Nvidia (NVDA)
Shares of chipmaker Nvidia fell in after-hours trading after the company reported second-quarter earnings that beat expectations and were the smallest in six quarters.
Chipmaker Nvidia's shares fell nearly 7% in premarket trading despite the company reporting second-quarter figures after U.S. markets closed on Wednesday that showed better-than-expected sales and profits.
The company, a global leader in semiconductor design and software, reported second-quarter revenue of $30bn (£22.7bn), compared with analysts' expectations of $28.8bn.
“Nvidia has grown to a point where it cannot afford to fail, and any signs of slowing or normalizing growth would have a significant impact on the stock price,” said Ben Ballinger, technology and media analyst at Quilter Cheviot.
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“This was the smallest estimate exceedance in the last six quarters, and the weakening gross margin and cost outlook was enough to hit the sell button in after-hours trading.”
Tech stocks led U.S. markets lower on Wednesday as investors awaited long-awaited earnings reports, with the tech-heavy Nasdaq Composite Index (^IXIC) closing down 1.1%.
Salesforce (CRM)
Software company Salesforce reported second-quarter results after the U.S. market closed on Wednesday, reporting revenue, operating margins and profits that beat Wall Street expectations.
Salesforce reported second-quarter net sales of $9.33 billion, beating expectations of $9.23 billion.
The stock rose 5% in after-hours trading.
Second-quarter sales rose 11 percent in Europe, 16 percent in Asia Pacific and 8 percent in the Americas, marking a turnaround from the previous quarter, when the company missed sales expectations for the first time since 2006.
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“I think what a lot of people are excited about right now is that adjusted operating margins beat expectations,” Third Bridge analyst Charlie Miner told Yahoo Finance.
The company also reported adjusted operating margin of 33.7%, beating expectations of 31.94%.
“Over the past six quarters, Salesforce has been completely focused on profitability, and this cannot be overlooked, especially as (revenue) growth slows to single digits for only the second time in the company's history,” Miner said.
Berkshire Hathaway (BRK-B)
Shares in Warren Buffett's company were trending higher in pre-market trading after its market capitalisation reached $1 trillion (£756 billion), making it the first US company outside the technology sector to reach the milestone.
The trillion-dollar milestone came just two days before the “Oracle of Omaha” turned 94.
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Berkshire Hathaway is made up of a $285 billion stock portfolio that Buffett has built over 60 years, making him one of the richest people in the world.
Berkshire Hathaway has been selling off shares in recent months. It reduced its stake in Apple (AAPL) by 50% last quarter, and on Tuesday said it sold about 25 million shares of Bank of America (BAC) for nearly $1 billion.
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Berkshire's insurance, energy, manufacturing, retail and services businesses generated $22.8 billion in profit in the first half of this year, up 26% from a year ago.
Topping the list of most valuable companies are Apple, Nvidia, and Microsoft (MSFT), all with market caps over $3 trillion. Other companies trading above $1 trillion include Alphabet (GOOG), Amazon (AMZN), and Meta (META).
Super Microcomputer (SMCI)
Shares of the AI server maker plunged more than 19% in trading on Wednesday and were down about 7% in premarket trading after the company said it would delay filing its annual report.
“SMCI is not able to file its annual report within the required time frame without undue effort or expense,” the company said. “Additional time is needed for SMCI's management to complete its evaluation of the design and operating effectiveness of its internal control over financial reporting as of June 30, 2024.”
The announcement came a day after short-seller Hindenburg Research released a report saying it found “clear accounting red flags” and other issues at the company.
JPMorgan analysts said some of Hindenburg's claims were “difficult to verify” and that the report “contains few details about the company's alleged wrongdoing.”
Hindenburg Research said its three-month investigation found “evidence of undisclosed related-party transactions, sanctions and export control deficiencies and customer issues.” The firm disclosed on Tuesday that it had taken a short position in Supermicro.
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