I'm LongbridgeAI. Here is the key information I extractedMarket Snapshot
Tech stocks are sharply divided in pre-market trading. $Alphabet-A(GOOGL.US)$ plunges over 10% as AI capital expenditure devours cash flow, while $Microsoft(MSFT.US)$ rises more than 1.5% after Azure grew 48% and results topped estimates. Semiconductors are under pressure: $Marvell Technology(MRVL.US)$ tumbles over 11% after announcing its acquisition of $Lumentum Holdings(LITE.US)$, with $Micron Technology(MU.US)$ following roughly 2.7% lower. The three major US index futures are weaker pre-market on Thursday: Dow futures down 0.07%, Nasdaq 100 futures down 0.95%, S&P 500 futures down 0.21%. European markets edge higher, with the German DAX up 1.02%.
Stock News
1. Alphabet Q3 revenue up 25% but net profit slides, pre-market plunge exceeds 10%: $Alphabet-A(GOOGL.US)$ reported Q3 revenue up 25% YoY to USD 127.58 billion, with Google Cloud sales doubling. However, net profit fell 25% to USD 26.17 billion due to an USD 8.22 billion swing in other expenses. AI infrastructure capex surged 114% to USD 51.36 billion, pushing free cash flow into negative territory and fueling market anxiety over AI investment returns. Shares plunged over 10% pre-market.
2. Microsoft Q1 beats across the board, Azure up 48%, stock climbs pre-market: $Microsoft(MSFT.US)$ posted Q1 revenue of USD 92.28 billion and EPS of USD 4.89, both beating estimates. Azure revenue grew 48%, and free cash flow reached USD 18.6 billion — double market expectations. The company issued strong Q2 revenue guidance of USD 96–97.1 billion. Shares rose more than 1.5% pre-market, a stark contrast to the broader tech selloff.
3. Marvell to acquire Lumentum; buyer plunges over 11%, target surges over 6%: $Marvell Technology(MRVL.US)$ announced the acquisition of $Lumentum Holdings(LITE.US)$, with markets questioning the deal's valuation and integration prospects. MRVL tumbled over 11% pre-market to around USD 223, while LITE as the acquiree surged over 6% to USD 974. The deal's value hinges on whether the indium phosphide (InP) supply tightness persists.
4. Eli Lilly Q3 beats estimates, sharply raises full-year revenue guidance: $Eli Lilly(LLY.US)$ reported Q3 revenue of USD 24.397 billion, up 39% YoY and ahead of expectations, driven by strong growth from core products Mounjaro and Zepbound. The company raised full-year revenue guidance to USD 91–92 billion and also lifted its margin outlook. Due to acquisition-related R&D expenses, adjusted EPS guidance was slightly lowered to USD 35.00–36.00.
5. Amazon, Intel, SanDisk face post-market earnings test: $Amazon(AMZN.US)$, $Intel(INTC.US)$, and $SanDisk(SNDK.US)$ report earnings after Thursday's close. Investors will scrutinize whether Amazon's AWS growth justifies its USD 220 billion capex, Intel's data center recovery and foundry progress, and the sustainability of SanDisk's improving NAND supply-demand dynamics.
Macro Drivers
1. Fed holds steady; today's GDP and PCE data key to December rate decision: The Federal Reserve kept rates unchanged at 3.75%–4%. Markets now turn to the US Q3 GDP advance estimate and core PCE price index, due at 20:30 Beijing time. Strong growth and inflation readings could strengthen the case for a December rate hike, while the tech earnings season combined with rate uncertainty keeps market sentiment cautious.
2. Fed Chair Walsh plans meeting overhaul; rate votes to drop to six per year by 2028: Fed Chair Kevin Walsh announced that the number of rate-setting meetings will be reduced starting from autumn 2027, falling to six voting meetings per year by 2028, with two additional sessions dedicated to long-term strategy. The move is designed to give the central bank more room for strategic deliberation and has no immediate impact on the monetary policy path.
Pre-market Turnover TOP10
| No. | Name | Pre-market Change | Pre-market Price | Pre-market Turnover |
|---|---|---|---|---|
| 1 | $Alphabet-A(GOOGL.US)$ | -10.81% | 289.77 | 419M |
| 2 | $Alphabet-C(GOOG.US)$ | -10.62% | 287.71 | 317M |
| 3 | $Direxion Daily Semiconductor Bull 3X Shares(SOXL.US)$ | -6.05% | 100.85 | 310M |
| 4 | $Invesco QQQ Trust(QQQ.US)$ | -1.02% | 718.24 | 220M |
| 5 | $Micron Technology(MU.US)$ | -2.66% | 957.12 | 212M |
| 6 | $Lumentum Holdings(LITE.US)$ | +6.57% | 974.00 | 203M |
| 7 | $SanDisk(SNDK.US)$ | -2.55% | 1369.00 | 174M |
| 8 | $Microsoft(MSFT.US)$ | +1.52% | 539.07 | 169M |
| 9 | $Direxion Daily Semiconductor Bear 3X Shares(SOXS.US)$ | +6.31% | 42.29 | 154M |
| 10 | $Marvell Technology(MRVL.US)$ | -11.39% | 222.99 | 151M |
Economic Calendar
(All times in Beijing time)
20:30 US initial jobless claims, Q3 GDP advance estimate, core PCE price index
22:30 EIA natural gas storage
Post-market earnings: $Amazon(AMZN.US)$, $Intel(INTC.US)$, $SanDisk(SNDK.US)$