After selling off yesterday by falling 7.58%, the semiconductor star NXP Semiconductors (NXPI) may bounce back. The firm posted Q3 revenue guidance of up to $3.35 and diluted EPS of $2.60 - $3.01. Analysts expected an EPS of $3.60.
NXPI stock has major headwinds, as declines everywhere and a lack of targeting in the AI market limit its growth.
In the communications sector, Comcast (CMCSA) will continue to trade in its $37 - $41 trading range today. The firm posted revenue of $29.69 billion (-2.7% Y/Y). CEO Brian Roberts said that the firm faced tough comparable performance. Last year, it released The Super Mario Bros. Movie. This generated $1.36 billion in box office ticket sales. Markets also worry about Peacock losing $348 million in adjusted EBITDA.
In the music sector, Spotify (SPOT) may add to its ~ 12% gains from Tuesday. The firm posted revenue surging by 20% in Q2. For Q3, Spotify expects to add 13 million monthly active users. SPOT stock is expensive for a reason. It has a compelling product that keeps improving. Customer retention is high but loyalty is higher. The firm has customers willing to pay more for the product offering. Profitability will increase as management achieves cost efficiencies.
