To begin their trading day, investors should be aware of the following key news items:
1. In a pause
Monday’s end-of-year stock market boom came to a halt. The Nasdaq Composite fell 0.84% as investors dumped Big Tech equities, which had been driving the market upward. Small-cap stocks did better than the rest of the market, with the Russell 2000 registering a 1% gain.
2. Seeing success
In relation to rallies, GitLab’s shares increased 14% on Tuesday in premarket trading after the business revealed impressive third-quarter financial results. The third-quarter financial results of the open-source software development platform were better than expected, and it provided optimistic projections for the current quarter. With those results, GitLab, which went public in 2021, has reported an adjusted operational profit for the first time. During the quarter that concluded on October 31, GitLab’s revenue increased 32% year over year.
3. Reductions at Twilio
Less encouraging news for software suppliers was revealed on Monday when Twilio announced that, as part of a larger initiative to restructure the business, it will be laying off roughly 5% of its workers. Based on Twilio’s headcount in its most recent regulatory filing, the layoffs will impact roughly 300 workers, with CEO Jeff Lawson indicating that they will mostly target the company’s Data and Applications division.
4. Keep your phone in your hand
After the telecom giant missed out on a significant contract with American behemoth AT&T, Nokia’s stock fell sharply on Tuesday on the Helsinki exchange. Rather than work with Nokia’s Swedish competitor Ericsson, AT&T said that it will collaborate with them on a roughly $14 billion project to install equipment in the United States. By late 2026, AT&T anticipates using this technology to power 70% of its wireless network traffic.
5. Dipping below
The outlook for China’s government credit ratings was reduced from stable to negative by the rating agency Moody’s. Moody’s expressed concern about growing debt concerns in its decision-making process, noting that Beijing’s fiscal support for struggling local governments and state-owned businesses could weaken the nation as a whole.
Source (CNBC)