Pre-market US stocks | Microsoft Azure OpenAI customer growth increased 10 times, Alphabet-C net profit declined for four consecutive quarters, Alibaba Cloud's largest price reduction in history
US stock news: Alphabet-C's Q1 revenue was $69.787 billion, a YoY increase of 3%, higher than the expected $68.9 billion; net profit was $15.051 billion, a YoY decrease of 8.43%, and has been declining for four consecutive quarters; diluted earnings per share were $1.17, a YoY decrease of about 4.9%, higher than the expected $1.07. Advertising revenue was $54.548 billion, a YoY decrease of 0.2%. According to S&P Global Market Intelligence, the five-year credit default swap (CDS) for the US rose to 62 basis points, the highest level since 2011. GlaxoSmithKline's Q1 revenue was £6.95 billion, with a net profit of £1.49 billion. Adjusted earnings per share for the first quarter were 37 pence, with a market forecast of 33.3 pence. According to the Financial Times, Tencent plans to invest in more overseas gaming assets. According to four insiders, Tencent plans to invest in or acquire gaming studios, after slowing down new investments in late 2022. They said that European gaming studios are the main target. Alibaba Cloud announced the largest price reduction in history, with core product prices reduced by 15%.
US Stock News
According to S&P Global Market Intelligence, the US five-year credit default swap (CDS) rose to 62 basis points, the highest level since 2011.
GlaxoSmithKline's Q1 revenue was £6.95 billion, with a net profit of £1.49 billion. Adjusted earnings per share for the first quarter were 37 pence, compared to market expectations of 33.3 pence.
Alibaba Cloud announced its largest-ever price reduction, with core product prices reduced by 15% to 50% and storage product prices reduced by up to 50%. It is reported that Alibaba Cloud intends to further expand the user base and scale of public cloud, and increase the market penetration rate of cloud computing.
Microsoft's Q3 earnings per share were $2.45, higher than Wall Street's expected $2.23; revenue increased 7% to $52.9 billion, compared to the expected $51.02 billion. It has more than 2,500 Azure-OpenAI service customers, a tenfold increase from the previous quarter. Azure's revenue growth rate reached 27%, higher than analysts' expected 26.6%.
Apple plans to launch an artificial intelligence health guidance service and emotion tracker, according to market news.
According to the New York Post, Microsoft is preparing to complete the acquisition of Activision Blizzard.
Pre-market Movement
In pre-market trading, Dow futures were slightly up, Nasdaq futures were up 1.3%, and S&P 500 futures were up 0.45%.
Most popular Chinese concept stocks rose in pre-market trading, with Bilibili and XPeng up 4.6%, Beike up nearly 4%, Ideal Motors and JD.com up nearly 3%, NIO up more than 2%, Baidu, NetEase, and Alibaba up about 2%, and Pinduoduo up 1.6%.
Microsoft rose more than 7%, Amazon rose 3.4%, Google rose 1%, Meta rose 2%, Tesla rose 0.8%, and Western Pacific United Bank rose 18%.
3B Home Furnishings fell 35% after receiving a delisting notice from the Nasdaq Stock Exchange.
Institutional Views
1. Morgan Stanley: Maintains Overweight Rating on Meta with a Target Price of $250
Morgan Stanley believes that there are multiple new AI drivers in online advertising and generative content creation, which will drive stronger engagement, usage time, ad unit conversion, advertiser ROI, and ultimately monetization on core Facebook and Instagram. The bank believes that AI-driven behavioral changes will bring sustained multi-year online advertising growth.
2. Bank of America Securities: Maintains Buy Rating on Square with a Target Price of $96
Bank of America Securities analyst Jason Kupferberg believes that Square's upcoming performance and guidance may be a positive catalyst. The value and business model elasticity of Square are underestimated, and there is significant upside potential for Cash App, and believes that adjusted EBITDA "has the most significant upside potential." , and the preliminary guidance for EBITDA margin in the adjusted 2023 fiscal year may be raised.