Shares of Caterpillar Inc. dropped 9% in early trading on Thursday after the company reported third-quarter earnings that slightly exceeded analyst expectations. The results raised questions about the sustainability of the recent rally in AI-related stocks.
The US-based company, known for its power-generation equipment used in data centers, reported adjusted earnings of $7.20 per share for the quarter. This figure was just above the $7.10 average estimate from analysts polled by Bloomberg. However, the beat was smaller compared to the previous quarter.
Revenue for the quarter came in at $20.68 billion, which was slightly higher than the average estimate. Despite the modest earnings beat, investors reacted negatively, likely due to concerns about the broader market's reliance on AI-driven growth.