{"id":71813,"date":"2023-10-26T09:02:37","date_gmt":"2023-10-26T13:02:37","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=71813"},"modified":"2023-10-26T09:02:37","modified_gmt":"2023-10-26T13:02:37","slug":"coffee-with-greta-meta-drags-down-tech","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/10\/26\/coffee-with-greta-meta-drags-down-tech\/","title":{"rendered":"Coffee With Greta: Meta Drags Down Tech"},"content":{"rendered":"

DJIA Futures: <\/b>-27 (-0.1%)<\/span><\/p>\n

SPX Futures: <\/b>-16 (-0.4%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-86 (-0.6%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are sliding as Meta\u2019s ad-revenue warning drags on tech stocks.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Meta Slips On Ad Revenue Warning<\/span><\/h2>\n

Meta Platforms <\/b>(META) shares are down 3.7% ahead of the open despite crushing Q3 expectations.\u00a0<\/span><\/p>\n

Here\u2019s how the social media giant\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

    \n
  • EPS: $4.39 vs $3.63 expected<\/span><\/li>\n
  • Revenue: $34.15 billion vs $33.56 billion expected<\/span><\/li>\n
  • Daily active users: 2.09 billion vs 2.07 billion expected<\/span><\/li>\n
  • Monthly active users: 3.05 billion, as expected<\/span><\/li>\n
  • Average revenue per user: $11.23 vs $11.05 expected<\/span><\/li>\n<\/ul>\n

    Revenue jumped 23% year over year while net income surged 164%.<\/span><\/p>\n

    But Meta widened its Q4 revenue guidance range because of unpredictability over the war in the Middle East.\u00a0<\/span><\/p>\n

    On the conference call, the CFO said, \u201cWe have observed softer ads in the beginning of the fourth quarter, correlating with the start of the conflict, which is captured in our Q4 revenue outlook.\u201d<\/span><\/p>\n

    Meta expects revenue of $36.5 billion to $40 billion in Q4, which would mark 19% growth at the midpoint of the range.\u00a0<\/span><\/p>\n

    Full-year expenses are expected to fall between $87 billion and $89 billion vs $88 billion to $91 billion previously estimated.\u00a0<\/span><\/p>\n

    IBM Jumps On Earnings Beat<\/span><\/h2>\n

    IBM <\/b>(IBM) shares are rising 1.4% in premarket trade after beating Q3 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

    Here\u2019s how the tech company\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

      \n
    • Adjusted EPS: $2.20 vs $2.12 expected<\/span><\/li>\n
    • Revenue: $14.75 billion vs $14.73 billion expected<\/span><\/li>\n<\/ul>\n

      Total revenue was up 4.6% year over year.<\/span><\/p>\n

      Revenue in IBM\u2019s software segment, which includes its AI platform, jumped 7.8% from a year ago.<\/span><\/p>\n

      Consulting revenue rose 5.6% to $ 5 billion, slower than expectations for 8.7% growth.\u00a0<\/span><\/p>\n

      Infrastructure revenue fell 2.4% to $3.3 billion, better than estimates for a 7.5% decline.\u00a0<\/span><\/p>\n

      IBM generated $1.7 billion in free cash flow during the quarter and maintained its full-year forecast for free cash flow of about $10.5 billion.\u00a0<\/span><\/p>\n

      Southwest Falls After Earnings<\/span><\/h2>\n

      Southwest Airlines <\/b>(LUV) shares are down 2.1% ahead of the open after reporting Q3 earnings in-line with expectations.\u00a0<\/span><\/p>\n

      Here\u2019s how the airline\u2019s results compared to analysts\u2019 estimates:<\/span><\/p>\n

        \n
      • Adjusted EPS: $0.38, as expected<\/span><\/li>\n
      • Revenue: $6.53 billion vs $6.57 billion expected<\/span><\/li>\n<\/ul>\n

        Revenue rose 4.9% year over year while net income dropped 30%.<\/span><\/p>\n

        Southwest said it plans to slow its capacity growth in 2024 as it sees moderating travel demand.\u00a0<\/span><\/p>\n

        The airline plans to expand its flight schedules 10% to 12% year over year in Q1 2024, down from its previous forecast for as much as 16% growth.\u00a0<\/span><\/p>\n

