AudioEye’s (AEYE) recent earnings beat may have excited investors, but a closer look reveals a less appealing picture. The company’s modest outlook improvements and intricate financials, including substantial stock-based compensation, raise concerns. With many undervalued opportunities available in the market, I remain cautious about AEYE and believe it’s not a compelling investment at its current valuation.
Meta Platforms (NASDAQ: META), the parent company of Facebook, Instagram, and WhatsApp, will report its first-quarter earnings after the market closes today. Analysts expect the social media giant to deliver strong results, with revenue projected to reach $36.223 billion, a 26.5% year-over-year increase, and earnings per share to jump from $2.20 to $4.36. However, uncertainties remain around the company’s Metaverse project and the upcoming US Presidential election.
Analysts are weighing in on a range of stocks, including Tesla, Airbnb, and Walmart, as companies release earnings and provide updates on their businesses. Here are some of the most notable calls from Wall Street analysts on Wednesday:
– Piper Sandler upgrades SmartFinancial to overweight from neutral, citing potential benefits from declining interest rates.
– Bernstein reiterates Tesla as underperform, expressing concerns over the lack of clear catalysts for the company.
– Mizuho upgrades Airbnb to buy from neutral, highlighting positive catalysts for the vacation rental company.
– KBW upgrades Globe Life to outperform from market perform, recommending investors buy the dip in shares.
– Bank of America upgrades Tesla to buy from neutral, seeing potential for growth and positive catalysts.
– Wells Fargo upgrades Packaging Corporation of America to overweight from equal weight, recognizing the company’s strong performance.
– Citi downgrades Molson Coors to sell from neutral, expressing concerns about slowing growth.
– Oppenheimer names Domino’s a top pick, citing strong sales performance and potential for continued growth.
– Deutsche Bank upgrades MSCI to buy from hold, recommending the stock based on valuation metrics.
– Citi upgrades SiriusXM to neutral from sell, indicating a more balanced risk-reward outlook.
– KeyBanc initiates Super Micro as sector weight, giving it an equal weight rating based on valuation.
– Loop upgrades Sea Limited to buy from hold, seeing signs of sustainable profitable growth.
– Morgan Stanley reiterates Walmart as overweight, emphasizing the company’s fintech initiatives.
– Citi reiterates Amazon as buy, raising its price target due to strong demand for cloud services.
– Redburn Atlantic Equities reiterates Disney as sell, maintaining its negative view despite a higher price target.
– Morgan Stanley reiterates Atlanta Braves as equal weight, updating its valuation based on recent news.
– Guggenheim downgrades Enphase to sell from neutral, citing concerns over inventory issues.
– Jefferies reiterates Microsoft as buy, expecting positive results from upcoming earnings.
Before the market opens, several companies are making headlines due to their latest financial results and analyst upgrades. Boeing shares soared 3% after reporting a narrower-than-expected loss and exceeding revenue expectations. Airbnb gained nearly 2% following an upgrade by Mizuho, which cited potential catalysts for growth. Biogen surged over 6% after posting strong earnings, driven by cost-cutting efforts and higher sales of its Alzheimer’s drug. Tesla shares jumped 12% after CEO Elon Musk announced plans for a new affordable EV model by early 2025, despite disappointing first-quarter earnings. Visa rose 2% following stronger-than-expected revenue in the second fiscal quarter. Texas Instruments outperformed expectations, sending its stock up 6.8%. Sea Limited advanced 3.2% after an upgrade from Loop Capital, citing a shift towards sustained profitability. Mattel’s stock gained 2.7% after reporting narrower-than-expected losses per share. However, Enphase Energy declined nearly 7% due to an earnings miss and downbeat revenue outlook for the current quarter.
Tesla, Inc. (TSLA) shares jumped 10.6% to $160.01 in pre-market trading despite posting weaker-than-expected earnings and sales results for its first quarter. The electric vehicle giant also announced plans to accelerate the launch of new models. Gains were also seen in shares of Chicken Soup for the Soul Entertainment, Inc. (CSSE), Zapata Computing Holdings Inc. (ZPTA), WiMi Hologram Cloud Inc. (WIMI), InMed Pharmaceuticals Inc. (INM), AudioEye, Inc. (AEYE), ABVC BioPharma, Inc. (ABVC), Pineapple Energy Inc. (PEGY), Tungray Technologies Inc. (TRSG), and Texas Instruments Incorporated (TXN).
Losers in pre-market trading included Evotec SE (EVO), Bluejay Diagnostics Inc (BJDX), Mawson Infrastructure Group Inc (MIGI), Complete Solaria Inc (CSLR), Tiziana Life Sciences Ltd – ADR (TLSA), Ostin Technology Group Co Ltd (OST), Neo-Concept International Group Holdings Limited (NCI), Nukkleus Inc (NUKK), Equinox Gold Corp. (EQX), and Enphase Energy, Inc. (ENPH).
Reckitt’s shares have rebounded after the consumer goods giant reported better-than-expected sales for the past quarter. The company’s performance was driven by strong growth from brands like Dettol, Durex, and Finish. However, the firm’s nutrition division continued to struggle, facing legal challenges and declining sales. Despite these setbacks, Reckitt remains confident in its ability to deliver value for shareholders through investment and innovation.
Oppenheimer senior research analyst Colin Rusch provides insights into Tesla’s recent quarterly earnings, growth trajectory, Elon Musk’s long-term vision, and shifting customer base.
Ahead of Microsoft’s earnings release on April 25, Jefferies analysts anticipate a conservative guidance from the tech giant. Despite expected headwinds, they project 14% year-over-year constant currency growth for the third quarter, aided by contributions from the Activision Blizzard acquisition. The analysts highlight the gradual adoption of artificial intelligence (AI) as a key growth driver for Microsoft, with material benefits anticipated by 2025. They emphasize the strong demand for Azure AI services and the progress towards Microsoft’s $10B AI annual recurring revenue goal in F4Q.
Toy company Hasbro has reported better-than-expected earnings for the first quarter of 2023. Earnings per share (EPS) came in at $0.61, exceeding analyst estimates of $0.28. Revenue also surpassed expectations, reaching $757.3 million compared to consensus estimates of $749.48 million. Hasbro’s stock price responded positively, closing at $58.14 and showing gains of 13.75% over the past three months and 13.91% over the past year.
U.S. refiners are expected to report lower profits in the first quarter of this year compared to the record-breaking earnings they enjoyed in recent quarters, primarily due to disruptions caused by the Russia-Ukraine war and heavy refinery maintenance. However, analysts anticipate that earnings will improve in the coming months as demand for refined products picks up during the summer driving season.
