Tesla stock rose nearly 10% in pre-market trading despite a sales miss in the first quarter of 2024, a sharp decline in profits, and a recall of recently launched cars.
The electric vehicle (EV) maker said on Tuesday it had made a profit of $1.13 billion (£910 million) in the first three months of this year, compared with $2.51 billion in the same period last year.
The company said it will begin production next year and “accelerate the launch of new models, including more affordable models.”
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Tesla announced that it plans to cut more than 6,000 jobs at its locations in Texas and California.
Facebook owner Mehta is scheduled to report first-quarter results after the U.S. market closes this Wednesday.
Analysts surveyed by FactSet expected Meta to earn $4.32 per share on revenue of $36.1 billion in the first quarter, compared with earnings of $2.20 per share in the year-ago period. The high was $28.6 billion.
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In February, Meta reported fourth-quarter adjusted earnings per share of $5.33 on revenue of $40.1 billion. Wall Street had expected adjusted earnings per share of $4.94 and revenue of $39 billion.
Meta stock is up more than 130% in the past year and more than 39% since the beginning of the year, driven by the artificial intelligence boom.
Spotify (Spot)
Spotify Technology announced first-quarter financial results on Tuesday, with both sales and bottom line profits exceeding expectations.
The music streaming company reported a net profit of 197 million euros on revenue of 3.6 billion euros in the three months to the end of March. In the same period last year, the company had a loss of 225 million euros on revenue of 3 billion euros.
Much of Spotify's profits came from its podcast business. Gross profit margin for the quarter rose to 27.6% from 25.2% in the same period last year.
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Spotify is raising prices and experimenting with different subscription plans to increase revenue.
Spotify currently has 615 million users, and premium membership rose 14% to 239 million in the first quarter, in line with expectations.
Reckitt Benckiser (RKT.L)
Consumer goods group Reckitt Benckiser led the FTSE 100's (^FTSE) gains on Wednesday, beating analyst expectations.
Revenue rose 1.5% to £3.7bn in the first three months of the year, beating analysts' expectations of 0.9%, driven by higher volumes for brands such as Dettol, Durex and Finish.
Reckitt's underlying sales rose 1.5% over the past three months, compared to analysts' expectations for a 0.9% increase.
“We continue to benefit from carryover pricing and consumer-driven premium innovation,” CEO Chris Licht said.
Underlying sales in the Nutrition division fell 9.9% to £591m, more than offsetting a 7.1% increase in Hygiene and a 1% increase in Health.
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The company is attracting attention due to concerns about its powdered milk business. Shares have fallen by more than a quarter since an Illinois jury ruled that Reckitt failed to warn about the risk of necrotizing enterocolitis (NEC) from its milk-based Enfamil Premature 24 product.
“Reckitt Benckiser's price has plummeted by nearly a third since February on the back of poor fourth-quarter results and lawsuits facing the infant formula brand,” said Adam Vettese, an analyst at investment platform eToro. To say it's been a tough year for Reckitt Benckiser would be a huge understatement, given what's going on.” . That said, while many shareholders may have been bracing themselves for the fallout this morning, the results actually provide a well-timed reprieve. ”
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