Business and Finance News - 6.6.24

Alphabet Appoints Eli Lilly's Anat Ashkenazi as New CFO Amid Leadership Restructuring and AI Investment Focus

• Alphabet* (GOOG) appoints Anat Ashkenazi as new CFO, effective July 31, replacing Ruth Porat.

• Ashkenazi joins Alphabet after a 23-year career at Eli Lilly, where she was CFO since 2021.

• Ruth Porat will become Alphabet's president and chief investment officer.

• Google’s finance unit is restructuring to focus more on AI investments.

• Porat announced Google's finance unit restructuring, including layoffs and relocations.

• Ashkenazi managed revenue growth from Eli Lilly’s weight loss and diabetes drugs.

• Google’s leadership shifts include departures of key figures like YouTube CEO Susan Wojcicki.

* Alphabet Inc. is a multinational conglomerate and the parent company of Google. It operates through various subsidiaries, primarily focusing on technology and internet-related services and products.

Apollo Global Acquires 49% Stake in Intel's $18.4 Billion Ireland Facility for $11 Billion, Intel Retains Control

• Apollo Global* (APO) to acquire 49% equity in Intel's Ireland facility for $11 billion.

• The facility, Fab 34, is Intel's first high-volume site using extreme ultraviolet lithography.

• The deal is expected to close in the second quarter of 2024.

• Intel has invested $18.4 billion in the Leixlip facility to date.

• Intel plans to build more chip factories in Ireland and France.

• Intel retains full ownership and operational control of Fab 34.

• The deal helps Intel share investment costs with a financial partner.

* Apollo Global Management is a global alternative investment management firm. It specializes in investing across various asset classes, including private equity, credit, and real assets.

CrowdStrike Exceeds Q1 Estimates, Raises Guidance, Yet Stock Dips Despite Strong Financials and Record Cash Flow

• CrowdStrike's* (CRWD) Q1 adjusted earnings per share (EPS) were $0.93, surpassing the $0.90 estimate.

• Q1 revenue reached $921.0 million, beating the $904.7 million analyst estimate.

• The company raised its full-year earnings and revenue guidance.

• CrowdStrike's Q2 EPS guidance is $0.98 to $0.99, above the $0.91 estimate.

• Q2 revenue is expected to be $958.3 million to $961.2 million, topping the $954.6 million estimate.

• Record free cash flow for Q1 was $322 million, with revenue up 33% year over year.

• Despite positive earnings, CrowdStrike's stock experienced a slight decline.

* CrowdStrike is a cybersecurity company that provides various services and products to protect businesses and organizations from digital threats.

European Central Bank (ECB) to Cut Rates for First Time Since 2019, Ending Fast-Hiking Cycle Amid Persistent Inflation and Wage Growth

• European Central Bank (ECB)* set to cut borrowing costs for the first time since September 2019.

• This cut marks the end of the record fast-hiking cycle post-Covid-19 pandemic.

• Investors focus on future actions after the June rate cut by the ECB.

• May inflation in the euro area was slightly higher than expected, with 2.6% headline inflation.

• ECB officials suggest another rate cut in July is unlikely despite recent data.

• Wage growth in the euro area reaccelerated to 4.7% in Q1 2024.

• ECB board member cautions against cutting interest rates too quickly.

* The European Central Bank (ECB) is the central bank for the euro and administers the monetary policy of the Eurozone, which consists of 20 EU member states that use the euro as their currency.

Hewlett Packard (HP) Exceeds Q2 Estimates with $0.42 EPS and $7.2B Revenue, Surpassing Consensus for Four Consecutive Quarters

• Hewlett Packard’s* (HPE) Q2 earnings were $0.42 per share, exceeding the $0.38 estimate.

• This represents an earnings surprise of 10.53%.

• HP's Q2 revenue was $7.2 billion, beating the $6.97 billion estimate.

• Over the last four quarters, HP has surpassed consensus EPS estimates four times.

• HP shares have increased by 5.7% since the beginning of the year.

• HP's Zacks Rank is currently #3 (Hold), indicating expected market performance.

• The Computer - Integrated Systems industry ranks in the top 31% of Zacks industries.

* Hewlett Packard (HP) is a technology company that provides a wide range of products and services; personal computers, printers and imaging, enterprise solutions, etc.

Here’s how the markets closed yesterday:

• Dow Jones: 38,807.33 +96.04 (+0.25%)

• S&P 500: 5,354.03 +62.69 (+1.18%)

• Nasdaq: 17,187.90 +330.86 (+1.96%)

• Bitcoin (BTC): $71,118.03 (6:15PM PST on 6/5/24)

• Ethereum (ETH): $3,866.64 (6:15PM PST on 6/5/24)

Here’s how THE SUPER SIX did yesterday:

• Microsoft (3.151T): 424.01 +7.94 (+1.91%)

• Nvidia (3.012T): 1,224.40 +60.03 (+5.16%)

• Apple (3.003T): 195.87 +1.52 (+0.78%)

• Alphabet (2.188T): 177.07 +1.94 (+1.11%)

• Amazon (1.887T): 181.28 +1.94 (+1.08%)

• Meta Platforms (1.256T): 495.06 +18.07 (+3.79%)

* Tesla was removed from this list because this list is for companies with trillion dollar market caps.