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Major Wall Street banks remain bullish on Alphabet following the tech titan's strong third-quarter results . On Tuesday, Google's parent company reported earnings of $2.12 per share, while analysts polled by LSEG had predicted $1.85 per share. The company's revenue grew 15% year over year to $88.27 billion, more than the same quarter last year and the $86.30 billion analysts had anticipated. "We think shares could remain choppy as we work through the Search remedies, given the large impact zone, but performance in 3Q was solid." Meanwhile, Goldman Sachs' Eric Sheridan also commended the firm for its strong investment cycle, which includes investments into Google's Cloud infrastructure and more AI deployment through its application ecosystem.
Persons: LSEG, Goldman Sachs, Morgan Stanley, Ross Sandler, Doug Anmuth, Eric Sheridan Organizations: Barclays, Citi, JPMorgan, Bank of America, of America, Google, DOJ
Eli Lilly on Wednesday fell short of profit and revenue expectations for the third quarter, weighed down by disappointing sales of its blockbuster weight loss drug Zepbound and diabetes treatment Mounjaro, and slashed its full-year adjusted profit guidance. Eli Lilly now expects full-year adjusted earnings of between $13.02 and $13.52 per share, down from previous guidance of $16.10 to $16.60 per share. Eli Lilly also lowered the high-end of its revenue outlook for the year and now expects sales of between $45.4 billion and $46 billion. The weekly injection raked in $1.26 billion in sales for the period, below the $1.76 billion that analysts expected, according to StreetAccount. As of Wednesday, the Food and Drug Administration's drug database said all doses of Zepbound and Mounjaro are available in the U.S. after extended shortages.
Persons: Eli Lilly, Mounjaro, Eli Lilly's Organizations: Novo Nordisk, LSEG, Food Locations: U.S
Meta reported third-quarter earnings on Wednesday, in which it said that its Reality Labs unit, which develops augmented and virtual reality technologies, logged an operating loss of $4.4 billion. Analysts polled by StreetAccount were expecting that unit to post an operating loss of $4.68 billion. Reality Labs revenue rose 29% year-over-year to $270 million in the third quarter, below analysts' expectations $310.4 million. Reality Labs primarily makes money through selling Meta's Quest VR headsets and the Ray-Ban Meta smart glasses. After the company's Wednesday earnings report, Reality Labs has an operating loss of more than $58 billion since 2020.
Persons: Mark Zuckerberg, Meta's, Meta, StreetAccount, Ray Organizations: Meta, Orion, Reality Labs, Reality, VR, Facebook, CNBC Locations: Menlo Park , California, U.S
Ford CEO Jim Farley is a big fan of Xiaomi's SU7 EV — and it just got a major upgrade. The Chinese tech giant unveiled the SU7 Ultra, a high-performance electric car with a max speed of 350km per hour. AdvertisementFord CEO Jim Farley's favorite Chinese EV just got a major upgrade. Speaking on a podcast last week, Ford CEO Farley praised Xiaomi as an "industry juggernaut" and said he was a big fan of the SU7. AdvertisementWestern automakers like Ford are under pressure from Chinese electric car makers, which are expanding rapidly worldwide.
Persons: Jim Farley, , Jim Farley's, Xiaomi, Farley, Lei Jun, it's, I've, Tesla, Elon Musk Organizations: , Service, Ford, Citibank Locations: China, presale, Shanghai, Chicago
I tried out Apple Intelligence on an iPhone 16 Pro Max over the first few days of its rollout. The iOS 18.1 update introduced AI tools like writing aids and photo editing on newer iPhones. AdvertisementI've been testing out Apple Intelligence for 48 hours, and it's already changing the way I use an iPhone. For transparency, I own an iPhone 14 Pro Max — an older model that can't support Apple's newly rolled-out AI features. AdvertisementThe tools aren't perfect, and Apple has said that outcomes can vary when it comes to Apple Intelligence.
Persons: Max, , Max —, I've, Jordan Hart, Apple Organizations: Apple Intelligence, Service, Max, Apple, Worldwide, Conference
CNN —Chipotle customers have complained that portion sizes are all over the map. Frustrated Chipotle customers took to posting on social media this year, accusing the company of skimping on servings. He added that about 10% of stores were outliers in portion sizes and would be re-trained. Chipotle employees were never directed to serve customers less, Niccol said, but the claims prompted a reevaluation of the entire system. He said there’s a been a noticeable shift from previous unhappiness and customers are “really excited” about Chipotle’s new portion sizes.
