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AMD Hits Regulatory Roadblock, GitLab’s Stock Tumbles on Disappointing Earnings, and Latest News

Fernanda T
Latest News
March 05 2024 6:05AM

GitLab (NASDAQ:GTLB)GitLab shares fell 23% in Tuesday’s pre-market after releasing quarterly results. The net loss in the fourth quarter was $37.6 million, or 23 cents per share, with adjusted earnings of 15 cents per share. Revenue increased to $163.8 million. The adjusted earnings projections for the full year were below analysts’ expectations.

Advanced Micro Devices (NASDAQ:AMD)AMD faces a hurdle from the US government in its attempt to sell an artificial intelligence chip to the Chinese market. American authorities deemed the chip too powerful and required a specific license as part of the export restrictions on advanced technologies.

Apple (NASDAQ:AAPL)Apple Inc.‘s iPhone sales in China plummeted 24% in the first six weeks of this year, according to independent research, raising concerns about the demand for the device. Huawei leads, while Apple faces a market share decline. Additionally, Apple launched two new MacBook Air models with M3 processors, aiming to attract consumers interested in upgrading to personal computers with AI capabilities. With 13 and 15-inch screens, the new models are up to 60% faster than their predecessor. On Monday, Apple was fined $2 billion by the EU for limiting music streaming competition in the App Store. The decision, which Apple will appeal, aims to prevent unfair business practices and includes a basic fine with a significant additional deterrent value. Elsewhere, a proposed $10.6 million settlement by Apple was approved by a judge of the Supreme Court of British Columbia. The settlement aims to resolve a class-action lawsuit over allegations of deliberate iPhone slowdown.

Amazon (NASDAQ:AMZN) – Elon Musk lost the title of the world’s richest person to Jeff Bezos, with the fall in Tesla‘s shares. Now, Musk has $197.7 billion, while Bezos holds $200.3 billion. Musk faces challenges, including the annulment of a salary package. Bezos leads the ranking for the first time since 2021.

Nikola (NASDAQ:NKLA)Nikola appointed executive Thomas Okray as CFO. Okray, with extensive experience at GM and Amazon, takes over immediately. The company projects the delivery of up to 350 hydrogen-powered electric trucks this year.

Tesla (NASDAQ:TSLA) – A fire at an electricity pole near Tesla‘s factory in Germany interrupted power, with suspicions of activist action. Police and firefighters are active, with no damage to the factory. Additionally, Tesla is in negotiations with the Thai government for a potential production facility. The government offered green energy, and the country has ambitions to become a leading electric vehicle production hub in the region. On Monday, Tesla shares fell more than 7%, after a 19% drop in February sales in China, affected by the Lunar New Year holidays. The decline in sales in its main market impacts the company’s global outlook, already challenged by decreasing demand and increasing competition.

Ford Motor (NYSE:F)Ford recorded a 10.5% increase in US sales in February, driven by demand for SUVs, pickups, and hybrid vehicles. Hybrid vehicle sales increased by 32%, while SUV sales grew by about 22%. Ford is focused on high-margin hybrid and gasoline vehicles, in response to slowing demand for electric vehicles. In recent months, it reduced the prices of the Mach E and production at the Michigan Rouge Electric Vehicle Center. Global sales rose to 174,192 units.

Toyota Motor (NYSE:TM) – On Tuesday, Toyota Motor announced a deal with Panasonic Holdings to transform one of its joint ventures into a wholly-owned subsidiary of the automaker. The Primearth EV Energy Co, responsible for producing batteries for electric and hybrid vehicles, will be expanded to include batteries for gasoline hybrids. The acquisition is scheduled to be completed by the end of March.

American Airlines (NASDAQ:AAL)American Airlines announced a record purchase of 260 aircraft from Airbus (USOTC:EADSY), Boeing (NYSE:BA), and Embraer (NYSE:ERJ) to meet growing demand for premium travel. The order includes options for an additional 193 aircraft, reflecting confidence in Boeing despite recent incidents. The first Boeing MAX 10 delivery is scheduled for 2028, with fleet flexibility and replacement options negotiated.

Boeing (NYSE:BA) – The Federal Aviation Administration revealed quality control issues in Boeing‘s 737 MAX production and that of Spirit AeroSystems (NYSE:SPR). The FAA did not detail the required corrections, but both companies are in communication to address the issues. The audit was triggered by an air emergency in January. Boeing is under pressure to implement significant improvements following recent incidents and previous FAA criticisms. Additionally, analysts say that Boeing‘s possible acquisition of Spirit AeroSystems, along with the delay in 737 MAX production increases, may help in supply chain management but won’t quickly resolve quality issues.

