3M (MMM): Mixed Quarter, Raised Outlook
3M (MMM) posted a mixed quarter, and investors focused on the positives and a deeper tie with Amazon (AMZN). Shares traded with an up arrow.
Adjusted earnings came in at $2.50 per share, beating the $2.38 Street estimate by 12 cents. Revenue was $6.58 billion, a slight miss against about $6.6 billion expected. Profit beat, sales fell short, which raises the question of how much of the gain came from efficiency rather than demand.
The company raised its full-year outlook for the second quarter in a row. It lifted the adjusted earnings forecast to $9.10-$9.15 a share, up from $8.80-$8.95 and above what analysts expected. Sales guidance stayed the same: adjusted total sales growth above 4.5%, including organic growth above 3.5%. The CEO pointed to better productivity and a stronger product pipeline.
The Amazon (AMZN) deal added an AI angle. 3M announced an expanded relationship around optical connectivity and other data center products. Amazon received warrants, the right to buy about 3.2 million 3M shares at a set price. Most of those rights vest as Amazon buys products from 3M, tied to a $6 billion cumulative purchasing threshold. The threshold is a possible commercial milestone, not guaranteed orders, but investors liked it. The fiber optic connections carry data between server racks and help large data centers handle heavy computing workloads. For a large, old-school company with a big footprint in the market averages, lifting its third-quarter profit outlook counts as good news.
Apple (AAPL): Downgraded by Loop Capital
Apple (AAPL) dropped after Loop Capital cut it to hold from buy, moving to the sidelines. The price target was lowered to $330 from $370, about 4% below the prior close. The stock was around $342.
The downgrade followed new iPhone shipment data that weakened the outlook, with worries about delayed sales being harder to recover. Loop said September-to-December quarter iPhone shipment plans were reduced by 10%. Loop first saw the cuts as a supply chain problem tied to memory and processors, and expected Apple to recover much of those shipments during 2027. Now Loop doubts that catch-up will happen and worries iPhone revenue could fall short. Delayed shipments push revenue into a later quarter; shipments that never happen hit the sales outlook outright.
Loop also flagged higher memory costs as a possible headwind and a threat to Apple's gross margins. The pressure comes from two sides: margins and fewer iPhone shipments hitting revenue. Memory chip prices had to rise and did. The view is that there is less room for disappointment.
Akamai (AKAM): Upgraded by Raymond James
Akamai (AKAM) got an upgrade from Raymond James to strong buy from outperform, a bullish call. The firm kept its $170 price target, which implies large upside, since the stock sat a little above $86, just below $87. Shares showed some softness during the session after rising in the pre-market.
Raymond James sees the recent pullback as a long-term buying chance. Revenue from Anthropic and other inference cloud customers should support a recovery over the next 12 months. The cost of that growth is the open question: Akamai faces a $5.5 billion capital commitment tied to generating more than $11 billion in revenue from Anthropic. That figure is spending and expected revenue, not profit. Despite recent concerns on the stock, Raymond James views the pullback as an opportunity.
