Tesla Surges After Surprise Profits; Amazon Shares Drop After Earning Miss
Yesterday was a day of surprises. Amazon shares sank after missing earnings expectations, while Tesla’s stock soared after surprising Wall Street with an unexpected profit.
“Amazon’s third-quarter earnings fell short of street expectations on Thursday, driving its stock down as much as 9% in after hours trading,” writes Eugene Kim of CNBC. “Amazon gave fourth-quarter revenue guidance in the range of $80.0 billion and $86.5 billion, far below the street’s average estimate of $87.4 billion, indicating the all-important holiday shopping season may be underwhelming.”
Investors were also apparently spooked by slight lower-than-expected quarterly sales reported by AWS, Amazon’s cloud business. AWS, writes Kim, “had $9 billion in quarterly sales, falling slightly below analyst expectations of $9.1 billion. In the third quarter, AWS operating income totaled $2.26 billion, up 9% from the year-ago period but below the $2.55 billion FactSet consensus estimate.”
With Tesla, however, it was a different story.
“Wall Street showed Tesla (TSLA) some love Thursday, handing shares of the electric automaker their biggest one-day pop since May 2013,” writes Alexis Christoforous of Yahoo Finance. “Investors applauded Tesla’s surprise third-quarter profit of $143 million and solid free cash flow. Most analysts were expecting another loss.”
Elon Musk, Tesla’s CEO and founder, was understandably elated by the news, calling it “unprecedented” on a call with analysts, writes Ben Winck of Markets Insider.
Google Claims a Key Victory in Quantum Computing
The race to build a practical quantum computer is in its early laps, but Google has already claimed the lead.
“Google says that its 54-qubit Sycamore processor was able to perform a calculation in 200 seconds that would have taken the world’s most powerful supercomputer 10,000 years. That would mean the calculation, which involved generated random numbers, is essentially impossible on a traditional, non-quantum computer,” writes Jon Porter in The Verge.
In a blog published earlier this week, IBM claimed that Google’s feat was overrated. According to IBM, Google failed to account for disk storage space in its estimate of how long it would take a classical computer system to perform the same calculation.
Twitter Shares Sink After Earnings Miss
Bugs and “headwinds” dragged Twitter stock down this week, and the company’s prospects for Q4 are looking lighter than expected.
“Twitter shares tanked as much as 20% in premarket trading Thursday after the company reported a third quarter plagued by product issues and advertising ‘headwinds.’ Platform bugs weighed on revenue and ultimately led the company to an earnings miss on the top and bottom lines,” writes Sara Salinas of CNBC.
Twitter is a pillar of social media, but it’s still not entirely clear what the future holds in terms of revenue and profit for the company.