The S&P 500 Index and VOO ETF dropped sharply on Friday as investors reacted to the latest earnings by top companies like Broadcast and Oracle, which sent jitters on the booming artificial intelligence (AI) industry. The index pulled back to $6,625, down from the year-to-date high of $6,922.
This article explores some of the top S&P 500 stocks to watch this week.
ServiceNow to acquire Armis
One of the top S&P 500 and VOO ETF stocks to watch this week is ServiceNow, a technology company valued at nearly $180 billion.
The NOW stock price has crashed by ~25% this year as concerns about its AI performance concerns. Therefore, the company will be in the spotlight after a report showed that it was in talks to acquire Armis, a cybersecurity company, in a $7 billion deal.
It will be its biggest acquisition so far and help ServiceNow compete with other top companies like Palo Alto Networks, Fortinet, and CrowdStrike.
A recent report suggested that Armis had achieved $300 million in annual recurring revenue, up by $100 million from last year. It was eying a public listing, potentially in 2026.
The buyout comes a few months after ServiceNow bought Moveworks in a $2.85 billion deal. This deal helped it to diversify its business to AI agents that can work without meaningful human supervision.
Micron (MU)
Micron, one of the best-performing companies in the S&P 500 Index this year, will be another top company to watch as it publishes its financial results, which will shed more light on the AI industry.
Micron stock price has already jumped by 137% this year, bringing its market capitalization to over $271 billion. Other competing companies like Seagate and Western Digital are some of the best-performing firms in the index.
The upcoming results come two weeks after the company announced that it would stop selling products made for retail clients as it focuses on the booming data center segments. That decision led to accusations that it had abandoned gamers.
Analysts expect that the upcoming results to show that the revenue rose by 47% to $12.8 billion, while its earnings-per-share rose from $1.79 last year to $3.9 in the last quarter.
The annual revenue guidance is expected to come in at $56 billion, a 55% increase from the same period last year.
READ MORE: Broadcom stock plunges nearly 9%: what AVGO’s sell-off signals for tech investors
Nike (NKE)
Nike, a top player in the S&P 500 Index and VOO ETF, will be another top company to watch this week as it releases its numbers. These numbers come as the stock has crashed by 60% from its highest level during the pandemic.
Nike stock price has remained under pressure this year as the dropped by over 3%, shedding millions of dollars in value, even as the S&P 500 Index rose to a record high.
Data compiled by Yahoo Finance shows that Nike’s revenue dropped by 1.19% YoY in the last quarter to $12.21 billion. Its guidance for the next quarter will be $11.42 billion, a 1.02% increase from the same period last year.
The company’s earnings per share is expected to come in at 38 cents, down from 78 cents in the same period last year.
These numbers come as that company’s management continues its turnaround efforts, which are focused on innovation and changing how it sells its products. After ignoring its whole sales under the previous management, the company is now working to improve relationships with them.
The other top S&P 5OO Index stocks to watch are Warner Bros. Discovery, FedEx, Oracle, Broadcom, and PayChex.
READ MORE: Oracle stock tank after reported delays to OpenAI data-center expansion
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