Bitcoin skyrocketed 5% after Tesla’s founder Elon Musk officially announced it will accept the cryptocurrencies as payment.
3 stocks that beat expectations
Tesla, Facebook and Microsoft have outperformed analysts’ forecasts and ramped up after earnings reports. How is it possible amid the coronavirus crisis?
Surprisingly, Tesla has managed to make a profit in the first quarter amid the global crisis. Elon Musk even didn’t mention the coronavirus in his letter to investors. The company earned 16 million dollars in the quarter, sales rose to 5.99 billion dollars from 4.54 billion dollars a year ago. The stock surged more than 9% after the report. Overall, Tesla shares increased by 36% in the last three months. However, the second quarter might be worse as people’s incomes reduced. Also, lower gasoline prices made people keep driving their petrol-driven cars. Despite these doubts, Tesla targeted the 40% annual growth.
The Facebook revenue for the first quarter was better than expected(17.74 billion dollars), but earnings came worse because of the virus impact(4.9 billion dollars). Overall reaction to the report was positive and mixed results pushed the Facebook stock up by 10%. The outlook for the second quarter is still uncertain, but the company will make all efforts to mitigate the coronavirus effect. For example, last week it released Messenger Rooms, a video chat meeting service as an alternative to Zoom. Future perspectives are positive for Facebook.
Microsoft outperformed expectations that had been made before the coronavirus spread. It’s the only Dow Jones component to see its stock up in the first quarter. Microsoft reported 10.75 billion dollars earnings, or $1.40 a share, on sales of 35 billion dollars, up from profit of $1.14 a share on revenue of 30.57 billion dollars a year ago. Analysts anticipated earnings of $1.27 a share on sales of $33.76 billion. Microsoft shares rose more than 2% in after-hours trading. Also, the company has the Azure cloud-computing software that would help to offset the coronavirus damage as most companies need this tool to work from home. However, the company is not so confident about the future growth.
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