5 Things to Know Before the Stock Market Opens

News of the day for October 30, 2024

Google parent Alphabet (GOOGL) shares are jumping in premarket trading after the tech giant beat earnings estimates on surging cloud revenues; Eli Lilly (LLY) shares are tumbling after its results missed the mark; Advanced Micro Devices (AMD) stock is sinking after its net income and sales guidance disappointed investors; shares of Chipotle Mexican Grill (CMG) are dropping after its same-store sales outlook came in below expectations; and Microsoft (MSFT) and Meta (META) shares are rising ahead of their earnings reports after the close. Here’s what investors need to know today.

1. Google Stock Rises on Strong Earnings, Cloud Revenue Growth

Shares of Google parent Alphabet (GOOGL) are up 6% in premarket trading after the tech giant reported better-than-expected third-quarter earnings. Alphabet’s revenue climbed 15% year-over-year to $88.27 billion and net income came in at $26.3 billion, or $2.12 per share, beating consensus expectations of analysts polled by Visible Alpha. Google Cloud delivered revenue of $11.4 billion, exceeding projections and representing 35% growth from the year-ago period as demand for artificial intelligence (AI) surged.

2. Eli Lilly Stock Tumbles as Results Fall Well Short of Estimates

Shares of Eli Lilly (LLY) are sinking 10% in premarket trading after it reported third-quarter revenue and net income that were well short of analysts’ estimates. Lilly reported a profit of $970.3 million, or $1.07 per share, well below the $1.69 billion and $1.87 per share analysts were projecting. Adjusted earnings per share (EPS) of $1.18 was barely half of the expected $2.18. Weight-loss drugs Mounjaro and Zepbound continue to boost Eli Lilly’s sales, with its revenue of $11.44 billion coming in above last year’s $9.50 billion, although below the $12.18 billion consensus.

3. AMD Stock Plummets After Earnings Miss, Soft Guidance

Advanced Micro Devices (AMD) shares are falling 8% in premarket trading after the chipmaker reported weaker-than-expected net income and guidance for the fourth quarter. While the company’s third-quarter revenue grew 18% year-over-year to $6.82 billion, ahead of expectations, its net income of $771 million, or 47 cents per share, was below projections. AMD said it expects fourth-quarter revenue of between $7.2 billion and $7.8 billion, with the midpoint below analysts’ consensus of $7.6 billion.

4. Chipotle Stock Sinks as Sales Outlook Disappoints Investors

Chipotle Mexican Grill (CMG) shares are falling 6% in premarket trading after the restaurant chain reported a weaker-than-expected sales forecast. Chipotle said it expects to see 2024 same-store sales increase in the mid- to high-single-digit range, while analysts were anticipating a 7.5% growth rate, according to Visible Alpha. The chain’s revenue of $2.79 billion met expectations, while its net income of $387.4 million beat estimates. 

5. Investors Await Microsoft, Meta Earnings

Shares of Magnificent Seven firms Microsoft (MSFT) and Meta Platforms (META) are trading higher in premarket trading ahead of their scheduled earnings releases after markets close today. Microsoft stock is up by 2% ahead of its earnings report, which is expected to show the tech giant deliver a 14% jump in quarterly revenue. Facebook parent Meta, whose shares are also higher by 2%, is expected to register revenue growth of 18%. Earnings from Apple, Amazon, and Intel are scheduled for Thursday.