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Sony (SONY) shares surge on potential semiconductor spin-off. (00:25) Waymo (GOOG) (GOOGL), Toyota (TM) to collaborate on self-driving tech for personal cars. (01:06) Key takeaways from Snap’s (SNAP) Q1 earnings, with stock slipping. (01:50)
This is an abridged transcript.
Shares of Sony Group (NYSE:SONY) rose on the Tokyo Stock Exchange on Wednesday following reports that the company is considering spinning off its semiconductor unit.
The stock rose 7.1% in Tokyo, its highest close since March 28.
It provided the biggest boost to Japan’s benchmark Topix index on Wednesday, which climbed 0.6%. The nation’s markets were closed for a holiday Tuesday.
Sources familiar with the matter told Bloomberg that the semiconductor spin-off could occur as early as this year, though no formal announcement has been made.
Investors have responded positively, betting that structural reforms could better highlight Sony’s diversified business strengths across electronics, entertainment and technology.
Alphabet’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Waymo and Toyota Motor (NYSE:TM) announced a preliminary deal to jointly explore developing a new autonomous vehicle platform and ways to enhance next-generation personally owned vehicles.
The collaboration will focus on further accelerating the development and deployment of driver assistance and automated driving technologies. “The scope of the collaboration will continue to evolve through ongoing discussions,” the companies said.
Toyota’s (NYSE:TM) autonomous driving technology unit Woven by Toyota will also join the potential collaboration.
Last week, Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) CEO Sundar Pichai signaled the possibility of personal ownership of Waymo robotaxis in the future.
Snap stock (NYSE:SNAP) is down 13% in premarket trading after the company posted an unexpected loss despite topping revenue expectations.
Snap also omitted guidance amid an uncertain macroeconomic environment.
Revenue grew 14% year-over-year to $1.36B, topping analyst consensus for $1.34B.
And earnings before interest, taxes, depreciation and amortization made a better-than-expected surge, more than doubling to $108.4M.
The company trimmed its losses, but still posted a net loss of $139.6M (vs. a year-ago loss of $305.1M) as cost of revenue and G&A costs continued swelling.
Daily active users rose 9% year-over-year to 460M, just ahead of expectations, with growth in Europe and elsewhere more than making up for a slight decline in North America (-1% to 99.87M).
The company expects daily active users to hit 468M by the end of the second quarter.
What’s Trending on Seeking Alpha:
General Motors recalls ~600K Cadillac, Chevrolet and GMC cars over engine failure risk
Fed’s preferred inflation gauge expected to cool further in March
Starbucks says behind the scenes its turnaround is brewing as it manages tariff risk
Catalyst watch:
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Notable companies due to report include Microsoft (MSFT), Meta Platforms (META), Qualcomm (QCOM), Caterpillar (CAT), Allstate (ALL), Metlife (MET), and Yum Brands (YUM). Options trading implies a double-digit share price swing for Sleep Number (SNBR) and Oatly (OTLY) after their reports are released.
Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in mixed territory. Crude oil is down 1% at $59/barrel. Bitcoin is up 0.5% at $94,000. Gold is down 1% at $3,284.
The FTSE 100 is flat and the DAX is up 0.8%.
The biggest movers for the day premarket: Seagate Technology (NASDAQ:STX) +9% – Shares soared after delivering stronger-than-expected FQ3 results and providing a bullish outlook for the current quarter.
On today’s economic calendar:
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8:30 am GDP
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8:30 am Treasury Refunding Announcement
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10:00 am Personal Income and Outlays
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10:00 am Pending Home Sales Index
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