        For the full year, Southwest is planning on 6% to 8% capacity growth.\u00a0<\/span><\/p>\n

        Ford, UAW Reach Tentative Deal<\/span><\/h2>\n

        Ford Motor <\/b>(F) shares are rising 2.8% in premarket trade after reaching a tentative deal with the United Auto Workers Union.<\/span><\/p>\n

        The automaker announced the deal to end a nearly six-week strike by the union on Wednesday night.\u00a0<\/span><\/p>\n

        It reportedly includes 25% pay increases over the terms of the agreement and will increase the top wage to more than $40 per hour.\u00a0<\/span><\/p>\n

        It also includes a 68% increase for starting wages to over $28 an hour.\u00a0<\/span><\/p>\n

        The agreement also reinstates cost-of-living adjustments, a three-year path to top wages, and right to strike over plant closures.\u00a0<\/span><\/p>\n

        The UAW president said in a video, \u2033We told Ford to pony up and they did. We won things nobody thought was possible.\u201d\u00a0<\/span><\/p>\n

        The deal must be approved by local UAW leaders and ratified by a simple majority of Ford\u2019s 57,000 union-represented workers.<\/span><\/p>\n

        Those currently on strike from Ford will return to work while the approval process occurs.<\/span><\/p>\n

        Q3 GDP Expands More Than Expected<\/span><\/h2>\n

        The U.S. economy grew more than expected in the third quarter.\u00a0<\/span><\/p>\n

        The Commerce Department reported GDP rose at a 4.9% annualized pace last quarter, up from 2.1% in Q2.\u00a0<\/span><\/p>\n

        That was better than expectations for 4.7% growth.<\/span><\/p>\n

        Consumer spending jumped 4%, gross private domestic investment surged 8.4%, and government spending and investment rose 4.6%.\u00a0<\/span><\/p>\n

        Consumer spending on goods was up 4.8% while spending on services rose 3.6%.\u00a0<\/span><\/p>\n

        Weekly Jobless Claims Rise Slightly<\/span><\/h2>\n

        Weekly jobless claims rose slightly more than expected last week.\u00a0<\/span><\/p>\n

        The Labor Department reported 210,000 Americans filed initial claims for unemployment benefits.\u00a0<\/span><\/p>\n

        That was up by 10,000 from the previous week and higher than expectations for 207,000.\u00a0<\/span><\/p>\n

        Continuing claims rose by 63,000 to 1.79 million in the week ending October 14.\u00a0<\/span><\/p>\n

        That was the fifth straight weekly increase and the highest level since May.<\/span><\/p>\n

        In Case You Missed It<\/span><\/h2>\n
          \n
        • New home sales rose more than expected in September as buyers turn to builders amid a shortage of existing homes for sale. The Census Bureau reported new sales surged 12.3% to a seasonally adjusted annual rate of 759,000 units last month. That was better than expectations for 680,000 units and marked the highest level of new home sales since February 2022. New sales were up 33.9% year over year. The median sales price of a new home sold last month fell to $418,800 from $430,300 in August. The supply of new homes for sale fell 10.4% to a 6.9-month supply.\u00a0<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

