Traders will watch two Magnificent Seven firms that posted quarterly results after markets closed on Wednesday.
Tesla (TSLA) posted just $0.33 in earnings per share on a non-GAAP basis. However, revenue grew by 25.6% Y/Y to $28.24 billion. Expect the stock to trade down by around 4% this morning. As investors get more selective on richly valued stocks, Tesla’s $1.4 trillion market capitalization might fall from selling pressure.
Alphabet (GOOG) traded over 3% lower in after-hours trading. Although its cloud revenue grew by 82%, investors did not like the high capital expenditure. It spent $44.92 billion, which might put pressure on GOOG stock this morning.
Alphabet posted Q2 GAAP earnings of $9.11. This figure included a $98 billion unrealized gain on equity securities. That included its equity gains in Anthropic and other investments. Anthropic is privately owned and has plans for an IPO.
ServiceNow (NOW) might open up by around 5% after its Q2 report. It posted non-GAAP EPS of $0.90. Revenue rose by 23.6% Y/Y to $3.98 billion. The strong results are in stark contrast to PegaSystems (PEGA). On Wednesday, PEGA stock lost 16% after the firm blamed unprecedented spending patterns in the AI market that caused its clients to delay buying their product. The sell-off also hurt UiPath (PATH) shares, which fell by 11% to close at $10.70.
Related Stories
