Several companies were making headlines before the trading day, with Taiwan Semiconductor Manufacturing reporting a 2.4% drop in U.S.-traded shares despite beating revenue and profit expectations in the first quarter. The company stated that there was no structural damage from the earthquake in Taiwan in April, but some wafers had to be scrapped. TSMC expects to recover most of the lost production in the second quarter and forecasts healthy growth in 2024. Tesla’s shares were down over 2% after a downgrade from Deutsche Bank, citing risks related to delays in Model 2 efforts impacting the company’s consumer lineup.
D.R. Horton, a homebuilder, saw their shares jump 3.3% after topping expectations in its fiscal second quarter. The company earned $3.52 per share with revenue of $9.11 billion, surpassing analysts’ forecasts. Alaska Air’s stock rose nearly 3% following better-than-expected first-quarter results, with losses per share lower than estimates and revenue exceeding expectations. On the other hand, Blackstone’s shares slipped 2.2% after lowering its dividend and posting earnings slightly higher than consensus estimates. Alcoa gained 2.4% after beating revenue expectations but posting a larger than expected loss per share.
Shares of eBay rose nearly 4% after a double upgrade from Morgan Stanley to overweight, citing the company as undervalued compared to its peer, Etsy. However, Etsy’s stock slumped nearly 5% following a downgrade by Morgan Stanley to underweight, with concerns about margin expansion constraints. Match Group saw shares slip almost 2% after a downgrade from Morgan Stanley, which cited slowing growth in online dating. Elevance Health’s shares climbed 3.3% after reporting an earnings beat and raising full-year guidance, despite revenue coming in slightly below estimates.
Zoom Video Communications rose approximately 2% after an upgrade to buy from Rosenblatt Securities, highlighting optimism about the company’s “refocused” channel strategy and healthy balance sheet. Overall, the pre-market activity of these companies reflected a mix of positive earnings surprises, analyst upgrades, and downgrades, impacting share prices in various ways. Investors will be closely monitoring these companies as they continue to navigate market dynamics and deliver on their financial performance expectations going forward.