Persons: Scott Boatwright, Chipotle, Chris Kempczinski, pico de, Brian Niccol, Niccol, Organizations: CNN, , Employees, New, Starbucks Locations: skimping, Wells, New York City, portioning
Snap's revenue growth was attributed to AI features and growth in Snapchat+ users. Spiegel said Snap has also introduced AI tools for creators, which it has been pushing to onboard onto the platform recently. However, Snap projected that the current quarter will only see the number of users grow by 8 million to 451 million. Related storiesPaid subscribers and AI are boosting SnapThe CEO also attributed the revenue growth to paid subscriptions. Snap's 443 million user base is small compared to Meta's 3.3 billion users, and TikTok's more than 1 billion users, both of which it directly competes with for ad revenue.
Persons: , Evan Spiegel, Spiegel, James Heaney Organizations: Service, Google, Jefferies
The report was messy, but it doesn't dim Eli Lilly's bright multiyear outlook, rendering the dip in the stock as a chance to buy. LLY .SPX 5Y mountain Eli Lilly's five-year stock performance compared with the S & P 500. Bottom line We're upgrading Eli Lilly to our buy-equivalent 1 rating and leaving our price target of $1,000 a share unchanged. Eli Lilly Why we own it: Eli Lilly's best-in-class drugs should enable growth above the industry average for many years to come. Eli Lilly's new Alzheimer's drug Kisunla, which was approved by the FDA in July, was not a major focus on the call.
Persons: Eli Lilly, Eli, Eli Lilly's, Jim Cramer, Jim, , that's, David Ricks, Ricks, Semaglutide, Wegovy, Lilly, There's, Mounjaro, Trulicity, Verzenio, Jim Cramer's, Cristina Arias Organizations: Revenue, The Club, CNBC, JPMorgan, Novo Nordisk, Food, Novo Nordisk's, FDA, Zepbound, Biogen, Merck, Pfizer, Morphic, Company, Pharmaceutical Locations: Tuesday's, U.S, Novo, Eisai, FactSet, Zepbound, Alcobendas, Madrid, Spain
These so-called "pending" sales were at the highest level since March and 2.6% higher than September of last year. Since pending sales are based on signed contracts, representing people out shopping during the month, it is the most current indicator of buyer demand. "Further gains are expected if the economy continues to add jobs, inventory levels grow, and mortgage rates hold steady." Regionally pending sales were higher year over year in the Northeast and West and flat in the Midwest and South. The levels of mortgage demand are still historically low, and sales, while higher, are as well.
Persons: Lawrence Yun, Selma Hepp Organizations: National Association of Realtors, Analysts, Mortgage News, Realtors, Mortgage, Association Locations: Northeast, West, Midwest, homebuyers
CNBC Daily Open: Everyone gave Reddit an upvote
  + stars: | 2024-10-30 | by ( Yeo Boon Ping | ) www.cnbc.com   time to read: +3 min
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. It's not too surprising, then, that the companies behind those services – Snap , Reddit and Alphabet – reported third-quarter results that beat Wall Street's expectations. It's Meta's and Microsoft's turn to report earnings later today. Note: CNBC Daily Open will be on a break Thursday, Oct. 31, for the public holiday in Singapore.
Persons: Rachel Reeves, Reddit, Evan Spiegel, That's, It's, Microsoft isn't, Meta, — CNBC's Julia Boorstin, Jonathan Vanian, Jennifer Elias Organizations: New York Stock Exchange, Inc, CNBC, Finance, Google, Microsoft, Meta Locations: Singapore
The weapon resembles a US sea drone the group captured years ago, analysts told BI. AdvertisementThe Houthi rebels in Yemen have a new torpedo to show off — and it looks familiar. Martin Kelly of the UK advisory firm EOS Risk Group, said the torpedo could derive from a US REMUS 600 drone lost in 2018. Houthi forcesPer Kelly, Iranian scientists could have turned a captive example into a "blueprint" for the homegrown weapon seen this week. He told BI that the torpedo looked like models put on display at an Iranian navy exhibition in Tehran in December 2023.
