Quarterly results from two of the Magnificent Seven members will dictate the direction of Thursday’s stock market.
Meta Platforms (META) said it would split its shares two-for-one after posting third-quarter results. Revenue of $64.60 billion beat expectations of $63.37 billion. The revenue growth of 26% impressed investors. META shares traded at over $740 in after-hours trading before settling at around $700.
In Q4, Meta is expecting revenue in the range of $73 billion to $76 billion. The stock might struggle to rally today. The stock already rallied for weeks after the firm announced Meta Muse, an AI assistant.
Tesla (TSLA) traded down by around 3% last night after posting non-GAAP EPS of $0.48. Revenue of $28.05 billion is down 0.1% Y/Y. Unfortunately, its GAAP EPS of $0.22 annualizes to $0.88, which would translate to a P/E of over 400 times. More troubling is the capital expenditure cut. It fell from $5.79 billion in Q2 to $4.7 billion.
Investors are dumping EV names. Lucid Motors (LCID), Rivian (RIVN), Nio, XPeng (XPEV), and BYD (BYDDF) shares are trading near their 52-week lows.
Other companies that readers should watch are posting results this morning. They include Procter & Gamble (PG), Lockheed Martin (LMT), Nokia (NOK), Dow (DOW), and Blackstone (BX).
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