Shares of Meta Platforms (META) are plunging in premarket trading after the Facebook parent unnerved investors wary of its artificial intelligence (AI) spending plans; AI spending is the dominant theme uniting the three megatech firms—Microsoft (MSFT), Google parent Alphabet (GOOGL), and Intel (INTC)—reporting after the closing bell, while shares of IBM (IBM) are stumbling after the tech firm issued disappointing quarterly sales and said it will acquire cloud software maker HashiCorp (HCP) for $6.4 billion; Comcast (CMCSA) posted an earnings beat on a jump in Peacock subscribers; GE Vernova (GEV) results came up shy of forecasts in the company’s debut quarterly report; and mining giant BHP Group (BHP) is offering to buy rival Anglo American in a megadeal that is betting on copper’s continued gains. Stock futures were pointing lower as investors awaited the flurry of earnings reports as well the latest reading on U.S. economic growth, with the first-quarter GDP report set for release at 8:30 a.m. ET. Here’s what investors need to know today.
1. Meta Shares Plunge on Disappointing Guidance, AI Spending
Shares of Meta Platforms (META) were down 15% in premarket trading after the Facebook parent provided weak revenue guidance and announced plans to increase spending—news that sent the company’s shares sharply lower despite better-than-expected quarterly results. Chief Executive Officer (CEO) Mark Zuckerberg joined company executives on an earnings call that focused on artificial intelligence (AI), saying investment in the technology is necessary to “stay at the leading edge of this.” The company said it had raised its capital expenditures guidance for 2024 to between $35 billion and $40 billion, up from between $30 billion and $37 billion, due to “infrastructure investments to support our artificial intelligence (AI) roadmap.” The stock slump marks a stark contrast from Meta’s last quarterly results, when plans for its first dividend lifted shares.
2. Microsoft, Alphabet, and Intel to Post Quarterly Earnings After the Bell With AI in Focus
AI costs—especially after Meta’s spending spree—will be the dominant theme uniting the three megatech firms reporting quarterly results after the bell today: Microsoft (MSFT), Google parent Alphabet (GOOGL), and Intel (INTC). Investors will likely be watching Microsoft’s cloud segment growth and AI updates from its OpenAI partner when the company issues its fiscal third-quarter results. Alphabet’s first-quarter results are set to show year-over-year revenue and profit gains, with investors focused on whether the tech giant can sustain growth in its Google Cloud business as well as watching for updates on its in-house custom chip as hyperscalers reduce their reliance on Nvidia (NVDA). Intel, also posting first-quarter earnings, will be watched for updates on its foundry business and whether it can record revenue growth in its data center and AI operations. Meanwhile, shares of IBM (IBM) were down 9% in premarket trading after the computing and consulting giant confirmed late Wednesday it will acquire cloud software maker HashiCorp (HCP) for $6.4 billion and posted quarterly revenue that came in short of Wall Street expectations.
3. Comcast Posts Q1 Earnings Beat as Subscribers Flock to Peacock
Comcast (CMCSA) reported higher-than-forecast quarterly earnings, registering a 55% year-over-year jump in paid subscribers to its Peacock streaming service during the period. The company reported adjusted earnings per share of $1.04, up from 92 cents the same period last year, and beating expectations of 98 cents a share. Comcast added a net 3 million subscribers to Peacock in the first quarter, ending the period with 34 million. Revenue during the quarter rose 1.2% to $30.06 billion, topping analyst estimates of $29.87 billion. The company said it began showing “Oppenheimer” exclusively on Peacock in February and it was the most-watched paid movie in the streamer’s history. Shares were down less than 1% about 90 minutes before the opening bell.
4. GE Vernova Shares Slip After First Report as Standalone Company
GE Vernova (GEV) shares were off nearly 2% in premarket trading after the recently spun-off energy division of conglomerate General Electric posted debut quarterly results that were included earlier in GE Aerospace’s (GE) report. The wind-turbine maker reported a 6% year-over-year revenue rise to $7.3 billion, and a narrowing of its adjusted loss per share to 41 cents from $1.25 a share the same period last year, with both top- and bottom-line earnings missing analysts’ forecasts. GE Aerospace reported its first quarterly results earlier this week, with those numbers including GE Vernova figures.
5. Mining Giant BHP Bets on Copper With Bid for Anglo American
Mining giant BHP Group (BHP) has offered to buy rival Anglo American, which has a market capitalization of about $35 billion, in one of the industry’s largest transactions in years. In a deal that could reshape global mining, Anglo American said Thursday it had received an all-share offer from BHP, contingent upon it spinning off shareholdings in two South Africa-listed units, Anglo American Platinum and Kumba Iron Ore. The deal would bring together two of the industry’s largest miners at a time of soaring copper demand for renewable energy projects and electric vehicles as the world moves away from fossil fuels. Copper reportedly represents some 30% of Anglo American’s output before selling off the platinum and iron ore units as proposed by BHP, while BHP counts a majority stake in Chile’s Escondida, the world’s biggest copper mine, among its assets. BHP shares traded in New York were down about 2.5% in premarket trading.
