 million. Content distribution revenue increased 56% to RMB681.5 million, but operating loss expanded to RMB104.8 million.  iQIYI shares fell 1.48% to $1.33 during the session. 

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Einride Targets 60%-73% H2 Growth, Hesai Posts 5th Profitable Quarter, Prenetics Revenue Jumps 288%, Klarna Revenue Climbs 27% 

Einride AB (NASDAQ: ENRD) reported first-half 2026 revenue of SEK273 million ($27 million), up 26% year-over-year on a constant-currency basis, and expects second-half growth to accelerate to 60%-73%. The company secured a deployment of 75 electric heavy-duty trucks with Amazon and subsequently partnered with Tesla to deploy 500 Tesla Semi trucks on its Saga AI platform. Einride is targeting cash-flow breakeven in 2028 with approximately 1,500-2,000 trucks in operation. Net loss was SEK1.12 billion, primarily due to non-cash charges. Einride shares were trading at $6.16, up 0.33%. 

Hesai Group (NASDAQ: HSAI) reported second-quarter revenue of RMB860.8 million ($126.9 million), up 21.9% year-over-year, while lidar shipments increased 78.4% to 628,275 units. Net income rose 60% to RMB70.6 million, marking its fifth consecutive quarter of GAAP profitability. Hesai raised 2026 Strategic Growth Initiatives revenue guidance to RMB200-300 million. Shares were trading at $18.07, down 0.77%. 

Prenetics Global Ltd (NASDAQ: PRE) reported second-quarter revenue of $46.5 million, up approximately 288% year-over-year, driven by IM8 revenue of $45 million, up 359%. The company achieved its first positive adjusted free cash flow in July and initiated FY2027 guidance of $400 million-plus in IM8 revenue. Shares fell 1.92% to $19.37 after revenue missed estimates. 

Klarna Group plc (NYSE: KLAR) reported second-quarter revenue of SEK1.042 billion ($1.04 billion), up 27% year-over-year, beating expectations, while diluted EPS of $0.01 also exceeded estimates. However, the company cut its full-year GMV and revenue guidance. Klarna shares fell 19.48% to $15.71 in pre-market trading. 

UCloudlink Revenue Falls 5.9%, Shares Decline; Airports Revenue Rises 8.2% 

UCLOUDLINK GROUP INC (NASDAQ: UCL) reported second-quarter revenue of $18.2 million, down 5.9% year-over-year, while gross profit declined 10.4% to $9.2 million. The company posted a $3.0 million net loss, compared with net income of $0.7 million a year earlier, citing macroeconomic and geopolitical headwinds and higher memory chip costs. Despite this, GlocalMe IoT daily active users surged 277.3%. UCloudlink lowered its 2026 revenue guidance to $75-$85 million from $85-$100 million. Shares fell 6.85% to $0.68. 

Corporación América Airports S.A. (NYSE: CAAP) reported second-quarter consolidated revenue, excluding IFRIC12, of $470.7 million, up 8.2% year-over-year, supported by 13.2% growth in commercial revenue and 3.7% growth in aeronautical revenue. However, Adjusted EBITDA declined 4.5% to $160.3 million, with margin contracting 450 basis points to 34.1%. Operating income fell to $105.5 million from $117.3 million. The company ended the quarter with $692.5 million in cash and net debt to LTM Adjusted EBITDA of 0.5x. Corporacion America Airports shares fell 1.92% to $24.01. 

TTM Technologies to Buy Epiq for $1.1 Billion, Goldman Sachs to Acquire LCN for $410 Million 

TTM Technologies Inc (NASDAQ: TTMI) agreed to acquire EPIQ Design Solutions LLC for approximately $1.1 billion in cash. The deal, financed by JPMorgan, Bank of America and Barclays, is expected to be immediately accretive to adjusted EBITDA margin and accretive to non-GAAP diluted EPS in 2028. TTM expects net leverage of 2.3x at closing, declining to 1.5x-1.7x within 12-18 months. TTM shares fell 10.61% to $126.03. 

Goldman Sachs Group Inc (NYSE: GS) agreed to acquire commercial real estate investor LCN Capital Partners for up to $410 million, including approximately $260 million upfront and up to $150 million tied to performance targets. About 80% of the consideration will be paid in stock. The transaction is expected to close by the end of 2026 and follows Goldman’s agreement to acquire Neos Investments for up to $2.25 billion. 

Meanwhile, Francisco Partners agreed to acquire Weave Communications Inc (NYSE: WEAV) for approximately $650 million, with stockholders receiving $7.40 per share in cash, a premium of about 34% to Weave’s August 17 closing price. The AI-powered healthcare platform serves more than 40,000 locations. The deal is expected to close in the fourth quarter of 2026, subject to approvals. Weave shares surged 31.83% to $7.29. 

