Applied Materials Stock Declines After Weak Q4 Forecast

Group 1 - Applied Materials reported fiscal third-quarter results that exceeded analyst estimates, but the stock is declining due to a lower-than-expected revenue forecast of $6.7 billion for the fiscal fourth quarter, compared to expectations of $7.3 billion [1] - The decline in stock price is exacerbated by a downgrade from BofA Global Research, which changed its rating from "buy" to "neutral" and reduced the price target from $190 to $180 [2] - Over the past 12 months, Applied Materials shares have decreased by 22.9%, and if current losses persist, it could mark the worst trading session since March 2020 [2] Group 2 - Despite the recent downturn, 24 out of 33 firms covering Applied Materials still rate it as "buy" or better, with a 12-month consensus target price of $196.85, indicating a 20.3% premium to current levels [3] - The stock's 10-day put/call volume ratio of 1.38 is higher than all other annual readings, indicating a significant increase in bearish sentiment among options traders [4] - Today's options activity shows a notable increase in trading volume, with 87,000 puts and 57,000 calls traded, which is 12 times the typical volume, highlighting heightened bearish activity [4]