Parent company Alphabet Inc. lost 2.8% of its stock value. This drop came in the wake of a federal judge finding that the company maintains an illegal monopoly in the online advertising space. This decision has raised concerns about the company’s financial future. At the same time, Alphabet is preparing to announce its own quarterly earnings report on Thursday. Analysts at Moffett Nathanson have said that legal taxes could disadvantage Alphabet’s profits over the long run. This compounds a previously unnoticed layer of uncertainty as the company continues to wrestle with existing tariff challenges.
Additionally, Comerica Incorporated’s stock had a sharp decline of over 4%. That decrease came after the bank’s announcement of a projected decrease in average loans and deposits for fiscal year 2025. Comerica wasn’t buying any of that gloom, reporting first-quarter earnings per share of $1.25. That figure crushed analysts’ estimates of $1.16, per FactSet. This mixed bag of results showcases the continued struggle among financial institutions during these uncertain times as credit markets continue to rapidly shift.
In the automotive industry, shares of Hertz Global Holdings (HTZ) plummeted by 6.4%. The stock has had a stunning 112% rally since hedge fund manager Bill Ackman disclosed a $1 billion investment in the company. This increase was quickly followed by a drop. Ackman is confident that given the current tariff regime, Hertz is “uniquely well-positioned.” He expects this would raise used car prices as a result of higher auto duties. Pershing Square Capital Management has successfully taken a 19.8% position in Hertz, through outright share ownership and total return swaps.
MicroStrategy’s stock price enjoyed a slight uptick this past Monday. That increase happened alongside a bitcoin price increase of almost 4%. This rally in crypto happened even as the wider markets were being sold off. What’s more, the U.S. dollar fell to its lowest point in three years, emphasizing the continued demand for digital assets.
Nvidia Corporation faced significant challenges as its stock led the Dow Jones Industrial Average’s slump with a more than 5% decline during Monday’s session. The tech firm saw its shares slide nearly 3% on Thursday and almost 7% on Wednesday after announcing a $5.5 billion charge resulting from new export controls on its H20 graphics processing units destined for China and other markets. The semiconductor sector felt this impact as stocks for companies like Taiwan Semiconductor Manufacturing, Advanced Micro Devices, and Broadcom declined.
Netflix Inc. soared more than 8% after a better-than-expected first-quarter earnings report. Due to revenue surprise, the numbers highlighted once again the resilience of its subscriber base and content library.
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