#Stock #Market #Opens
Shares of Google parent Alphabet (GOOGL) jump in pre-market trading after the tech giant beat earnings estimates on rising cloud revenue; Eli Lilly (LLY) shares fell after its results missed the target; Advanced Micro Devices (AMD) stock fell after net income and sales guidance disappointed investors. Shares of Chipotle Mexican Grill (CMG) fell after same-store sales forecasts fell short of expectations; Microsoft (MSFT) and Meta (META) rise ahead of their earnings reports after the close. Here’s what investors need to know today.
1. Google shares rise on strong earnings and cloud revenue growth
Shares of Google parent Alphabet (GOOGL) rose 6% in pre-market trading after the tech giant reported better-than-expected third-quarter earnings. Alphabet’s revenue rose 15% year-over-year to $88.27 billion, and net income was $26.3 billion, or $2.12 per share, beating consensus expectations of analysts surveyed by Visible Alpha. Google Cloud generated revenue of $11.4 billion, beating expectations and representing 35% growth year-over-year as demand for artificial intelligence (AI) surges.
2. Eli Lilly stock declines as results fall short of estimates
Shares of Eli Lilly (LLY) fell 10% in pre-market trading after it reported third-quarter revenue and net income that were well below analyst estimates. Lilly reported profit of $970.3 million, or $1.07 per share, well below the $1.69 billion and $1.87 per share that analysts had expected. Adjusted earnings per share (EPS) of $1.18 was barely half of the $2.18 expected. Weight-loss drugs Mounjaro and Zepbound continue to boost Eli Lilly’s sales, with revenue of $11.44 billion, higher than last year’s $9.50 billion, though below the consensus of $12.18 billion.
3. AMD shares decline after earnings loss, simple guidance
Shares of Advanced Micro Devices (AMD) fell 8% in premarket trading after the chipmaker reported weaker-than-expected net income and guidance for the fourth quarter. While the company’s third-quarter revenue grew 18% year over year to $6.82 billion, ahead of expectations, its net income of $771 million, or 47 cents per share, was below expectations. AMD said it expects fourth-quarter revenue to range between $7.2 billion and $7.8 billion, with a midpoint below the analyst consensus of $7.6 billion.
4. Chipotle shares decline as sales expectations disappoint investors
Shares of Chipotle Mexican Grill (CMG) fell 6% in pre-market trading after the restaurant chain reported a weaker-than-expected sales outlook. Chipotle said it expects to see 2024 same-store sales increase in the mid-to-high single-digit range, while analysts were expecting a 7.5% growth rate, according to Visible Alpha. The chain’s revenue of $2.79 billion met expectations, while its net income of $387.4 million beat estimates.
5. Investors await Microsoft and Meta earnings
Shares of Magnificent Seven companies Microsoft (MSFT) and Meta Platforms (META) are trading higher in pre-market trading ahead of their earnings releases scheduled after markets close today. Microsoft stock rose 2% ahead of its earnings report, which is expected to show the tech giant posted a 14% jump in quarterly revenue. Meta, Facebook’s parent company, whose shares also rose 2%, is expected to post revenue growth of 18%. Apple, Amazon and Intel are scheduled to report earnings on Thursday.
#Stock #Market #Opens
