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Temu’s parent company PDD soars above fourth-quarter profit
47 minutes ago
American Depositary Receipts (ADRs) of PDD Holdings (PDD), the parent company of many companies including online discount retailer Tem, rose on Wednesday morning after strong fourth-quarter results.
PDD had quarterly sales of CNY 88.88 billion ($12.52 billion), adjusted net income of CNY 25.48 billion ($3.59 billion), and adjusted earnings per share (EPS) of CNY 17.32. ($2.40), both of which significantly exceeded analyst expectations compiled by Visible Alpha. .
As Temu has grown significantly in the U.S., PDD has seen revenue and net income more than double year-over-year, and Wednesday’s earnings report shows that Temu has had multiple commercials during America’s biggest night of television, the Super Bowl. This is the first report for PDD since it aired.America
Jefferies analysts reiterated their “buy” rating on PDD in a post-earnings note, with a price target of $157.
PDD’s ADR was up about 2.4% late Wednesday morning. It’s down about 10.5% so far this year, but has increased more than 65% in the past 12 months.
-Aaron McDade
Boeing’s CFO predicts cash burn and negative profits due to 737 issue
1 hour 26 minutes ago
Boeing (BA) stock is on track to take significantly more cash than previously expected in the first quarter, as the jet maker’s chief financial officer says the company grapples with the fallout from January’s Alaska Airlines incident and subsequent investigation. It rose on Wednesday after the company said it would spend more.
Brian West told attendees at the Bank of America conference in London that he expects first-quarter cash outflows to be between $4 billion and $4.5 billion, an increase the company had previously forecast. It exceeded my expectations. He said the gap is unlikely to be closed for the rest of the year, and full-year free cash flow will be in the low single digits.
Mr. West said the increased outflows would also delay the company’s goal of reaching $10 billion in annual cash flow in 2025 or 2026.
West also predicted that Boeing’s commercial division’s operating profit margin would be down about 20% in the first quarter. He said margins would improve throughout the year, but were likely to remain negative for the full year.
Boeing has decided to limit production of the 737 MAX to fewer than 38 planes a month, and “the effects of that will be felt in the coming months,” West said.
The U.S. Federal Aviation Administration said in January that Boeing’s 737 MAX, operated by Alaska Airlines, was investigating Boeing’s safety practices following an accident in early January in which a Boeing 737-9 MAX operated by Alaska Airlines lost part of its fuselage shortly after takeoff. The expansion of production was prohibited.
Regarding Boeing’s potential acquisition of Spirit AeroSystems (SPR), a supplier spun off from Boeing in 2005, West said the companies believe the acquisition would be “in the best interest of safety and quality for the aerospace industry.” He said he felt it. He also insisted that the acquisition would be financed with cash and debt rather than equity.
Up to $8.5 billion in Chip Act subsidies lifts Intel stock
2 hours 14 minutes ago
Intel Corp. (INTC) stock rose in early trading Wednesday after the White House announced the chipmaker had received up to $8.5 billion in funding from the CHIPS Act to expand production in the United States.
“This announcement will support the construction and expansion of Intel facilities in Arizona, Ohio, New Mexico, and Oregon, creating nearly 30,000 jobs and supporting tens of thousands of indirect jobs,” the White House said in a statement. ” he said.
In a separate statement, the Commerce Department said Intel expects to invest more than $100 billion in the U.S. over the next five years as it expands production and capacity in these four states.
Intel also could receive an additional $11 billion in financing from the CHIPS and Science Act passed in 2022. The law is aimed at growing U.S. manufacturing in key industries such as chipmaking amid heightened geopolitical tensions with China.
Intel shares rose 0.7% Wednesday morning, but are down about 15% this year.
-Fatima Atalwala
Stocks that move significantly in early trading
2 hours 54 minutes ago
Profit:
- PDD Holdings (PDD): Shares of the Chinese e-commerce company soared more than 16% after fourth-quarter sales and profits beat analysts’ expectations.
- Chipotle Mexican Grill, Inc. (CMG): Shares of the fast-casual restaurant chain rose 5% after the company announced its board of directors approved a 50-1 stock split.
- Intel Corporation (INTC): The company’s stock rose about 3% after the White House awarded the company $8.5 billion in CHIPS Act grants to expand its U.S. manufacturing capacity.
loss:
- Nasdaq Inc. (NDAQ): The stock exchange and trading services company’s stock price fell 4% after its largest shareholder, Dubai Stock Exchange, announced it would sell a third of its shares for about $1.6 billion. It fell more than that.
- Super Micro Computer Inc. (SMCI): Shares of the IT and computer products company fell more than 2% to about $890 after announcing an initial public offering price of $875 yesterday.
- Boeing Co. (BA): The company’s CEO said that the operating margin of its airliner division would drop to -20% in the first quarter due to the Alaska Airlines door plug scandal that occurred in January. The stock price fell nearly 2%.
Stock futures are mixed ahead of Fed interest rate decision
4 hours 1 minute ago
Futures contracts tied to the Dow Jones Industrial Average fell about 0.1% in premarket trading Wednesday.
S&P 500 futures rose little from Tuesday’s close.
Nasdaq 100 futures were trading 0.2% higher about an hour before the market opened.
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