Before the bell, take a look at the businesses that are in the news.
Alphabet: The company that owns YouTube and Google plummeted more than 6% in premarket trading after its cloud division’s profits missed projections. Alphabet beat estimates for both its top and bottom lines, but it reported cloud revenue of $8.41 billion as opposed to the $8.64 billion analysts surveyed by LSEG had predicted.
Microsoft — Before the bell, the company’s shares surged by about 4% as the owner of Xbox revealed better-than-expected fiscal first-quarter earnings, including an increase in profit from lower operating costs. The company’s Azure cloud division had a 29% increase in revenue over the time, exceeding forecasts.
One day after fourth quarter forecast below expectations, the stock of Texas Instruments, a designer and maker of semiconductors, fell 5.5%. According to FactSet’s StreetAccount, TXN expects Q4 EPS between $1.35 and $1.57, which is lower than the $1.76 consensus expectation. LSEG reports that Q3 revenue was $4.53 billion, below than Wall Street estimates of $4.58 billion.
Boeing — Following its announcement of a quarterly sales beat, the jet plane manufacturer’s shares increased by more than 3% ahead of market. Although it reduced its projected 2023 737 Max deliveries, Boeling increased its manufacturing target for 787 Dreamliners to five per month from four. Compared to expectations, Boeing’s quarterly losses were higher.
Snap—The company that owns Snapchat, which posted better-than-expected third-quarter earnings of 2 cents per share on $1.19 billion in revenue, saw its stock rise 2.8% prior to market opening. Prior to the commencement of the Israel-Hamas conflict, Snap withheld even more revenues due to a warning that certain sponsors had halted marketing.
Gap – As new management enhances cost controls and inventories, Wells Fargo upgraded the clothing retailer to overweight, causing its stock to rise by around 4%.
Visa — The payments company’s stock dropped 1.3% before the bell despite exceeding analyst expectations for its fourth quarter earnings and revenue and increasing its payout by 16%. Visa forecasts profits per share to be in the low teens and revenue growth for the entire year to range from high single digits to low double digits.
Teladoc Health — Following the release of mixed quarterly results and weaker-than-anticipated expectations, the telehealth stock slumped 5.1% before the market opened. While revenue fell short of expectations at $660 million, Teladoc Health reported a lower-than-expected loss per share. Additionally, the business stated that it anticipates a larger-than-expected loss in the fourth quarter.
Source (CNBC)
