Shopify surges, AMD slides premarket as earnings disappoint

Investing.com - U.S. stock index futures were broadly higher on Wednesday as investors drew cautious optimism from signs that negotiations to reopen the Strait of Hormuz could be gaining traction, although disappointing reactions to earnings from Advanced Micro Devices and privately held SpaceX tempered enthusiasm for technology shares.

By 05:49 ET (09:49 GMT), Dow futures had risen 142 points, or 0.3%, while S&P 500 futures gained 23 points, or 0.3%. Nasdaq 100 futures were little changed as weakness in semiconductor stocks offset gains elsewhere in technology.

Shares of Advanced Micro Devices fell 8.8% in premarket trading after the chipmaker's revenue outlook failed to convince investors that the multibillion-dollar artificial intelligence spending boom would translate into faster growth.

Sentiment was also dented after SpaceX said it would build its computing infrastructure exclusively with Nvidia chips, highlighting the challenges AMD faces in winning marquee AI customers.

Shopify jumped 26% after the e-commerce platform posted second-quarter revenue of $3.58 billion, topping analysts' expectations of $3.45 billion, while adjusted earnings per share of $0.42 also beat estimates. Gross merchandise volume rose 32% from a year earlier and free cash flow climbed to $654 million, reinforcing confidence in the company's accelerating growth.

Healthcare stocks were also in focus. Eli Lilly gained 5.7% after reporting another strong quarterly earnings beat and raising its full-year revenue guidance, extending momentum driven by robust demand for its diabetes and obesity treatments. Medical technology company GE HealthCare advanced 12.3% after beating Wall Street estimates on both revenue and profit for the second quarter.

Software firm Dynatrace climbed 12% after first-quarter fiscal 2027 results topped expectations and several brokerages lifted their price targets, while online education provider Stride rose 10.6% after reporting stronger-than-expected quarterly earnings and reaffirming its long-term financial targets.

Digital Turbine soared 28.2% after posting sharply higher quarterly revenue and profit and raising its full-year guidance, while Disney gained 4.7% after reporting a strong profit beat and announcing plans to repurchase $9 billion of shares during fiscal 2026.

Among decliners, Eos Energy Enterprises dropped 18.2% after confirming a return to losses despite reporting record quarterly revenue, reigniting concerns over its path to profitability.

Vishay Precision Group slid 19.4% after a sharp GAAP earnings miss and weaker-than-expected third-quarter revenue guidance overshadowed a modest adjusted earnings beat.

Pinterest fell 9% after its third-quarter revenue outlook pointed to slower growth despite better-than-expected quarterly results, while Match Group declined 10.2% after reporting weaker-than-expected revenue and forecasting another drop in paying users.

Taboola lost 16.9% after its quarterly report failed to satisfy investors, although the company did not immediately detail the factors behind the weak market reaction.

Wireless carriers also came under pressure after SpaceX outlined plans to build a nationwide mobile service using spectrum acquired from EchoStar, raising concerns that Starlink could eventually compete directly with Verizon, AT&T and T-Mobile. Verizon and AT&T each fell more than 2% in premarket trading, while T-Mobile slipped 1.3%.

You May Also Be Interested In

• Is the global equity rally broadening? UBS weighs in
• Beike (BEKE) PT Raised to $23 at Morgan Stanley
• Vireo Growth completes acquisition of C21 Investments