The U.S.-traded shares of Taiwan Semiconductor Manufacturing (TSMC) experienced a 2.4% decline despite exceeding revenue and profit projections in the first quarter. The company faced challenges due to an earthquake in Taiwan, resulting in the scrapping of some wafers. However, TSMC indicated that most of the lost production would be recovered in the second quarter. Moreover, the company remains optimistic about healthy growth in 2024 and has provided a revenue guidance of $19.6 billion to $20.4 billion for the second quarter.
Tesla saw a decrease of over 2% in its stock price following a downgrade by Deutsche Bank from buy to hold. The delay in Model 2 efforts raised concerns about the absence of new vehicles in Tesla’s consumer lineup, potentially impacting volume and pricing for an extended period. This downgrade added to the downward pressure on Tesla’s stock value.
In contrast, homebuilder D.R. Horton witnessed a 3.3% increase in its shares after surpassing expectations in its fiscal second quarter. The company reported earnings of $3.52 per share and revenue of $9.11 billion, outperforming analyst forecasts. This positive outcome reflected the strong performance and growth prospects of D.R. Horton in the market.
Alaska Air experienced a nearly 3% rise in its stock price following better-than-expected first-quarter results. The airline reported losses per share of 92 cents, lower than analysts’ estimates, and revenue of $2.23 billion, surpassing expectations. Alaska Air’s performance showcased resilience and efficiency in navigating challenges in the aviation industry.
Blackstone’s Dividend Adjustment
Despite a 2.2% decline in its stock value, asset manager Blackstone adjusted its dividend to 83 cents per share from 94 cents per share. The company’s earnings in the first quarter slightly exceeded consensus estimates at 98 cents per share. This dividend adjustment reflected Blackstone’s strategic financial decisions in response to market conditions.
Aluminum producer Alcoa witnessed a 2.4% increase in its stock price after beating first-quarter revenue expectations. However, the company reported a wider-than-expected loss of 81 cents per share, excluding items, which was higher than anticipated. This mixed performance by Alcoa highlighted challenges in managing costs and profitability in a competitive market environment.
EBay’s stock surged by nearly 4% after a double upgrade by Morgan Stanley to overweight from underweight, emphasizing its undervaluation compared to peer company Etsy. On the other hand, Etsy’s stock dropped almost 5% post a downgrade to underweight from equal weight by the same firm. The constrained margin expansion and medium-term growth outlook led to this downgrade, showcasing disparities in performance within the e-commerce sector.
Match Group experienced a 2% decline in its shares after a downgrade by Morgan Stanley to equal weight from overweight, citing slowing growth in online dating. This downgrade indicated concerns about the company’s future expansion and revenue generation potential in a competitive digital market landscape.
Health insurance company Elevance Health observed a 3.3% increase in its shares after reporting an earnings beat and raising its full-year guidance. The firm’s first-quarter earnings per share exceeded analyst estimates, demonstrating strong performance and financial stability. Despite slight revenue below expectations, Elevance Health’s positive outlook enhanced investor confidence.
Rosenblatt Securities’ Upgrade for Zoom Video Communications
Software company Zoom Video Communications witnessed a 2% increase in its stock price following an upgrade to buy from neutral by Rosenblatt Securities. The firm’s optimistic view on Zoom’s “refocused” channel strategy and robust balance sheet indicated growth prospects and stability in the competitive technology sector.