Stocks fell sharply, led down by tech shares after disappointing quarterly results from Google parent
Alphabet.
The
Nasdaq Composite
entered correction territory Wednesday.
These stocks made moves:
Alphabet (GOOGL) posted earnings in the third quarter that beat analyst estimates but Google Cloud revenue grew just 22% to $8.4 billion, missing forecasts of $8.6 billion and slowing from 28% in the previous quarter. Alphabet shares dropped 9.5%.
Microsoft
‘s (MSFT) fiscal first-quarter revenue jumped 13% to $56.5 billion and beat Wall Street expectations. Revenue in the company’s Azure cloud business rose 29%, ahead of the pace set in the previous quarter.
Microsoft
reported profit of $2.99 a share, well ahead of expectations of $2.65. The stock rose 3.1%.
Boeing
(BA) reported a wider-than-expected loss in the third quarter. The aerospace company reaffirmed guidance for free cash flow of between $3 billion and $5 billion in 2023. The stock fell 2.5%.
SunPower
(SPWR) dropped 18% after the solar panel maker said it would be restating financial statements for 2022 and for the first two quarters of 2023.
SunPower
said it determined “the value of consignment inventory of microinverter components at certain third-party locations had been overstated in the affected periods in the range of approximately $16 million to $20 million.”
PayPal Holdings
(PYPL) declined 5.1% and
Block
(SQ) declined 8% after a warning from a major European payments company sent jitters through the industry.
Chip maker
Texas Instruments
(TXN) reported third-quarter revenue below analysts’ expectations and issued a forecast for its fiscal fourth quarter that also missed.
Texas Instruments
said it expects revenue in the fourth quarter of between $3.93 billion and $4.27 billion and earnings between $1.35 and $1.57 a share. Analysts were calling for revenue of $4.5 billion and adjusted earnings of $1.79 a share. The stock fell 3.5%.
General Dynamics
(GD) was up 4% after third-quarter earnings and revenue at the defense company beat analysts’ forecasts.
WM (WM), previously known as
Waste Management,
was the
S&P 500
‘s top performer Wednesday, rising 6.1%, after beating third-quarter earnings estimates and raising guidance on free cash flow.
Shares of
Snap
(SNAP) fell 5.4% after the parent of
Snapchat
reported a third-quarter loss that was narrower than expected and revenue of $1.19 billion that beat analysts’ expectations. Daily active users were 406 million versus the 405.8 million estimate.
Shares of
Teladoc
(TDOC) closed down 3.9% after the virtual care company reported a narrower-than-expected third-quarter loss but revenue of $660 million that missed estimates.
Stride
(LRN) reported a fiscal first-quarter profit of 11 cents a share, while analysts were forecasting a loss of 37 cents. Revenue in the period rose nearly 13% to $480.2 million. The stock jumped 18%.
Gap
(GPS) rose 5.2% after shares of the retailer were upgraded to Overweight from Equal Weight at
Wells Fargo,
which cited “improved cost controls” and new management.
Thermo Fisher Scientific
(TMO) slumped 5.5% after the leading maker of laboratory equipment and analytical instruments reported third-quarter sales short of Wall Street’s expectations and again slashed its full-year guidance.
Vicor
(VICR) fell 27% after the maker of modular power components said bookings remained weak.
Earnings reports are expected after the closing bell Wednesday from
Meta Platforms
(META),
International Business Machines
(IBM), and
ServiceNow
(NOW).
Write to Joe Woelfel at joseph.woelfel@barrons.com
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