Tobias

Fiserv’s shares plummeted 44% after slashing its earnings outlook and announcing a leadership shakeup. The company lowered its full-year adjusted EPS forecast to $8.50-$8.60 and revenue growth to 3.5%-4%, citing deteriorating economic conditions in Argentina as a factor. Q3 adjusted EPS and revenue also missed estimates. Takis Georgakopoulos and Dhivya Suryadevara will share the co-president role, and Paul Todd is the new finance chief. Three new members will join the board in 2026. Fiserv is transferring its stock listing to the Nasdaq.

Apple briefly surpassed a $4 trillion market cap, driven by iPhone 17 demand, favorable antitrust rulings securing its Google search deal, and strategic domestic manufacturing investments. Analysts at Bank of America and JPMorgan express optimism, projecting earnings growth and raising price targets based on future AI prospects. While AI rollout delays raise concerns, strong iPhone sales and tariff management contribute to a positive outlook. Upcoming earnings are crucial to validate the iPhone upgrade cycle and demonstrate sustained growth amid competition.

Snowflake (SNOW) filed an 8-K with the SEC after its CRO, Mike Gannon, inadvertently disclosed unauthorized financial guidance on Instagram, estimating the company would exit the year above $4.5 billion and reach $10 billion in a few years. Snowflake clarified that Gannon isn’t authorized to disclose financial information and that investors should disregard his comments. The company reaffirmed its official guidance of $4.395 billion for fiscal year 2026, minimizing potential market impact.

Alphabet’s Q3 earnings exceeded expectations, driving shares up 5% after-hours. Revenue reached $102.35 billion, with EPS at $3.10. Google Cloud’s revenue grew 35% to $15.15 billion, fueled by AI demand. Alphabet is increasing 2025 capital expenditure to $91-93 billion. YouTube ad revenue hit $10.26 billion, and overall ad revenue was $74.18 billion. Net income surged to $34.97 billion, despite a $3.45 billion EU antitrust fine. Cloud customer base growth is high, and AI product use is increasing.

Meta’s Q3 earnings beat expectations with $7.25 EPS and $51.24 billion revenue, driven by strong ad sales and user growth. However, shares dipped due to a $15.93 billion tax charge related to new legislation. The company anticipates long-term tax benefits from this. Meta projects Q4 revenue between $56-59 billion but increased its full-year expense guidance to $116-118 billion, reflecting AI infrastructure investments. Reality Labs reported a $4.4 billion loss. The company highlighted the success of AI-powered glasses and increasing AI adoption.

Microsoft’s fiscal Q1 exceeded expectations, driven by a 40% Azure revenue surge. While overall revenue rose 18% to $77.67 billion, and net income increased, the stock dipped due to anticipated capex increases for AI and cloud infrastructure. The Intelligent Cloud unit generated $30.9 billion, surpassing estimates. Microsoft anticipates continued growth, forecasting $79.5-$80.6 billion for fiscal Q2. Microsoft’s investment in OpenAI impacted net income by $3.1 billion.

Fueled by megacap tech stocks, particularly Nvidia, the S&P 500 and Nasdaq reached intraday highs. Nvidia’s valuation surpassed $5 trillion after projecting substantial data center visibility, exceeding Wall Street estimates due to surging AI demand. Potential easing of US-China trade restrictions could further boost Nvidia’s growth. Corning also rebounded, poised to benefit from the increasing demand for fiber optic cables in data centers supporting AI. Investors are awaiting the Federal Reserve’s interest rate decision amidst earnings reports.

On Wednesday, Microsoft’s Azure and 365 services suffered a significant outage, impacting global users just before its earnings announcement. The Azure status page cited issues with Azure Front Door due to an “inadvertent configuration change.” The outage affected various services including Xbox and Azure Databricks. Microsoft reported improvements later in the day. Alaska Airlines also reported disruptions due to its Azure reliance. This incident, following a recent AWS outage, highlights risks linked to cloud dependency and the importance of multi-cloud strategies. The timing raises concerns about potential financial impact and infrastructure reliability.

Wall Street saw a volatile Wednesday following the Fed’s rate cut and Chairman Powell’s cautious remarks. The S&P 500 briefly hit an intraday high, driven by semiconductor strength fueled by AI demand. Nvidia’s market cap surpassed $5 trillion. Analysts are revising upwards, anticipating sustained AI capital expenditure. Boeing shares declined on 777X delays. Honeywell’s Solstice spin-off finalized, while analysts are positive on DuPont’s Qnity spin-off. Investors await earnings from Meta, Microsoft, and other major companies.

Federal Reserve Chair Jerome Powell addressed AI bubble concerns, differentiating it from the dotcom era by highlighting tangible earnings and revenue streams in many AI companies. He cited investments in infrastructure like data centers and chip tech as key economic drivers. While Nvidia’s profitability underscores hardware demand, some AI startups like OpenAI and Anthropic are burning cash despite high valuations. The market’s long-term viability relies on translating innovation into sustainable profits, a key area of focus for the Fed in assessing AI’s impact on economic stability.