Taiwan Semiconductor Manufacturing's U.S.-traded shares experienced a 2.4% decline despite surpassing revenue and profit expectations in the first quarter. The company reported minimal structural damage from an earthquake in Taiwan earlier in April, although there were some wafers that had to be discarded. However, the management assured that most of the lost production would be recovered in the second quarter. Additionally, TSMC provided a positive outlook by forecasting healthy growth in 2024 and guiding second-quarter revenue in a range between $19.6 billion and $20.4 billion.
Electric vehicle maker Tesla saw a decrease of more than 2% in its shares after a Deutsche Bank downgrade from a buy to a hold rating. The bank's concerns revolved around the delay of Model 2 efforts, which poses a risk of having no new vehicle in Tesla's consumer lineup for the foreseeable future. This, in turn, could exert continued downward pressure on Tesla's volume and pricing for many more years.
D.R. Horton, a homebuilder, witnessed a 3.3% jump in shares after exceeding expectations in its fiscal second quarter. The company reported earnings of $3.52 per share and revenue of $9.11 billion, surpassing analysts' forecasts of $3.06 per share and $8.27 billion in revenue.
The airline company Alaska Air experienced a nearly 3% increase in its stock following better-than-expected first-quarter results. The losses per share of 92 cents, excluding items, were lower than analysts' estimates of $1.05. Moreover, the revenue of $2.23 billion exceeded the projected $2.19 billion.
Asset manager Blackstone faced a 2.2% decline in its stock after reducing its dividend to 83 cents per share from 94 cents per share. However, the first-quarter earnings came in at 98 cents per share, slightly higher than the consensus estimates of 96 cents.
The aluminum producer Alcoa saw a 2.4% gain in its stock after surpassing first-quarter revenue expectations by posting $2.6 billion in revenue, which exceeded the consensus estimate of $2.56 billion. On the flip side, the company reported a wider-than-expected loss of 81 cents per share, excluding items, compared to the anticipated loss of 55 cents per share.
E-commerce giant eBay's shares rose by nearly 4% following a double upgrade by Morgan Stanley to overweight from underweight. The firm views eBay as undervalued relative to its competitor Etsy, leading to the positive rating.
On the contrary, e-commerce platform Etsy experienced a decline of almost 5% after Morgan Stanley downgraded its stock to underweight from equal weight. The firm expressed concerns about margin expansion constraints and a bearish outlook on Etsy's medium-term growth.
Match Group's shares slipped by nearly 2% following a downgrade by Morgan Stanley to equal weight from overweight. The firm attributed the downgrade to slowing growth in online dating, a key area of Match Group's business.
Health insurance company Elevance Health's shares climbed 3.3% after reporting an earnings beat and raising its full-year guidance. The firm exceeded expectations by posting $10.64 earnings per share, excluding items, in the first quarter, although revenue fell slightly below estimates.
Software company Zoom Video Communications witnessed a rise of about 2% after Rosenblatt Securities upgraded its stock to buy from neutral. The firm expressed optimism about Zoom's “refocused” channel strategy and its healthy balance sheet.
The pre-market movements of these notable companies reflect a mix of positive and negative news, reflecting the dynamic nature of the stock market. Investors should carefully assess the reasons behind these price fluctuations and make informed decisions based on thorough analysis and risk management strategies.