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Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News

Fernanda T
Latest News
April 10 2024 7:13AM

Delta Air Lines (NYSE:DAL) – Delta Airlines reported a first-quarter profit of $37 million, a significant increase compared to the $363 million loss from the previous year. With adjusted revenue of $12.56 billion, the company surpassed Wall Street expectations, attributing the success to strong demand for leisure and business travel, according to CEO Ed Bastian. The adjusted earnings per share were 45 cents, against the expected 36 cents. Delta predicted earnings of $2.20 to $2.50 per share for the second quarter, while analysts expect an average of $2.23 per share, according to LSEG.

Alphabet (NASDAQ:GOOGL) – Google launched new AI chips for data centers, including the Arm-based Axion, aiming to improve performance. These chips compete with Nvidia, with Axion offering 30% better performance than Arm chips and 50% over x86 chips. Google hopes to boost services like YouTube ads on Google Cloud with Axion soon.

Intel (NASDAQ:INTC) – Intel presented an updated version of its artificial intelligence chip, Gaudi 3, at the Vision event, aiming to compete with Nvidia (NASDAQ:NVDA) in the AI semiconductor market. Built with TSMC’s (NYSE:TSM) 5 nm process, it offers superior performance, crucial for meeting the growing demand for AI chips.

Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) – TSMC reported significant quarterly growth, driven by global demand for cutting-edge chips and servers for artificial intelligence. The company exceeded sales expectations, indicating a return to solid growth after weathering the post-Covid crisis. Quarterly revenue increased by 16%, reaching approximately NT$592.6 billion (about $18.5 billion), surpassing the average projection of NT$579.5 billion. The company forecasts at least 20% growth this year, with capital expenditures between $28 billion and $32 billion.

Nvidia (NASDAQ:NVDA) – After a 2% drop on Tuesday, the company’s shares entered a correction, marking a decline of at least 10% from its recent peak. Although they have fallen in five of the last six trading days, Nvidia’s shares still register a 72% increase throughout 2024. In pre-market trading, Nvidia shares retreated by 0.86%.

Boeing (NYSE:BA) – The FAA is investigating whistleblower allegations at Boeing about safety and quality concerns in 787 and 777 jets, as the company faces a crisis following the 737 MAX incident. The whistleblower faced threats as retaliation. Senate hearings and a U.S. Department of Justice investigation are underway.

Apple (NASDAQ:AAPL) – Apple has expanded its production in India, significantly increasing iPhone manufacturing, which now accounts for 14% of the total. This expansion aims to reduce the company’s dependency on China for its supply chain. In other news, Apple is broadening its presence in Miami by acquiring a new building in Coral Gables, south of the city. The company already has an office in the area, focusing on Latin America and advertising.

Microsoft (NASDAQ:MSFT) – On Tuesday, Microsoft announced a $2.9 billion investment over two years to expand its cloud and AI infrastructure in Japan. The investment includes training three million people in AI and a new Microsoft Research Asia lab in Tokyo.

Meta Platforms (NASDAQ:META) – Meta Platforms faces pressure to prevent AI content from harming elections. Nick Clegg of Meta states that, so far, they have not seen widespread use of these tools to disrupt elections. The company plans to label all AI-generated content.

NetEase (NASDAQ:NTES), Microsoft (NASDAQ:MSFT) – NetEase and Microsoft announced on Wednesday that they would bring popular titles, including “World of Warcraft,” back to China. The partnership aims to reestablish Blizzard Entertainment’s games, with NetEase resuming distribution, after a previous disruption. The move boosted NetEase’s shares by 1.1% in pre-market trading, as players await the return of beloved games.

Alibaba (NYSE:BABA) – Jack Ma, co-founder of Alibaba, expressed support for the company’s long-term restructuring in a lengthy memo to employees, after years of seclusion. Ma praised new leadership, acknowledging past mistakes and seeking to restore internal and external trust.

BlackBerry (NYSE:BB), Advanced Micro Devices (NASDAQ:AMD) – On Tuesday, BlackBerry announced a partnership with Advanced Micro Devices to launch a platform promising to enhance industrial and healthcare robotic capabilities. The collaboration will utilize BlackBerry’s ONX platform.

PriceSmart (NASDAQ:PSMT) – Shares of the warehouse club operator rose 4.7% in pre-market trading after announcing a 13% increase in fiscal second-quarter revenue, reaching $1.29 billion. Comparable merchandise sales grew by 8.8% during the period.

WD-40 (NASDAQ:WDFC) – In the fiscal first quarter, WD-40 reported quarterly earnings per share of $1.28, surpassing the $1.02 from the same period last year, while revenue rose 12%, totaling $140.4 million. During a conference call, CEO Steve Brass highlighted successful promotional campaigns in the U.S., Canada, China, and other markets, although multipurpose product sales volumes declined in Europe due to price increases. WD-40 raised its fiscal year earnings forecast, now seeing earnings in the range of $5 to $5.30 per share, compared to the previous projection between $4.78 and $5.15.

Smart Global Holdings (NASDAQ:SGH) – Shares of Smart Global Holdings fell 7.4% in Wednesday’s pre-market trading, following weaker-than-expected fiscal second-quarter results. The loss was $14.6 million, or 26 cents per share, with sales totaling $284.8 million, below Wall Street’s expectations. The company forecasts net sales between $275 million and $325 million and a loss per share of 7 cents, while analysts project a 5-cent per-share loss.