          DJIA Futures: -27 (-0.1%) SPX Futures: -16 (-0.4%) NASDAQ Futures: -86 (-0.6%) Good morning friends! Futures are sliding as Meta\u2019s ad-revenue warning drags on tech stocks. Let\u2019s get right to it! Meta Slips On Ad Revenue Warning Meta Platforms (META) shares are down 3.7% ahead of the open despite crushing Q3 expectations.\u00a0 Here\u2019s how the social media giant\u2019s results compared to analysts\u2019 estimates:\u00a0 EPS: $4.39 vs $3.63 expected Revenue: $34.15 billion vs $33.56 billion expected Daily active users: 2.09 billion vs 2.07 billion expected Monthly active users: 3.05 billion, as expected Average revenue per user: $11.23 vs $11.05 expected Revenue jumped 23% year over year while net income surged 164%. But Meta widened its Q4 revenue guidance range because of unpredictability over the war in the Middle East.\u00a0 On the conference call, the CFO said, \u201cWe have observed softer ads in the beginning of the fourth quarter, correlating with the start of the conflict, which is captured in our Q4 revenue outlook.\u201d Meta expects revenue of $36.5 billion to $40 billion in Q4, which would mark 19% growth at the midpoint of the range.\u00a0 Full-year expenses are expected to fall between $87 billion and $89 billion vs $88 billion to $91 billion previously estimated.\u00a0 IBM Jumps On Earnings Beat IBM (IBM) shares are rising 1.4% in premarket trade after beating Q3 expectations on the top and bottom line.\u00a0 Here\u2019s how the tech company\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $2.20 vs $2.12 expected Revenue: $14.75 billion vs $14.73 billion expected Total revenue was up 4.6% year over year. Revenue in IBM\u2019s software segment, which includes its AI platform, jumped 7.8% from a year ago. Consulting revenue rose 5.6% to $ 5 billion, slower than expectations for 8.7% growth.\u00a0 Infrastructure revenue fell 2.4% to $3.3 billion, better than estimates for a 7.5% decline.\u00a0 IBM generated $1.7 billion in free cash flow during the quarter and maintained its full-year forecast for free cash flow of about $10.5 billion.\u00a0 Southwest Falls After Earnings Southwest Airlines (LUV) shares are down 2.1% ahead of the open after reporting Q3 earnings in-line with expectations.\u00a0 Here\u2019s how the airline\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $0.38, as expected Revenue: $6.53 billion vs $6.57 billion expected Revenue rose 4.9% year over year while net income dropped 30%. Southwest said it plans to slow its capacity growth in 2024 as it sees moderating travel demand.\u00a0 The airline plans to expand its flight schedules 10% to 12% year over year in Q1 2024, down from its previous forecast for as much as 16% growth.\u00a0 For the full year, Southwest is planning on 6% to 8% capacity growth.\u00a0 Ford, UAW Reach Tentative Deal Ford Motor (F) shares are rising 2.8% in premarket trade after reaching a tentative deal with the United Auto Workers Union. The automaker announced the deal to end a nearly six-week strike by the union on Wednesday night.\u00a0 It reportedly includes 25% pay increases over the terms of the agreement and will increase the top wage to more than $40 per hour.\u00a0 It also includes a 68% increase for starting wages to over $28 an hour.\u00a0 The agreement also reinstates cost-of-living adjustments, a three-year path to top wages, and right to strike over plant closures.\u00a0 The UAW president said in a video, \u2033We told Ford to pony up and they did. We won things nobody thought was possible.\u201d\u00a0 The deal must be approved by local UAW leaders and ratified by a simple majority of Ford\u2019s 57,000 union-represented workers. Those currently on strike from Ford will return to work while the approval process occurs. Q3 GDP Expands More Than Expected The U.S. economy grew more than expected in the third quarter.\u00a0 The Commerce Department reported GDP rose at a 4.9% annualized pace last quarter, up from 2.1% in Q2.\u00a0 That was better than expectations for 4.7% growth. Consumer spending jumped 4%, gross private domestic investment surged 8.4%, and government spending and investment rose 4.6%.\u00a0 Consumer spending on goods was up 4.8% while spending on services rose 3.6%.\u00a0 Weekly Jobless Claims Rise Slightly Weekly jobless claims rose slightly more than expected last week.\u00a0 The Labor Department reported 210,000 Americans filed initial claims for unemployment benefits.\u00a0 That was up by 10,000 from the previous week and higher than expectations for 207,000.\u00a0 Continuing claims rose by 63,000 to 1.79 million in the week ending October 14.\u00a0 That was the fifth straight weekly increase and the highest level since May. In Case You Missed It New home sales rose more than expected in September as buyers turn to builders amid a shortage of existing homes for sale. The Census Bureau reported new sales surged 12.3% to a seasonally adjusted annual rate of 759,000 units last month. That was better than expectations for 680,000 units and marked the highest level of new home sales since February 2022. New sales were up 33.9% year over year. The median sales price of a new home sold last month fell to $418,800 from $430,300 in August. The supply of new homes for sale fell 10.4% to a 6.9-month supply.\u00a0<\/p>\n","protected":false},"author":41,"featured_media":71817,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-71813","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/71813","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=71813"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/71813\/revisions"}],"predecessor-version":[{"id":71818,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/71813\/revisions\/71818"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/71817"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=71813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=71813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=71813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}