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Welcome to Wednesday!
Stay ahead of the curve with our rapid-fire roundup of today’s most impactful financial news, tailored to keep you informed and ready to seize opportunities.”
- • MSFT and GOOG shares surge on earnings and revenue beats • UK regulators block Microsoft’s $75 billion Activision Blizzard deal • 3M to cut 6,000 jobs amid shifting focus • Chipotle shares rise on revenue and earnings beat • Gap announces 500 job cuts
Microsoft and Alphabet Shares Soar on Earnings and Revenue Surpassing Estimates
Microsoft and Alphabet shares experienced a significant increase in extended trading after reporting better-than-expected earnings and revenue results. Microsoft’s shares jumped over 7% while Alphabet’s shares rose 1%. Microsoft’s revenue increased by 7% from the previous year, with its More Personal Computing unit showcasing an 18% growth in its Windows commercial business. Microsoft also repurchased $4.6 billion of its stock during the quarter. Alphabet exceeded analyst estimates for earnings and revenue and announced a $70 billion stock buyback. Alphabet’s per-share profits fell 5% due to $2.6 billion in one-time charges tied to cost-cutting.
UK Regulators Deny Microsoft’s $75 Billion Activision Blizzard Acquisition
United Kingdom regulators rejected Microsoft’s $75 billion deal to acquire game developer Activision Blizzard, presenting obstacles for Microsoft to finalize the acquisition. This decision precedes upcoming decisions from the European Union and the U.S. Federal Trade Commission.
3M Announces 6,000 Job Cuts to Reduce Costs
3M is set to eliminate around 6,000 jobs worldwide in a second round of layoffs this year as the company seeks to control costs due to decreasing demand for consumer electronics. 3M plans to focus on high-growth businesses such as automotive electrification and home improvement, while prioritizing emerging growth areas like climate technology and next-generation consumer electronics.
Chipotle Shares Rise as Revenue and Earnings Exceed Expectations
Chipotle Mexican Grill shares are up over 7% in pre-market trading as the company reported increased restaurant traffic in spite of price hikes. Chipotle’s earnings and revenue surpassed analyst estimates, with same-store sales increasing by 10.9%, beating the projected 8.6%.
Gap Plans to Cut 500 Jobs
Gap intends to lay off 500 corporate employees in its most recent round of job cuts. This round is larger than the previous one announced in September, aimed at saving $250 million annually.
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