Persons: , Al Qar'iah, Martin Kelly, REMUS, US REMUS, Per Kelly, Kelly, Mohammed Albasha Organizations: Service, EOS Risk, US MIM, US, US Defense Intelligence Agency, Geneva Graduate Institute, BI, US Navy, Pentagon, Drewry Locations: Iran, Yemen, US, Russia, Ukraine, Tehran, Iranian, Red, Israel, Gaza, Albasha
Microsoft reported earnings per share of $3.30 on revenue of $65.59 billion, while analysts polled by LSEG forecast $3.10 in earnings per share and $64.51 billion in revenue. Analysts polled by LSEG were looking for $1.03 per share in earnings and $9.36 billion in revenue. Analysts polled by LSEG sought earnings of 25 cents per share and revenue of $3.45 billion. Etsy also beat third-quarter revenue estimates with $662.4 million, while analysts polled by LSEG were expecting $652.5 million. MGM Resorts reported adjusted earnings of 54 cents for the third quarter, while analysts polled by LSEG predicted 61 cents per share.
Persons: LSEG, Meta, Coinbase, Robinhood, Carvana, Etsy, Darla Mercado Organizations: Microsoft, Wall, LSEG, Holdings, Starbucks, Facebook, eBay, Ebay, MGM Resorts, Revenue Locations: U.S, China
Oil prices steady on shrinking U.S. crude inventories
  + stars: | 2024-10-30 | by ( ) www.cnbc.com   time to read: +1 min
Oil prices stabilized on Wednesday on industry data showing a surprise drop in U.S. crude and gasoline inventories, following two previous sessions of losses on the prospect of hostilities easing in the Middle East. U.S. crude oil and fuel stocks fell last week, market sources said on Tuesday, citing American Petroleum Institute figures. Crude stocks dipped by 573,000 barrels in the week ended Oct. 25, the sources said on condition of anonymity. Gasoline inventories lost 282,000 barrels, and distillate stocks fell by 1.46 million barrels, the sources said. On Monday, prices lost about 6% after Israel's retaliatory strike on Iran over the weekend missed Tehran's oil infrastructure.
Persons: Benjamin Netanyahu Organizations: Brent, . West Texas, American Petroleum Institute, Reuters, U.S, Israeli Locations: Midland , Texas, Lebanon, Iran
Big Tech companies are helping propel third-quarter earnings growth, but some analysts are less optimistic about a handful of names reporting next week. To help investors prepare for what is still to come, CNBC Pro screened FactSet data to find stocks reporting next week where analysts are losing conviction. Analysts have trimmed their earnings estimates by more than 21% over the past three months and 29% over the trailing six months. What's more is analysts have lowered earnings estimates nearly 30% over the past three months and roughly 24% over the past six months. AIG YTD mountain AIG stock.
Persons: Stocks, Daniels, Michael Zaremski, YTD, Zaremski Organizations: Big Tech, CNBC Pro, AIG, CVS Health, Daniels, Midland, ADM, BMO Capital Locations: Archer, Illinois, Albemarle, Corteva
AMD still has a gap to close with Nvidia's AI chips
  + stars: | 2024-10-30 | by ( Helen Li | ) www.businessinsider.com   time to read: +4 min
AMD aims to close the gap with Nvidia, which holds 80% of the GPU market. AMD still has a large gap with Nvidia, as it lags behind in GPUs or graphics processing units. Su responded that AMD's road map "actually closed a good part of that gap" with Nvidia's products and that AMD holds an advantage in data center retrofitting. Advertisement"As much as we still believe NVDA will be hard to shake from its 80-85% AI share, AMD still has done an enviable job from virtually zero to ~5% market share," Arya wrote in a note released on Wednesday. Even if this share remains unchanged, the underlying AI growth will still provide AMD "the chance to participate," he added.
Persons: , Lisa Su, MI350, Blackwell, Vivek Arya, Su, Piper Sandler, Harsh Kumar, We've, Arya, Morgan Stanley Organizations: AMD, Nvidia, Service, Devices, Wall Street, Bank of America Securities, Analysts, Microsoft, Meta, Google
Meta set to report Q3 earnings after the bell
  + stars: | 2024-10-30 | by ( Jonathan Vanian | In | ) www.cnbc.com   time to read: +2 min
Mark Zuckerberg, chief executive officer of Meta Platforms Inc., arrives for the Meta Connect event in Menlo Park, California, US, on Wednesday, Sept. 25, 2024. Meta is slated to report third-quarter earnings on Wednesday after the close of regular trading. Meta's results come a day after digital ad companies Alphabet , Reddit and Snap all reported solid quarterly earnings. Microsoft reports after the bell on Wednesday, and the big week for tech earnings wraps up on Thursday, when Apple and Amazon report quarterly financials. If Meta hits analysts' expectations for third-quarter revenue, that would represent 18% year-over-year growth, down from 23% a year ago.
