EBay, Tesla, Taiwan Semiconductor, Alaska Air and more

Check out the companies making headlines before the bell. Taiwan Semiconductor Manufacturing — U.S.-traded shares of the Taiwanese chipmaker fell 2.4% despite beating revenue and profit expectations in the first quarter. The company reported no structural damage from the earthquake in Taiwan earlier in April, but noted some wafers “had to be scrapped.” Most of the lost production will be recovered in the second quarter, according to management. TSMC forecasts healthy growth in 2024 and guided second-quarter revenue to a range between $19.6 billion and $20.4 billion. Tesla — Shares of the electric vehicle maker were down more than 2% after a Deutsche Bank downgrade to hold from buy. “The delay of Model 2 efforts creates the risk of no new vehicle in Tesla’s consumer lineup for the foreseeable future, which would put continued downward pressure on its volume and pricing for many more years,” the bank said. D.R. Horton — Shares jumped 3.3% after the homebuilder topped expectations in its fiscal second quarter. D.R. Horton earned $3.52 per share and revenue of $9.11 billion. Analysts polled by LSEG had forecasted $3.06 per share and $8.27 billion in revenue. Alaska Air — The airline added nearly 3% following better-than-expected first-quarter results. Losses per share of 92 cents ex-items was lower than analysts’ estimates of $1.05, according to LSEG. Revenue came in at $2.23 billion, topping forecasts of $2.19 billion. Blackstone — The asset manager slipped 2.2% after lowering its dividend to 83 cents per share from 94 cents per share. Meanwhile, earnings in the first quarter came in at 98 cents per share, slightly higher than consensus estimates of 96 cents, per LSEG. Alcoa — The stock gained 2.4% after the aluminum producer beat first-quarter revenue expectations. Alcoa posted $2.6 billion in revenue, exceeding the LSEG consensus estimate of $2.56 billion. On the other hand, the company posted a wider-than-expected loss of 81 cents per share, excluding items. That was more than the anticipated loss of 55 cents per share. eBay — Shares of the e-commerce stock rose nearly 4% following a double upgrade at Morgan Stanley to overweight from underweight. The e-commerce stock appears undervalued relative to its peer Etsy, according to Morgan Stanley. Etsy — The e-commerce stock slumped nearly 5% following a downgrade by Morgan Stanley to underweight from equal weight. Margin expansion appears constrained, said the firm, which is bearish on Etsy’s medium-term growth outlook. Match Group — Shares slipped nearly 2% after Morgan Stanley downgraded shares to equal weight from overweight. The firm cited slowing growth in online dating. Elevance Health — The health insurance company’s shares climbed 3.3% after reporting an earnings beat and raising its full-year guidance. The firm posted $10.64 earnings per share ex-items in the first quarter, while analysts had estimated $10.52, according to FactSet. Meanwhile, revenue came slightly below estimates. Zoom Video Communications — The software company rose about 2% after Rosenblatt Securities upgraded the stock to buy from neutral. The firm is optimistic on Zoom’s “refocused” channel strategy and its healthy balance sheet. — CNBC’s Alex Harring, Sarah Min, Jesse Pound and Fred Imbert contributed reporting.

Taiwan Semiconductor Manufacturing (TSMC) reported strong first-quarter results despite some production setbacks due to an earthquake in Taiwan. The company forecasts healthy growth for 2024 and expects to recover lost production in the second quarter. Tesla shares fell after a downgrade from Deutsche Bank, citing risks related to delayed Model 2 efforts. D.R. Horton, Alaska Air, and Alcoa all beat earnings expectations, leading to stock price increases. Blackstone lowered its dividend, while EBay saw a rise in shares after a double upgrade from Morgan Stanley. Etsy and Match Group saw declines following downgrades from the same firm. Elevance Health reported an earnings beat and raised its full-year guidance, leading to a rise in stock price. Zoom Video Communications rose after an upgrade to buy from Rosenblatt Securities.

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