Honest Company (NASDAQ:HNST) – On Tuesday, the Honest Company announced the departure of Jessica Alba, its founder and chief creative officer. Known for her roles in movies like “Fantastic Four” and “Honey,” Alba started the company in 2012. She will continue to support the company as a board member while pursuing new ventures.

Illumina (NASDAQ:ILMN) – On Tuesday, Illumina announced that Chief Financial Officer Joydeep Goswami would leave the company, to be replaced by Ankur Dhingra, a former executive at Summit Therapeutics. Goswami, CFO since 2023, will serve as a consultant until June 30. Illumina reiterated its forecasts for the first quarter and 2024, after announcing the divestiture of Grail in December.

Philips (NYSE:PHG) – Philips confirmed its financial projections after reaching an agreement with the U.S. Department of Justice and FDA, allowing exports but restricting the sale of new respiratory devices in the U.S. Despite the restrictions, the company can perform maintenance and sell accessories. Philips shares rose 2.6% in Wednesday’s pre-market trading but have fallen 8.8% in the last 3 months. The FDA required a remediation plan and compliance with manufacturing practices. Philips expects additional costs, reiterating its financial projections.

Moderna (NASDAQ:MRNA) – Moderna’s shares reached a three-month high on Tuesday, buoyed by the positive response of its individualized cancer vaccine, developed in partnership with Merck (NYSE:MRK), in an initial study on head and neck cancer.

Novartis (NYSE:NVS) – Novartis plans to cut up to 680 jobs in its drug development division, with 440 positions being eliminated in Switzerland and up to 240 in the U.S. over the next two to three years. This is part of a separate restructuring that could affect up to 8,000 employees globally.

Pfizer (NYSE:PFE) – Pfizer announced that its respiratory syncytial virus (RSV) vaccine, Abrysvo, showed safety and efficacy in adults under 60 years, planning to seek approval for this age group. Experts are debating the need for vaccination in high-risk adults.

Tesla (NASDAQ:TSLA) – Tesla is in talks with Reliance Industries to start production in India. The discussions, in the early stages for a month, aim to localize in Maharashtra, potentially reserving $2 billion for its plans.

Lucid (NASDAQ:LCID) – Lucid exceeded delivery expectations in the first quarter, with 1,967 vehicles delivered against estimates of 1,745. However, production was 1,728 vehicles, below the estimates of 2,123 and compared to 2,391 in the previous quarter. Lucid plans to expand deliveries to Saudi Arabia and launch a mid-size car by the end of 2026, aiming for a competitive price of $50,000.

Shell (NYSE:SHEL) – Ben van Beurden, former CEO of Shell, stated on Tuesday that European oil and gas companies will increasingly struggle to compete with their U.S. counterparts due to the availability of capital and a more favorable investor attitude in New York. The current CEO, Wael Sawan, is considering moving the company’s listing from London to New York.

Goldman Sachs (NYSE:GS) – Telecommunication companies are turning to fiber securitizations to fund the growing data demand. According to Goldman Sachs, this financing is expected to exceed $5 billion this year. The emergence of these securitizations is driven by the need to rapidly expand fiber infrastructure in the U.S.

HSBC (NYSE:HSBC) – HSBC plans to rapidly expand its wealth business in China, aiming to nearly double its staff by next year. The strategy includes hiring more wealth managers and expanding private banking services in India. Despite economic challenges, the bank remains focused on Asia, capitalizing on growth opportunities in the region.

Barclays Plc (NYSE:BCS) – The Financial Conduct Authority (FCA) is investigating automotive financing practices, but Barclays appealed a decision by the UK Justice Provider, potentially delaying the process. The FCA plans to complete the review by September, but litigation might force a delay. Lloyds Banking Group Plc (NYSE:LYG) is also reviewing a similar decision.

Bank of Nova Scotia (NYSE:BNS) – The Bank of Nova Scotia acknowledged that the upcoming elections in the U.S. and Mexico bring political uncertainty, but stated it is prepared to navigate these volatile environments. With a presence in the U.S., Canada, and Mexico, the bank aims to strengthen regional ties as part of its “Mexico First” strategy.

MicroStrategy (NASDAQ:MSTR) – The recent appreciation of Bitcoin has not only boosted MicroStrategy’s shares but also increased the value of its convertible bonds. With the cost of refinancing rising, investors expect the company to convert these bonds into shares, given the significant intrinsic value.

EQT Corporation (NYSE:EQT) – EQT and its co-investors agreed to sell Rimes Technologies, a data management provider, to Five Arrows of Rothschild & Co. The deal, announced on Tuesday, awaits regulatory approvals and is expected to be completed in the coming months.

International Flavors & Fragrances (NYSE:IFF) – Shares of International Flavors & Fragrances rose 1.23% in pre-market trading after Citi upgraded its recommendation from “Neutral” to “Buy,” raising the target price from $81 to $100.

Cinemark Holdings (NYSE:CNK) – Growth projections for Cinemark are positive, according to analyst Mike Hickey of Benchmark. He predicts sequential growth after the first fiscal quarter of 2024 and significant growth in 2025 and 2026, driven by the return of major releases. The company also stands out for its robust liquidity and is well-positioned to expand its market share, taking advantage of the contraction of the U.S. cinema network post-pandemic. Benchmark rated Cinemark shares as “Buy,” with a target price of $22.

Comcast (NASDAQ:CMCSA) – Comcast recorded record advertising sales, totaling about $1.2 billion, for the upcoming Summer Olympics and Paralympics in Paris. Opening and closing ceremonies are sold out. Over $350 million came from new sponsors, and digital advertising also reached record numbers.