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Stock Futures Fall Following Mixed Earnings Results


Stock futures were on a downward trend Wednesday, with tech shares leading the decline, in response to the mixed earnings reports from Microsoft and Google’s parent company, Alphabet. The market continues to be influenced by corporate performances, as Boeing, Meta Platforms, and International Business Machines prepare to announce their results.

Microsoft Shows Impressive Growth Numbers

Microsoft reported a remarkable 13% jump in revenue for its fiscal first quarter, amounting to $56.5 billion, surpassing expectations set by Wall Street. The company’s Azure cloud business experienced a notable rise of 29%, outperforming the previous quarter. Furthermore, Microsoft’s profit per share was $2.99, exceeding the anticipated $2.65. As a result, the stock saw a 3.5% increase.

Alphabet’s Earnings Beat Estimates While Google Cloud Slows Down

Alphabet released its third-quarter earnings, which exceeded analysts’ estimates. However, there was a slowdown in the growth of Google Cloud revenue, which only increased by 22% to reach $8.4 billion. This figure fell short of the forecasted $8.6 billion and represented a decrease from the previous quarter’s growth rate of 28%. Consequently, Alphabet shares experienced a decline of 6.8%.

Visa’s Strong Fiscal Fourth Quarter

Visa narrowly surpassed both earnings and revenue estimates in its fiscal fourth quarter, driven by the ongoing recovery in international travel following the pandemic. The payments company expressed optimism about the future, projecting a “high single-digit to low double-digit” growth in revenue for the next fiscal year, along with a “low-teens” increase in adjusted earnings per share. Despite this positive outlook, Visa’s shares decreased by 0.9%.

Texas Instruments Misses Revenue Expectations

Chip maker Texas Instruments (TXN) reported third-quarter revenue below analysts’ expectations and issued a forecast for its fiscal fourth quarter that also fell short.

Disappointing Fourth-Quarter Forecast

Texas Instruments expects revenue in the fourth quarter to range between $3.93 billion and $4.27 billion, with earnings between $1.35 and $1.57 a share. However, analysts were anticipating revenue of $4.5 billion and adjusted earnings of $1.79 a share. As a result, the stock fell 4.7%.

Snap Beats Expectations, Shares Rise

Shares of Snap (SNAP) rose by 1.8% in premarket trading following the parent company of Snapchat reporting a narrower-than-expected third-quarter loss and revenue of $1.19 billion, surpassing analysts’ expectations. The company’s daily active users reached 406 million, slightly exceeding the estimated 405.8 million.

Teladoc Falls Short on Revenue

Teladoc (TDOC) saw a decline of 6.7% in shares after the virtual care company reported a narrower-than-expected third-quarter loss but revenue of $660 million, missing estimates.

Stride Surpasses Forecasts with Strong First Quarter

Stride (LRN) announced a fiscal first-quarter profit of 11 cents a share, significantly outperforming analysts’ expectations of a loss of 37 cents. The company experienced nearly 13% growth in revenue, which amounted to $480.2 million for the period.

SunPower Restating Financial Statements

SunPower (SPWR) experienced a 9.5% drop in premarket trading after revealing its intention to restate financial statements for 2022 and the first two quarters of 2023. The solar panel maker identified an overstatement of consignment inventory value for certain third-party locations, amounting to approximately $16 million to $20 million in the affected periods.

Earnings Reports to Watch

Several major companies are set to report their earnings on Wednesday, providing insights into the current state of their business. Here’s a look at some of the notable companies releasing their financial results:

Meta Platforms (META)

Thermo Fisher Scientific (TMO)

T-Mobile US (TMUS)

International Business Machines (IBM)

ServiceNow (NOW)

Boeing (BA)

General Dynamics (GD)

Keep an eye on these companies as their earnings reports could have an impact on the market.

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