Market Today: Microsoft and Snap Surpass Expectations, Alphabet and Texas Instruments Disappoint
On the 24th of October, 2023, the S&P 500 saw an increase of 0.72%, while the Dow Jones Industrial Average rose by 0.62%. The Nasdaq Composite also experienced growth, rising by 0.93%. The 10-year Treasury yield fell by 0.64% to 4.815.
Microsoft (NASDAQ:MSFT) shares rose by over 4.5% in extended-hours trading after the company reported fiscal first-quarter results that exceeded expectations. This was largely due to the strong growth in its Azure cloud. Microsoft's cloud services revenue, which is primarily comprised of Azure, grew by 29%, or 28% year-over-year in constant currency. Amazon (NASDAQ:AMZN) shares also rose in extended-hours trading due to the strong cloud results.
Despite beating earnings expectations on top and bottom lines, Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) saw a slip in early postmarket action. Revenues grew by 11% to $76.69B, breaking a string of single-digit revenue gains amid an ongoing advertising-market recovery. However, revenues in Google's Cloud unit didn't grow as fast as expected, which was the company's only segment that didn't beat Street consensus.
Snap (NYSE:SNAP) shares jumped 13% post-market Tuesday after smashing expectations. The social media company reported EPS of $0.02 versus the average analyst estimate of -$0.05. Revenue of $1.19B compared to the expectation of $1.11B. For the fourth quarter, the company expects revenue of $1.32B to $1.38B, compared to the estimate of $1.33B.
Visa (NYSE:V) reported Q4 Non-GAAP EPS of $2.33, beating expectations by $0.09. Revenue of $8.6B (+10.3% Y/Y) also beat expectations by $50M. Net revenues in the fiscal fourth quarter were $8.6 billion, an increase of 11%, driven by the year-over-year growth in payments volume, cross-border volume and processed transactions.
Texas Instruments (NASDAQ:TXN) shares fell nearly 3.5% in extended-hours trading after the analog semiconductor company posted third-quarter results and guidance that missed expectations by a wide margin. Looking ahead, Texas Instruments expects fourth-quarter sales to be between $3.93B and $4.27B, below the $4.49B that analysts were anticipating.
Marathon Digital (NASDAQ:MARA) filed for a prospectus relating to a mixed shelf offering for an initial offering price of up to $750M. This prospectus is not an offer to sell or a solicitation of an offer to buy these securities.
Antero Resources (NYSE:AR) saw a 0.9% increase in Tuesday's trading as Raymond James double upgraded the stock to Strong Buy from Market Perform with a $37 price target.
Chubb (NYSE:CB) reported Q3 Non-GAAP EPS of $4.95, beating expectations by $0.53.
UFC is replacing Constellation Brands' (STZ) Modelo as its beer sponsor with Anheuser-Busch InBev's (NYSE:BUD) Bud Light in the mixed martial arts company's largest-ever sponsorship deal.
F5 Networks (NASDAQ:FFIV) reported Q4 Non-GAAP EPS of $3.50, beating expectations by $0.29. Revenue of $706.97M (+1.0% Y/Y) also beat expectations by $4.72M.
Truist Financial (NYSE:TFC) declared a $0.52/share quarterly dividend, in line with previous.
Wells Fargo (NYSE:WFC) declared a $0.35/share quarterly dividend, in line with previous.
General Motors' (NYSE:GM) Cruise self-driving vehicle company announced that it would pause operations of its autonomous vehicles (AVs) in San Francisco, after the California Department of Motor Vehicles (DMV) suspended its deployment and driverless testing permits.
News that Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) could sell PC chips using architecture from Arm Holdings (NASDAQ:ARM) is a mixed bag for several companies involved, analysts said.
This article first appeared on GuruFocus.
