Stock futures point to slight gains
U.S. stocks are set to open slightly higher on Wednesday, supported by blockbuster results from Amazon (NASDAQ: AMZN) and Google-parent Alphabet (NASDAQ: GOOG) yesterday.
At 5:40 a.m. ET, the blue-chip Dow futures were up 41 points, or 0.13% to 30,627. The S&P 500 futures edged 14.08 points, or 0.37% higher to 3,832.38 while the tech-heavy Nasdaq 100 futures rose 86 points, or 0.64% to 13,535.
Meanwhile, the Reddit-driven short squeeze seems to be dissipating with shares in GameStop (NYSE: GME), Koss (NASDAQ: KOSS), AMC (NYSE: AMC) and Express (NYSE: EXPR) plummeting during the previous session.
GME stock plunged 60% and Koss stock 43%. AMC stock fell 41% and EXPR stock 32%.
Bezos steps down as Amazon CEO
Amazon’s billionaire founder and CEO Jeff Bezos has said he will step down from the role in the third quarter of this year.
The online retail giant announced the decision on Tuesday saying Bezos will step down in the third quarter of this year as CEO, to become executive chairman.
The 57-year-old will be replaced by Andy Jassy, who has been with Amazon since 1997 and is the current head of the Amazon Web Services (AWS). Bezos said in a blog post that he has “full confidence” in Jassy.
The announcement came as Amazon reported better-than-expected fourth holiday quarter earnings. Amazon reported adjusted earnings of $14.09 per share on revenue of $125.6 billion. Analysts expected the company to post earnings of $7.19 a share on revenue of $119.7 billion.
Google smashes Wall Street forecasts
Alphabet, the owner of search engine Google, also reported its fourth-quarter earnings late Tuesday that surpassed analysts’ expectations.
The tech giant said revenue in the quarter ended December grew by 23% on a year-over-year basis to $56.9 billion. Earnings per share came in at $22.30, up 45.28% from the prior-year quarter.
Analysts expected the company to post earnings of $15.90 per share on revenue on revenue of $53.13 billion.
Alphabet shares were indicated $141.71, or 7.35% to $2,069.22 each in pre-market trading Wednesday.
Apple planning to invest $3.6 billion in Kia Motors as part of EV collaboration
Shares of Hyundai Motor (OTCPK:HYMLF) affiliate, Kia Motors surged 10% in South Korea after Reuters reported, citing local media, that Apple (NASDAQ: AAPL) will invest $3.6 billion as part of a deal with the automaker to make electric vehicles.
According to the report, the deal between Apple and Kia may be announced on February 17. The deal will reportedly result in the manufacture of 100K electric vehicles per year at Kia’s plant in Georgia.