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Here are five things you need to know for Friday, October 26th:
1. – Stocks drop as Amazon and Alphabet shake world markets
US equity futures fell sharply on Friday, October 26, following higher sales in Europe and prolonged declines in Asia, driven by the disappointing earnings outlook of some of the world's largest companies.
Third-quarter updates from technology giants Amazon.com Inc. (AMZN) and Google's parent company Alphabet Inc. (GOOGL) weaken investor sentiment in global markets as growth expectations slow facing escalating trade disputes, rising US dollar rates.
Dow Jones Industrial Average contracts lost 240 points, S & P 500 futures dropped 35.25 points, and Nasdaq futures plunged 172.50 points.
Shares rebounded on Thursday, October 25, as investors base their hopes on strong corporate earnings. The Dow jumped 401 points, or 1.63%, to 24,984, the S & P 500 1.86% and the Nasdaq 2.95%, the securities of technology and communications services being head.
The economic calendar released Friday in the United States includes the first estimate of GDP in the third quarter at 8:30 am. Economists surveyed by FactSet expect an annualized GDP of 3.3%, against 4.2% in the second quarter.
The calendar also includes consumer sentiment for October at 10 am.
Phillips 66 (PSX), Colgate-Palmolive Co. (CL) and Charter Communications Inc. (CHTR) are expected to present their results.
2. Amazon's light revenue prospects obscure the pace of gains
Amazon.com Inc. (AMZN) lost 10.2% of its off-market sales on Friday, after weak revenue prospects and slowing global growth in the online retail giant masking earnings strength and continued dynamism of services.
Amazon achieved a quarterly profit of $ 5.75 per share, easily exceeding the estimates of $ 3.08, but a $ 56.58 billion third-quarter sales figure was lower than the consensus of 57, $ 11 billion.
Amazon Web Services revenue grew 46 percent to $ 6.68 billion, slightly less than the estimated $ 6.71 billion. Growth slowed slightly from 49% in the second quarter, but remained above the 42% growth of the previous year.
For its fourth quarter, Amazon recorded revenue of $ 66.5 to $ 72.5 billion and operating profit of $ 2.1 billion to $ 3.6 billion, below consensus estimates of 73, 79 and 3.86 billion dollars, respectively.
"The massive success of high-margin businesses (AWS and Advertising) has significantly improved the company's profitability profile, and we believe investors should focus on earnings momentum and cash flow growth." Exploitation, "added the PAA team.
3. – Alphabet & # 39; s Revenue Miss runs the stock
Alphabet Inc. (GOOGL) dropped 5.9% after Google's parent company posted a third-quarter profit of $ 13.76, generating $ 33.7 billion in revenue, exceeding final estimates $ 10.41 but missing expectations of $ 34.04.
Advertising remains Alphabet's main cash cow, advertising revenue generated by Google platforms accounting for about 70% of net revenue in recent years, with annual growth of about 20%. In the third quarter, Google's advertising revenue reached $ 28.95 billion. Ruth Porat, Chief Financial Officer, said in her earnings report that "mobile research and our many products help billions of people every day."
During a phone conversation with investors on Thursday, analysts polled CEOs Sundar Pichai and Porat on various initiatives, ranging from the marketing of Waymo, his driverless automotive unit, to Verily, his life sciences unit. , going through its business activities in China.
Alphabet includes projects such as Waymo and Verily, which are not directly related to its main advertising business, in a segment called "Other Bets". These bets are only a small part of Alphabet's overall revenue of $ 146 million for the quarter, but Waymo in particular has sparked interest in its potential business value.
Porat said that Google has entered the "early days" of marketing Waymo with projects like an early pilot program and exploring B2B technology applications, such as licensing for deliveries or other cases of use of logistics.
"All in all, despite the various achievements of the quarter, there is no icing sugar, the output has been ugly," said Cramer and the Action Alerts PLUS team, which holds Alphabet in its portfolio.
4. – Intel falls despite a beating profit
Intel Corp. (INTC) lost 0.7% of sales before the year despite chip maker posting $ 1.40 profit for the third quarter, for $ 19.16 billion in revenue, higher than analyst forecasts of $ 1.15 and $ 18.13 billion for revenue.
"In the third quarter, customer demand from our data-centric and data-centric businesses was stronger than expected, which allowed our company to achieve record-breaking business and enhance its prospects. for the entire year, more than $ 6 billion compared to our expectations in January, "CFO and Acting CEO Bob Swan said in a press release.
Intel has raised its revenue forecast for the full year, from $ 69.5 billion to $ 71.2 billion, and its earnings guidance for the current year, from $ 4.15 to $ 4 billion. $ 53 per share.
5. Align post-decline losses among daily active users
Snap Inc. (SNAP) lost 13.3% of its pre-market sales after the social media company recorded a decline in the number of daily active users, although its profit and turnover exceeded Wall Street estimates.
Snap said that its number of daily active users was 186 million, which corresponds to expectations. That fell from $ 188 million in the previous quarter.
Snap posted an adjusted loss of 12 cents per share, which is lower than the consensus estimate of a loss of 14 cents. Revenues for the quarter were $ 298 million, exceeding expectations of $ 283 million.
Snap has announced a sales figure of between $ 355 and $ 380 million for the fourth quarter and an adjusted operating loss of between $ 75 million and $ 100 million.
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