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Google smashes prediction and jumps more than 7% in after-hours trading |
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Google’s parent company Alphabet reported earnings yesterday and beat all expectations by posting revenue of $22.45 billion, $400 million over predictions. The tech giant’s cash flow increase was fueled by its search engine and its video streaming service YouTube. The report caused the company’s stock to skyrocket, going up more than 7% in after-hours trading. Following the impressive results, the company has announced a buyback of roughly $7 billion in shares. This report has given Google a leg-up in its continuing battle against fellow tech giant Apple, which failed to shake off its recent losses, despite launching three new MacBook computers yesterday. |
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U.S. market geared for GDP, more earnings reports |
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With the presidential elections less than two weeks away, and continuing talks of a possible rate hike by the Fed in December, investors on Wall Street will be eyeing Q3 GDP numbers to be released today at 12:30 GMT , which could have an effect on the USD and other currencies. As the week’s last trading day begins in the U.S. the market is expected to react to the GDP data, alongside more earnings reports. Amazon, which released its report after hours yesterday, has suffered losses of 6% in after-hours trading, after it said that operating income for Q4 may come in at zero. |
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Twitter to kill Vine and cut 9% of workforce |
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Social network Twitter is shifting its focus from user acquisition to increasing profits. As part of the move, the social media giant will trim its workforce by 9% and completely let go of its popular video platform Vine. Despite its recent earnings report beating predictions, Twitter’s revenue grew just 8.2%, as opposed to more than 50% in Q3 of last year. After major companies, such as Salesforce and Microsoft withdrew their acquisition bids, the company said that it is now taking steps to drive profitability in 2017. |
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Europe opens lower; Qualcomm makes big move in Holland |
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As the week’s last trading day opens in Europe, key indices opened on a low note. London’s FTSE was down 11 points, the German DAX was down 8 points and the French CAC down 99 points. Investors in Europe might still have a reason for optimism, as recent reports out of Belgium suggest that the CETA deadlock has been resolved and a free-trade agreement between the EU and Canada could move forward soon. At the same time, semiconductor powerhouse Qualcomm is reportedly buying out Dutch company NXP for a whopping $47 billion, with the aim of expanding into the automotive chip market. |
Google’s stock jumps 7%