Persons: Mark Zuckerberg, LSEG, Jeff Bezos, Zuckerberg, Bernstein, Meta Organizations: Meta, Inc, Amazon, Bloomberg, Microsoft, Apple Locations: Menlo Park , California, China
Mark Zuckerberg, CEO of Meta Platforms Inc., arrives for the Meta Connect event in Menlo Park, California, on Sept. 25, 2024. Meta has been so quick to build out its massive data center and computing infrastructure for artificial intelligence projects that CEO Mark Zuckerberg is even a bit surprised. In a call with analysts on Wednesday after Meta's third-quarter earnings report, Zuckerberg explained to investors how Meta's rising costs for the year are tied to the speed at which employees are able to get data centers, servers and chips for AI up and running. Meta raised the low end of its capital expenditures guidance for 2024 to $38 billion from $37 billion. "That execution makes me somewhat more optimistic that we're going to be able to keep on building this out at a good pace."
Persons: Mark Zuckerberg, Meta, Zuckerberg, we've Organizations: Meta, Inc Locations: Menlo Park , California
The company saw a 68% revenue increase and a 47% rise in daily active visitors in Q3. Reddit's third-quarter revenue soared 68% to $348.4 million from a year ago, comfortably beating analysts' expectations of $312.8 million. This positive net increase was consistent with its second-quarter results, during which the platform saw a 51% increase in daily active users globally. Elon Musk's X reported 1.6% growth in daily active users in 2024's second quarter, per the FT. The daily active users on all of Meta's platforms combined, which include Facebook, Instagram, and Threads, increased by 7%, according to its second-quarter earnings report.
Persons: , Steve Huffman, Huffman, Reddit, AMAs, Elon Musk's, Jefferies, RDDT Organizations: Service, Analysts, Global, Elon, Facebook, New York Stock Exchange Locations: Spanish
Reddit shares soar 40% on profitability, rosy guidance
  + stars: | 2024-10-30 | by ( Ashley Capoot | In | ) www.cnbc.com   time to read: +2 min
Reddit CEO Steve Huffman hugs mascot Snoo as Reddit begins trading on the New York Stock Exchange on March 21, 2024. Shares of Reddit popped more than 40% on Wednesday, one day after the social media company posted a surprise profit in its third-quarter results and offered rosy guidance. Reddit said fourth-quarter revenue will be between $385 million and $400 million, above the average analyst estimate of $357.9 million. "It was another strong quarter for Reddit and our communities as we achieved important milestones, including new levels of user traffic, revenue growth, and profitability," Reddit CEO Steve Huffman said in a press release. They said they're encouraged by Reddit's strong revenue growth, improved profitability and growing daily active unique users.
Persons: Steve Huffman, Snoo, Reddit, JP Morgan, they're, Bernstein, Jekyll, Hyde, that's, Michael Bloom, Jonathan Vanian Organizations: New York Stock Exchange, LSEG, Citi, JP
Shares of eBay slumped about 9% in extended trading on Wednesday after the online marketplace posted its third-quarter earnings and gave guidance for the fourth quarter that fell short of Wall Street's expectations. The guidance trailed the average analyst estimate for fourth-quarter revenue of $2.65 billion, according to StreetAccount. The company also said it expects $1.17 to $1.22 in adjusted earnings per share in the fourth quarter. The company didn't provide clarity on its forecast in the earnings release. GMV, or the dollar value of items sold on eBay's marketplace, grew 2% year over year to $18.3 billion, eBay said, which topped analysts' projected $18.1 billion, per StreetAccount estimates.