JetBlue Airways (NASDAQ:JBLU), Spirit Airlines (NYSE:SAVE)JetBlue Airways and Spirit Airlines canceled their $3.8 billion merger agreement after a US judge blocked the deal in January. The decision is a victory for the Biden administration, which contested the deal on antitrust grounds.

AeroVironment (NASDAQ:AVAV)AeroVironment exceeded expectations with third-quarter profits, driven by strong demand. Net profit reached $13.9 million, while revenue rose to $186.6 million. President Wahid Nawabi anticipates the company’s best year to date. Shares are up 18.4% in Tuesday’s pre-market.

Rio Tinto (NYSE:RIO)Rio Tinto CEO Jakob Stausholm predicts a continued increase in lithium demand for electric vehicle batteries but warns of price volatility. The company focuses on extraction technology, avoiding large acquisitions, and develops projects in Argentina and Serbia. Stausholm expects inflation moderation.

US Steel (NYSE:X) – According to Reuters, a senior executive at Nippon Steel said they would seek the support of the United Steelworkers union to acquire US Steel, confident the deal will be completed by September.

Valero Energy (NYSE:VLO) – The US refinery is joining the carbon capture and storage project of Iowa-based Summit Carbon Solutions. Valero will transport greenhouse gases from eight ethanol plants to capture 3.1 million metric tons of CO2 annually. The project now encompasses 57 ethanol production facilities in the Midwest but faces opposition from landowners concerned about potential damage and expropriation.

UnitedHealth Group (NYSE:UNH) – Hackers claim that UnitedHealth Group paid out $22 million to decrypt data locked by Blackcat ransomware. A cryptocurrency tracking company partially corroborated the claim. Large corporations often yield to these demands to restore their networks.

Walgreens (NASDAQ:WBA)Walgreens Boots Alliance CEO Timothy Wentworth dismissed reports that the company plans to sell the pharmaceutical unit Shields Health Solutions, stating they are focused on maximizing the business value.

Akero Therapeutics (NASDAQ:AKRO) – The latest data from Akero Therapeutics show promise against advanced liver fibrosis (NASH), exceeding previous expectations. While initial concerns about competitors shook the market, the results highlight the drug’s efficacy.

Grupo Aval (NYSE:AVAL)Grupo Aval, a Colombian financial conglomerate, reported an annual increase in net profit in the fourth quarter, reaching $21.03 million. Interest revenues grew up to 20.8%, but the financial margin fell by 13.3%.

Blackrock (NYSE:BLK) – The SEC postponed its decision on BlackRock‘s request for the Ethereum iShares fund. The fund, listed on Nasdaq if approved, would allow investors to track Ethereum’s price without purchasing the cryptocurrency.

Citigroup (NYSE:C)Citigroup warned of pullback risks as optimism in the US boosts technology stocks to their highest levels in three years, while other global markets also heat up. Strategists see signs of extreme stretching and one-sidedness in the markets, with concerns about emerging bubbles.

JPMorgan Chase (NYSE:JPM), Goldman Sachs Group (NYSE:GS) – Strategists at JPMorgan and Goldman Sachs are divided over the formation of a market bubble due to the strong recovery of US stocks this year. For JPMorgan‘s Marko Kolanovic, the rapid rise of stocks and Bitcoin signals a possible bubble, while Goldman‘s David Kostin argues that Big Tech’s high valuations are justified by solid fundamentals. The market continues to reach new highs, but critics warn of a possible correction, while optimists see room for further gains.

MicroStrategy (NASDAQ:MSTR)MicroStrategy faces a 10.2% drop in pre-market trading, after registering a 24% increase on Monday, driven by rising Bitcoin prices. After the market closed, MicroStrategy announced a proposal to issue $600 million in convertible debt, aiming to acquire more Bitcoin and for corporate purposes.

Paymentus Holdings (NYSE:PAY)Paymentus shares surged 16.5% in Tuesday’s pre-market, after exceeding fourth-quarter expectations. The profit was $9.4 million, and revenue rose to $164.8 million. The company expects revenues of up to $744 million in 2024.

Stitch Fix (NASDAQ:SFIX), ThredUp (NASDAQ:TDUP) – With still low demand for clothing, Stitch Fix and ThredUp seek to become more attractive destinations for customers, but forecasts disappoint investors. Stitch Fix shares fall 13.7% and ThredUp 8.5% in Tuesday’s pre-market. Both companies seek gradual transformation, emphasizing shopping experiences and using technology to improve customer interaction.

Target (NYSE:TGT), Costco (NASDAQ:COST), BJ’s (NYSE:BJ) – data reveals that visits to Target grew 1.6% in the fourth quarter of 2023, with significant peaks during the holidays. In January 2024, there was a 4.8% drop. Costco and BJ’s also faced declines in January after a solid quarter.