Stock Market Futures Move Lower After SNAP Reports Q2 Earnings
U.S. stock futures are marginally lower in early morning trading on Friday this week. Overall, this could be the result of Snap Inc. (NYSE: SNAP) and Intuitive Surgical (NASDAQ: ISRG) earnings that are weighing on the stock market Friday morning. On Thrusday the market rallied, fueled by Tesla (NASDAQ: TSLA) and lower Treasury yields boosting the Nasdaq higher.
Commenting on the current state of things now is Keith Lerner, at Truist. He stated, “This is showing you that market expectations are really low, that a little bit of good news can go a long way when you have low expectations.” While you digest all this mixed data on the economy, here is how the major U.S. stock indexes are doing premarket. As of 6:36 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading lower by 0.03%, 0.31%, and 0.60% respectively.
Snap Stock Falls Following Worse-Than-Expected Second-Quarter Earnings Report
Making headlines in the tech world today would be Snap. For the most part, this would be thanks to Snap releasing its disappointing second quarter fiscal earnings after the market close on Thursday. To explain, SNAP stock fell 30% in premarket trading on Friday, moving back under its mid-June bottom. Shares of SNAP had closed Thursday’s trading session up 5.6% to $16.38 a share. Snap reported a second-quarter loss that was worse than expected, while revenue fell short of Wall Street’s estimates. Diving in, SNAP reported a revenue increase of 13% year-over-year, while increasing Daily Active Users by 18% year-over-year to 347 million. Though, the company also wouldn’t provide any guidance for Q3.
Explaining all this in further detail is SNAP CEO Evan Spiegel. He writes, “While the continued growth of our community increases the long-term opportunity for our business, our financial results for Q2 do not reflect our ambition.” He continued, “We are evolving our business and strategy to reaccelerate revenue growth, including innovating on our products, investing heavily in our direct response advertising business, and cultivating new sources of revenue to help diversify our topline growth.” As the social media goliath continues to face issues with top-line growth and growing recession concerns, this could continue to move shares lower in the short term. All in all, this could put SNAP stock on investors’ radars ahead of today’s opening bell.
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Intuitive Surgical Stock Drops On Disappointing Second-Quarter Fiscal Earnings
On the health care front, Intuitive Surgical is making headlines in the stock market on Friday. The company reported its second quarter fiscal earnings on Thursday. The company’s earnings dropped for a second quarter, while revenue growth slowed for four consecutive quarters, to just 4%. This could be partially due to Covid’s continuous impact on procedures. Shares of ISRG stock tumbled 12% on Friday premarket to $197.11 per share. These earnings and commentary could be an indication of what we will see from other medical devices, products, and systems makers.
Furthermore, during the second quarter, the company reported fewer than usual surgeries performed by the company’s flagship system, da Vinci. Procedure volume increased only 14%, which is down from 19% in the previous quarter. Also, Intuitive Surgical reported it placed 279 systems, a drop of 15% year-over-year.
Elaborating on these earnings is Intuitive Surgical CEO Gary Guthart. He begins by noting, “Customer demand for procedures was healthy in the second quarter despite a challenging global environment.” He continued, “We remain focused on meeting that demand with high quality products and services while advancing our innovation programs.” Simply put, ISRG Stock is stating the main contributing factor to this quarter’s performance is due to the resurgence of COVID cases around the world. Time will tell, but after considering all this, ISRG stock could be worth keeping an eye on right now.
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