Stocks to Watch : Tesla, IBM, Microsoft, Lam Research, Cargo Therapeutics
CRGX
By Connor Hart
Tesla logged higher revenue in the fourth quarter. The electric-car maker's revenue increased to $25.71 billion from $25.17 billion a year earlier. The company said that automotive sales revenue dropped 8.2% to $19.80 billion, while its energy generation and storage revenue more than doubled to $3.06 billion. Net income fell to 66 cents a share from $2.27 a share last year. On an adjusted basis, per-share earnings came in at 73 cents. Shares climb 5%, to $408.51, in after-hours trading.
Investors rallied behind International Business Machines' artificial-intelligence strategy, driving the stock up after the company released its latest quarterly earnings. The tech company has continued to gain early momentum from AI consulting, while its software models are accelerating. These AI advancements helped drive total revenue 1% higher, to $17.55 billion. Adjusted per-share earnings came in at $3.92, ahead of the $3.78 that analysts surveyed by FactSet were expecting. Shares jump 8.9%, to $248.98, in postmarket trading.
Microsoft's flagship cloud computing business experienced a slowdown in growth last quarter, as constraints on data center supply prevented it from meeting booming demand from artificial-intelligence companies. Revenue from the tech company's Azure cloud computing division, which is closely watched by investors, grew 31%, at the low end of the company's projections and below the 32% that analysts expected. Overall revenue rose 12% to $69.6 billion, and net income was up 10% to $24.1 billion. Shares fall 5.6%, to $417.80, in after-hours trading.
Lam Research issued better-than-expected guidance for the current quarter. For its current quarter, the maker of equipment for semiconductor manufacturing forecast per-share earnings between 90 cents and $1.10 on revenue between $4.35 billion and $4.95 billion. Analysts expected earnings of 87 cents a share on $4.33 billion in revenue in the current quarter, according to FactSet. Shares rise 4.1%, to $78.21, in postmarket trading.
Cargo Therapeutics will cut half of its workforce, or about 58 jobs, as it stops the development of one of its drugs. The company said the layoffs will extend its cash runway, allowing it to prioritize focus on the development of other potential treatments. The job cuts come as Cargo Therapeutics discontinued the development of its potential treatment for certain types of blood cancer, citing results from a recent trial that don't support a competitive benefit-risk profile for the intended patient population. Shares tumble 77%, to $3.05, in after-hours trading.
Write to Connor Hart at [email protected]
(END) Dow Jones Newswires
01-29-25 1915ET