Today's biggest winners and losers in the stock market.
On this episode of Stock Movers:
- Shares of Meta Platforms Inc. (META) fell in the aftermarket session, after the company gave a disappointing revenue forecast for the current quarter, intensifying investor concerns about the social media giant’s unprecedented spending on artificial intelligence. Meta said third-quarter revenue will be $61 billion to $64 billion, with the midline of that range below the average analyst estimate of $63.2 billion, according to data compiled by Bloomberg. Meta relies on its advertising business to finance its expensive bets on AI products and infrastructure, including data centers and AI-powered glasses.
- Shares of Microsoft (MSFT) moved higher in extended trading, after the software company reported fourth-quarter results that beat expectations on key metrics, including cloud revenue. Microsoft’s cloud unit grew at the fastest pace in four years, suggesting that the company’s computing infrastructure and artificial intelligence services continue to make inroads with businesses. Azure cloud-computing revenue increased 43% during the fiscal fourth quarter, the company said Wednesday in a statement. That was the fastest quarterly growth since early 2022, and topped analysts’ average growth estimate of about 40%. Azure sales topped $100 billion for the first time during the fiscal year ended in June.
- Shares of Qualcomm (QCOM) declined after Wednesday's close, after the world's largest maker of smartphone processors, gave a weak profit forecast for the current quarter, signaling that component shortages and rising costs are taking a toll on its main market. Earnings will be $2.05 to $2.25 a share in the period running through September, excluding some items, the company said in a statement Wednesday. Even the upper end of that range would miss the average analyst estimate. Revenue will be $9.7 billion to $10.5 billion, compared with an average projection of $9.95 billion.
- Starbucks (SBUX) raised its annual outlook after quarterly results surpassed market estimates, showing that efforts to attract diners with speedier service and new products are paying off. The stock rose in extended trading and extending gains during the company’s conference call with analysts. The shares have advanced 23% this year through Wednesday’s close, more than three times the gain of the S&P 500 Index.
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