UHS Completes $835 Million Talkspace Deal, TruGolf Shares Jump on Polymath Acquisition; TIC Solutions Adds $90 Million Revenue 

Universal Health Services Inc (NYSE: UHS) completed its acquisition of Talkspace Inc (NASDAQ: TALK) for approximately $835 million, or $5.25 per share, in an all-cash transaction funded through its revolving credit facility. Talkspace adds around 6,000 licensed therapists and psychiatrists and access to more than 200 million individuals through health plans, employers and other channels. UHS expects the deal to be slightly accretive to adjusted EPS within the first 12 months, excluding one-time costs. 

TruGolf Holdings Inc (NASDAQ: TRUG) agreed to acquire Canadian blockchain company Polymath Research Inc, with Polymath shareholders receiving TruGolf Class A shares equivalent to approximately 19.9% of outstanding shares, plus additional Series C preferred stock. Polymath generated $4.2 million in 2025 revenue and holds $21 million in assets. TruGolf will also raise $3 million at closing. TruGolf shares surged 58.84% to $1.54. 

TIC Solutions Inc (NYSE: TIC) completed acquisitions of we-do-IT, GeoVerra Holdings and Core Group, adding approximately $90 million in combined annualised revenue. The acquisitions expand TIC’s operations into Canada and Europe, covering data management, surveying, geomatics and building-system commissioning services. The transactions were funded with cash on hand. TIC Solutions shares fell 2.44% to $9.61. 

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Nvidia Guarantees Up to $105 Billion for OpenAI Data Centre, Haemonetics Shares Surge 15.2%; NANO Nuclear Signs HALEU Pact 

Nvidia Corp (NASDAQ: NVDA) agreed to provide a guarantee of up to $105 billion to support OpenAI’s lease of a large Ohio data centre being developed by SB Energy, while Nvidia will invest $1.5 billion in the company. Nvidia will be the facility’s exclusive chip provider. The site is expected to reach 8 GW of capacity, with the first 800 MW targeted for 2028, under a 20-year lease. CEO Jensen Huang said the project could contribute up to $200 billion in Nvidia revenue, while the company could generate $600 billion from OpenAI by 2030. 

NANO Nuclear Energy Inc (NASDAQ: NNE) and Quadrant Nuclear Industries signed a non-binding MoU covering potential future HALEU fuel supply and long-term offtake from QNI’s planned Vanguard facility in Idaho. The facility is designed to produce up to 18 metric tons of HALEU annually at full capacity. NANO Nuclear shares fell 0.36% to $19.59. 

Haemonetics Corp (NYSE: HAE) signed a non-exclusive supply agreement with CSL Plasma allowing the use of its NexSys PCS devices with Persona PLUS technology and related disposables at US plasma collection centres. The agreement carries no minimum purchase commitments. Haemonetics shares surged 15.2% to $104.01. 

Xos Shares Surge 102% on US Air Force Contract, Rocket Lab Joins $981 Million Space Force Programme 

Xos Inc (NASDAQ: XOS) won a prototype agreement from the US Air Force to develop a deployable mobile charging system for electrified support equipment and vehicles. Xos shares surged 102.15% to $4.225. 

Rocket Lab Corp (NASDAQ: RKLB) was added to the US Space Force’s NITE-STAR contract, which has a ceiling value of $981 million. Rocket Lab can now compete for task orders covering satellite development, space software, engineering and mission operations. Shares rose 2.28% to $82.08. 

Targa Resources Corp (NYSE: TRGP) signed new 20-year agreements with ExxonMobil covering gathering, processing and downstream services supporting ExxonMobil’s Permian Basin development. Targa shares rose 0.78% to $277.94, after gaining more than 7% intraday. 

Cummins Inc (NYSE: CMI) announced that its Power Generation business will supply battery energy storage systems for a large US data centre project, marking its largest BESS deployment to date. The systems feature 5MWh nominal capacity, lithium iron phosphate batteries and liquid cooling. Cummins shares fell 0.25% to $639.56. 

Karman Line Raises $200 Million in SPAC IPO, NorthStrive Prices $100 Million Offering on Nasdaq 

Karman Line Acquisition Corp (NASDAQ: XTERU) priced its IPO of 20 million units at $10 each, raising $200 million. The units began trading on Nasdaq on August 18 under XTERU, with each unit comprising one Class A ordinary share and half a redeemable warrant. Each whole warrant allows investors to purchase a Class A share for $11.50. Karman Line plans to pursue a business combination focused on space-based infrastructure, particularly the aerospace and defence sector. The offering is expected to close on August 19, 2026. 

NorthStrive Acquisition Corp I (NASDAQ: NSAIU) priced its IPO of 10 million units at $10 each, raising $100 million. Trading also began on Nasdaq on August 18 under NSAIU. Each unit includes one Class A ordinary share, one redeemable warrant exercisable at $11.50, and one right to receive one-fourth of a Class A ordinary share upon completion of a business combination. NorthStrive is targeting businesses in manufacturing and high-growth markets, including aerospace, defence and critical supply chains. Its offering is also expected to close on August 19, 2026. 

