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Why Did These 2 Growth Stocks Fall Tuesday Night?

By Dan Caplinger – Aug 3, 2021 at 6:09PM

Key Points

  • Stock markets moved higher on Tuesday.
  • But after-hours earnings reports sent some stocks downward.
  • Amgen and Match Group were two key stocks under pressure Tuesday evening.

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Find out whether investors are really spooked about these companies on a strong market day.

Tuesday proved once again how resilient the stock market can be. Despite losses to open the day, the market steadily improved throughout the day, and by the close, major market benchmarks were all up. The biggest gains came for the S&P 500 (^GSPC -0.03%), but the Dow Jones Industrial Average (^DJI 0.45%) wasn't far behind, and the Nasdaq Composite (^IXIC -0.52%) still managed a solid rise.


Percentage Change

Point Change




S&P 500



Nasdaq Composite



Data source: Yahoo! Finance.

Despite the upbeat mood in the market on Tuesday, after-hours earnings results brought sobering news for a couple of companies. Both Amgen (AMGN 0.12%) and Match Group (MTCH -2.07%) saw their shares move lower following their latest financial results. Below, we'll look at what happened with these companies and what the future might hold for them.

Amgen sees pandemic headwinds to last the rest of the year

Shares of Amgen participated in the rally during the regular session on Tuesday, climbing nearly 2%. However, the biotech giant's stock fell back about 1% in the after-hours session following its second-quarter financial report.

Amgen saw modest gains during the period. Revenue was higher by 5% compared to the second quarter of 2020, as higher demand for its products offset slightly lower prices. Adjusted earnings of $4.38 per share were up 4% year over year, as net income rose while share counts declined.

Researcher in lab looking through microscope.

Image source: Getty Images.

Amgen also remained confident in its guidance for 2021. The biotech sees revenue of between $25.8 billion and $26.6 billion, with adjusted earnings of $16 to $17 per share. Favorable pipeline developments could bolster Amgen's prospects as well.

However, what spooked investors somewhat was Amgen's update on the COVID-19 pandemic. Although the number of patient visits and lab test procedures has increased somewhat recently, they still remain well below pre-pandemic levels. Because fewer people are receiving medical diagnoses from doctors, Amgen isn't seeing as many patients starting treatment, and the company expects that headwind to persist in the second half of 2021. That might have a short-term impact, but it shouldn't hurt Amgen's long-term prospects.

A bad Match?

Elsewhere, shares of Match Group added insult to injury late Tuesday, with a 4% after-hours decline adding to the stock's nearly 2% drop in the regular session. The online dating company's second-quarter results failed to live up to expectations.

Match's numbers looked solid on their face but weren't able to sustain past momentum. Revenue was higher by 27% year over year, with direct revenue related to the Tinder app rising 26%. Earnings of $0.46 per share were up 28% from the year-ago period but came in below the $0.49 per share that most investors had expected to see.

Match Group has been looking forward to vaccinations reducing the negative impact of the pandemic on its business, and it reported some favorable trends in that regard. However, shareholders are nervous that the rise of the delta variant could prove to be a roadblock in that recovery and potentially weigh on short-term growth in the near future.

Even with the after-hours decline, Match Group stock is still up more than 30% in the past year. Nevertheless, the dating specialist will have to see its recent strategic moves and other initiatives pay off to get the stock moving back in the right direction.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Match Group. The Motley Fool recommends Amgen. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Amgen Stock Quote
$283.74 (0.12%) $0.34
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$34,347.03 (0.45%) $152.97
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
$4,026.12 (-0.03%) $-1.14
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
$11,226.36 (-0.52%) $-58.96
Match Group Stock Quote
Match Group
$47.27 (-2.07%) $-1.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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