Stock Market Futures Edge Higher As Omicron Fears Subside
Stock market futures are in the green in early morning trading on Tuesday. This comes after initial reports provided somewhat positive data on the Omicron Covid variant. In detail, White House chief medical advisor, Dr. Anthony Fauci, noted that the severity of the new variant of concern is, well, not as concerning as most initially thought. While Fauci noted that there is data to still be collected, investors appear to be relieved nonetheless. Could this spell the end of the recent bouts of volatility seen across the broader stock market?
To help with this, Morgan Stanley’s (NYSE: MS) fixed income portfolio manager Jim Caron weighed in on the situation. He said, “I know after Thanksgiving [news about Omicron] came out and that created a pretty big volatile event, but I think the initial conditions where valuations were pretty full, we knew the Fed was starting to change course and starting to tighten financial conditions a bit, and that’s going to mean that asset prices are going to have to reprice.” As of 6:47 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading higher by 1.03%, 1.36%, and 1.89% respectively.
MongoDB (MDB) Stock Soars On Strong Revenue Growth
MongoDB (NASDAQ: MDB) is the latest among tech firms to post solid earnings this week. Before going into the details, it is a software company that develops and provides commercial support for its proprietary database. Through the MongoDB software platform, tech enterprises can employ distributed data stores. The likes of which serve as Big Data solutions. Overall, MongoDB is currently working with a growing client network that spans across 100 countries worldwide. Thanks to its latest quarterly earnings figures, MDB stock seems to be gaining traction in the stock market today.
Diving right in, MongoDB posted a total revenue of $226.9 million with a loss per share of 11 cents for the quarter. For comparison, consensus estimates were at $205.2 million with a loss of 38 cents per share. Year-over-year, the company posted a solid 50% surge in quarterly revenue. According to MongoDB, a key contributor to this solid performance would be the company’s Atlas cloud database service. Notably, the company’s Atlas cloud revenue surged by 84% year-over-year.
By and large, it seems that demand for MongoDB’s cloud services is rising as more companies bolster their digital infrastructure. CEO Dev Ittycheria notes that Coinbase Global (NASDAQ: COIN) is among its key clients doing so now. Because of all this, MongoDB is raising its revenue and earnings estimates for the fiscal year. It now expects to report a revenue between $846.3 million to $849.3 million for the full fiscal year. That is about 5% higher than its previous guidance. WIth that in mind, could MDB stock end the year on a high?
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Microsoft Makes Push For More Annual Microsoft Office Subscriptions
In other tech-related news, Microsoft (NASDAQ: MSFT) seems to be gunning for more consistency in its productivity software division. Evidently, the company is planning to raise subscription fees for monthly users by 20%. However, customers that opt to switch towards an annual plan will be in the clear. The real question now is whether this seemingly bold move could play to Microsoft’s advantage in the long run. In theory, this move would help to serve Microsoft in terms of visibility regarding its revenue and customer churn figures.
Not to mention, Microsoft is also bringing more to the table in 2022 with its latest Office updates. Namely, the company is planning to roll out its New Commerce Experience (NCE) software solution among others. Through NCE for Office, Microsoft hopes to make its software more accessible through existing business partners. Additionally, there are also the company’s improvements to its core Windows operating system, and Microsoft 365 bundle to consider. In the larger scheme of things, Microsoft seems to be firing on all cylinders now. Regardless of whether or not you believe in the current reopening trade, MSFT stock could be worth watching now.
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Intel Looks To Bring Mobileye Self-Driving Unit Public
Elsewhere, semiconductor chip giant Intel (NASDAQ: INTC) is making waves in the stock market today thanks to its latest announcement. In essence, Intel is reportedly looking to take its autonomous driving unit, Mobileye, public via an initial public offering (IPO). For one thing, Mobileye is seeing strong momentum in terms of revenue growth. This is evident as the division has almost tripled its revenues since being acquired by Intel in 2017. As it stands, the current listing could see Mobileye sitting at a value of over $50 billion.
Ideally, the IPO would serve to further highlight the viability of Mobileye’s core business. After going public, the firm will continue to work closely with Intel to advance their collective positions in the global automotive market. CEO Prof. Amnon Shashua said, “Our alignment with Intel continues to provide Mobileye with valuable technical resources and support that has yielded strong revenue along with free cash flow that allows us to fund our AV [autonomous vehicle] development work from current revenue. Intel and Mobileye’s ongoing technology co-development will continue to deliver great platform solutions for our customers.“
All in all, time will tell if the move can further solidify Intel’s presence in the growing automotive chip industry. Nevertheless, with news like this catching headlines, I could see INTC stock gaining attention in the market now.
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Stock Market Earnings To Note Today
Aside from all this exciting news in the tech world, we also have plenty of earnings to consider today. This is apparent in both the pre-and post-market trading hours. To begin with, retail names such as AutoZone (NYSE: AZO), Designer Brands (NYSE: DBI), and Conn’s (NASDAQ: CONN). For investors eyeing the strength in consumer spending, these firms could be a top watch. At the same time, the likes of Alico (NASDAQ: ALCO), Core & Main (NYSE: CNM), and Wiley (NYSE: JW.A) are also reporting earnings before the opening bell.
Alternatively, there is a healthy mix of earnings on tap after the closing bell as well. This includes ChargePoint (NYSE: CHPT), Dave & Busters (NASDAQ: PLAY), Stitch Fix (NASDAQ: SFIX), ReneSola (NYSE: SOL), and Casey’s (NASDAQ: CASY) among others. Thus, whether it is keeping up with news of the Omicron variant, developments among tech companies, or earnings, there is enough to keep you occupied in the stock market today.
