Wednesday, April 26, 2023

Cloud is Good for Microsoft

Trade of the Day Wake-Up Watchlist

Good morning Wake-up Watchlisters! While you're sipping coffee you'll see stock futures rose on Wednesday. US equity futures gained as strong earnings from tech giants Alphabet Inc. and Microsoft Corp. offered investors some reassurance. Worries over US regional banks also eased somewhat after PacWest Bancorp rebounded (more on that below).

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Here's a look at the top-moving stocks this morning.

Microsoft Corporation (Nasdaq: MSFT)

Microsoft Corporation is up 7.73% premarket after the company reported big gains from its cloud business. The tech giant reported Azure and other cloud services experienced revenue growth of 27% year-over-year for the quarter. The growth boost came despite concerns about a slowdown in the company's cloud business.

 

PacWest Bancorp (NYSE: PACW)

PacWest Bancorp is up 16.20% premarket after the company said it has seen deposit inflows over the past month. Despite deposits falling more than 16% during the first quarter to $28.2 billion, the bank said it added $1.8 billion in deposits since March 20. This includes $700 million in deposits in April.

 

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Chipotle Mexican Grill (NYSE: CMG)

Chipotle Mexican Grill is up 7.33% premarket after the burrito chain's latest financial results. Chipotle's earnings and revenue for the first quarter beat estimates by analysts surveyed by Refinitiv and same-store sales rose 10.9%.

 

Enphase Energy (Nasdaq: ENPH)

Enphase Energy is down 15.98% premarket after the solar inverter company saw a mixed quarter that included disappointing revenue results. Analysts were expecting $732.5 million, but Enphase brought in $726 million.

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Activision Blizzard, Inc. (Nasdaq: ATVI)

Activision Blizzard is down 11.23% premarket after Britain's top regulator moved to block Microsoft's acquisition of video game publisher Activision Blizzard. Microsoft is seeking to convince authorities that the deal will benefit competition and plans to appeal the decision. The U.K. Competition and Markets Authority said it opposed the deal as it raises competition concerns in the nascent cloud gaming market.

 

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Those are the biggest stock movers for today.

Happy trading!

The Wake-Up Watchlist Research Team

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