Persons: Steve Priest Organizations: eBay, LSEG, LSEG Revenue, EBay, Walmart, Big Tech Locations: China
Another busy day of megacap technology earnings kicks off Wednesday with results from Meta Platforms and Microsoft after the bell. Wall Street expects Meta Platforms to post third-quarter earnings of $5.25 per share, up from $4.39 a year ago, per LSEG. For Microsoft, EPS and revenue are expected to reach $3.10 and $64.51 billion, respectively, for the fiscal first quarter . Meta Platforms For Meta Platforms, analysts are hunting for signs that AI is continuing to boost the company's core product and advertising spending. Microsoft Microsoft faces a tougher bar headed into the print, with many analysts leaning toward caution as the company lags some of its megacap peers and underperforms the Nasdaq Composite.
Persons: haven't, Davidson, Gil Luria, Citi's Ronald Josey, Citi's Josey, Mark Mahaney, Barton Crockett, Mark Shmulik, Bank of America's Justin Post, Keith Bachman, Citi's Tyler Radke, Morgan Stanley's Keith Weiss, Weiss, Goldman Sachs, Kash Rangan, Azure's Organizations: Meta, Microsoft, D.A, Revenue, Google, Bank of America's, Microsoft Microsoft, Nasdaq, BMO Capital Markets, BMO
Nearly 70% of the Fortune 500 is using Microsoft 365 Copilot and the company is seeing faster customer adoption than any other new Microsoft 365 Suite. MSFT YTD mountain Microsoft YTD Despite these positive trends and innovations, revenue guidance for next quarter fell a touch short of expectations. Microsoft 365 Commercial cloud revenue growth increased 16% year over year with seat growth up 8%. Microsoft 365 Consumer cloud revenue growth increased 7% year over year with subscribers increasing to 84.4 million from 82.4 million one quarter ago. Revenue growth ticked down sequentially to 33% annual growth, or 34% on a constant currency basis.
Persons: Nvidia's Blackwell, That's, , Jim Cramer's, Jim Cramer, Jim, Microsoft Corporation Satya Nadella, Chalinee Thirasupa Organizations: Microsoft, Revenue, Fortune, Productivity, Dynamics, CNBC, Activision, Windows, Gaming, Microsoft Corporation Locations: OpenAI, Bangkok, Thailand
The focus on advanced technologies has put the two countries into a different kind of arms race. The US Air Force secretary suggested that AI could be decisive in future warfare. On Tuesday, Air Force Secretary Frank Kendall said China has been effectively modernizing the People's Liberation Army, fielding systems with the intent of challenging US forces, especially its high-value combat assets like carriers and satellites. China has built up its Rocket Force, developing capabilities that put US military assets at military bases and airfields across the Indo-Pacific within striking range. The Air Force secretary said that he doesn't think people who say that AI is "going to determine who's the winner in the next battlefield" are "all that far off."
Persons: , Frank Kendall, Kendall, Xi Jinping, Sarah Weinstein, Giancarlo Casem Organizations: US Air Force, Service, Air Force, People's Liberation Army, Microelectronics, National Semiconductor Technology, PLA, Eastern Theater Command, Weibo, Department of Defense, Rocket Force, Navy, DARPA, USAF, Marines Locations: China, Taiwan, Beijing, Ukraine
"It is clear we need to fundamentally change our strategy to win back customers," CEO Brian Niccol said in a statement. Shares of the company fell 1% in extended trading on Wednesday. The company's global same-store sales fell 7%, fueled by weak demand in the U.S. and China. The company's U.S. restaurants reported same-store sales declines of 6%, fueled by a 10% tumble in traffic. In China, the company's same-store sales plummeted 14% as both traffic and average ticket fell.
Persons: Brian Niccol Organizations: Starbucks, LSEG Locations: U.S, China
Additionally, Reddit guided for fourth-quarter revenue of between $385 million and $400 million, while analysts had estimated an average of $357.9 million. Josey wrote that Reddit's continued user growth and engagement gains have boosted the company — and should continue to do so. JPMorgan analyst Doug Anmuth raised his price target to $110 from $77, while Bank of America analyst Justin Post lifted his target price to $99 from $84. These updated objectives respectively imply that Reddit stock could rise 35% and 21% from its Tuesday close. Shmulik's $85 price target, raised from $65, is just 4% higher than the stock's Tuesday closing price.
Persons: Reddit, LSEG, Ronald Josey, Josey, Reddit's, Morgan Stanley, Doug Anmuth, Justin Post, Brian Nowak's, Bernstein, Mark Shmulik, Shmulik, Jekyll, Hyde, that's Organizations: Citi, Bank of America, JPMorgan Locations: Reddit, Tuesday's
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