Higher Costs Drop Streaming Stock

Good morning Wake-up Watchlisters! While you’re sipping coffee you’ll see stock futures edged higher on Tuesday ahead of earnings from tech giants Microsoft and Google. Those two reports should set the tone for the markets. Also, updates on artificial intelligence will be on investor’s minds as AI has propelled the soaring tech stock rally in the first half of 2023.

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Here’s a look at the top-moving stocks this morning.

Spotify Technology (NYSE: SPOT)

Spotify is down 6.62% premarket after reporting second-quarter earnings before the bell on Tuesday that missed expectations as gross margins declined despite subscribers surging in the quarter. Monthly active users beat estimates of 530 million to hit 551 million, but higher costs caused investors to worry over consequences for subscribers.

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Nio, Inc. (NYSE: NIO)

Nio is up 2.64% premarket after news that the Chinese government is looking to spur growth of clean businesses. The National Development and Reform Commission (which is a government agency responsible for economic development in China), said it’s interested in bringing private capital to assist in the development of major projects throughout the nation. The electric vehicle company also closed an equity investment of nearly $740 million from CYVN investments.

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F5 Inc. (NYSE: FFIV)

F5 Inc. is up 11.14% premarket after topping revenue estimates. The company came out with quarterly earnings of $3.21 per share, beating the Zacks Consensus Estimate of $2.86 per share. This compares to earnings of $2.57 per share a year ago. The result represents an earnings surprise of 12.24%.

General Electric (NYSE: GE)

General Electric is up 4.54% premarket after topping revenue estimates. The company cited improving aerospace supply chains as the reason for the increase. Analysts expected GE earnings per share of 46 cents on revenue of $14.762 billion, but GE earnings came in 68 cents a share, with revenue of $16.7 billion or adjusted revenue of $15.9 billion. Orders surged 59% to $22 billion.

Those are the biggest stock movers for today.

Happy trading!

The Wake-Up Watchlist Research Team

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