Gray Media Plans $750 Million Debt Offering, GreenPower Raises $1.43 Million and Dermata Secures $3.4 Million 

Gray Media Inc (NYSE: GTN) plans to offer up to $750 million of senior secured first-lien notes due 2034. Proceeds will be used to redeem part of its outstanding 10.500% notes due 2029, repay revolving credit facility borrowings and cover related expenses. Gray Media shares fell 4.60% to $4.98. 

GreenPower Motor Company Inc (NASDAQ: GP) issued the fourth tranche of 1,500 Series A Convertible Preferred Shares, raising $1.425 million in gross proceeds through a private placement. Each preferred share is convertible into common stock based on a formula involving 105% of stated value and 125% of the prior day’s closing share price. GreenPower shares fell 9.89% to $1.64. 

Dermata Therapeutics Inc (NASDAQ: DRMA) entered agreements for a private placement expected to raise approximately $3.4 million in gross proceeds. The offering includes 2,293,608 common shares or pre-funded warrants, along with Series E and Series F warrants for the same number of shares, priced at $1.46 per share. Fully exercised warrants could generate another $6.7 million. Company insiders are participating. Dermata shares closed at $1.46, unchanged. 

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Vivmark Residential Begins Trading After $51 Billion Merger, Almonty Approves $300 Million Buyback; York Water Extends Dividend Record 

Vivmark Residential (NYSE: VMRK) began trading on the New York Stock Exchange on August 18, 2026, following the completion of the merger of equals between AvalonBay Communities and Equity Residential. The combined company has an equity market capitalisation of approximately $51 billion and enterprise value of about $70 billion, with more than 184,000 rental apartments and over 11,100 units under construction. The company expects an initial annualised dividend of $2.81 per share. 

Almonty Industries Inc (NASDAQ: ALM) approved a $300 million share repurchase programme covering up to 14.4 million common shares, or approximately 5% of shares outstanding. The programme will run from August 24, 2026, through August 24, 2029. Chairman Lewis Black said the board believes the company’s share price does not reflect the underlying value of its business and assets. Almonty shares rose 8.42% to $16.36. 

The York Water Company (NASDAQ: YORW) declared a quarterly dividend of $0.2280 per share, payable October 15, marking its 623rd consecutive dividend. The company has maintained dividend payments for more than 210 years, representing what it describes as the longest such record in the US. Shares rose 0.75% to $33.06. 

CBL International Ltd (NASDAQ: BANL) reported first-half 2026 revenue of $395.6 million, up 49.2% year-over-year, while gross profit surged 140.5% to $6.53 million. Net income reached approximately $1.50 million, compared with a prior-year loss. The company also declared a $0.10 per-share special dividend, payable September 18. Shares fell 5.31% to $10.35. 

Amylyx Shares Surge 47.71% on Phase 3 Success, Duos Jumps 12.84% on Earnings Beat; Duolingo Gains 2.01% 

Amylyx Pharmaceuticals Inc (NASDAQ: AMLX) announced topline results from its LUCIDITY Phase 3 trial, which met its primary endpoint. The positive clinical results triggered a sharp rise in the company’s shares, which surged 47.71% to $31.66. 

Duos Technologies Group Inc (NASDAQ: DUOT) reported stronger-than-expected second-quarter results. Earnings came in at $1.37 per share, more than double the analyst consensus estimate of $0.66, while quarterly sales reached $6.175 million, exceeding the $4.900 million consensus estimate. The results drove a strong market reaction, with Duos shares jumping 12.84% to $10.28. 

Trulieve Cannabis Corp (NYSE: TRLV) rang the New York Stock Exchange Closing Bell on August 18 to celebrate its NYSE listing on June 10. The company is the first US cannabis company listed on the NYSE and the largest medical cannabis operator in the US. Trulieve operates 207 medical dispensaries, employs more than 5,000 people and has approximately 3.5 million square feet of cultivation and production capacity. Shares fell 1.87% to $9.47. 

Duolingo Inc (NASDAQ: DUOL) received an upgrade from DA Davidson, which raised its rating from Neutral to Buy and increased its price target from $130 to $160. The revised view supported the stock during the session, with Duolingo shares rising 2.01% to $130.16. 

Today’s session highlighted the divergent performance between companies successfully pivoting to AI and those still reliant on legacy business models, with Baidu’s AI-driven growth failing to offset its core weakness. Merger arbitrage opportunities emerged in the tech and healthcare sectors, with significant premiums offered in the Weave Communications and Talkspace deals. Defence and energy infrastructure contracts provided substantial catalysts for smaller cap names like Xos and Rocket Lab, while earnings beats from Home Depot and Amer Sports underscored the resilience of consumer-facing businesses despite macroeconomic pressures. 

Source 

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