Paramount Global (PARA, Financial) shares soared in premarket trading following a substantial takeover bid from media mogul Byron Allen. Allen's Allen Media Group proposed a $14.3 billion offer for the media giant, suggesting a significant premium on both voting and non-voting shares. The offer, which includes debt and equity, is intended as a comprehensive solution for Paramount shareholders, and the company is urged to seriously consider the bid. This news sent Paramount's stock up by 21%, indicating strong market reactions to potential acquisitions.
Meanwhile, the technology sector faced challenges as major companies like Alphabet (GOOG, Financial), Microsoft (MSFT, Financial), and AMD (AMD, Financial) experienced premarket declines after their earnings reports. Alphabet and AMD's quarterly results fell short of investor expectations, leading to a drop in their share prices. AMD's report showed that despite strong performance in its data center business, weaker outlooks in other segments such as gaming and PCs led to a cautious stance from investors. Microsoft, on the other hand, saw praise for its AI strategy and potential for future growth, despite a slight premarket dip.
Financial institutions also made headlines, with New York Community Bancorp (NYCB, Financial) witnessing a significant stock price drop after reporting a quarterly loss and dividend cut. The bank's results were impacted by preparations for stricter capital requirements following its acquisitions of Flagstar Bank and Signature Bank. NYCB's move to bolster its reserves and reduce its dividend comes as it navigates the aftermath of last year's banking turmoil and the crossing of the $100 billion asset threshold.
Consumer-focused companies like Starbucks Corporation (SBUX, Financial) and Thermo Fisher Scientific (TMO, Financial) also reported financial results. Starbucks shares rose after maintaining its earnings per share and global store growth guidance, despite missing Q1 estimates. Thermo Fisher's shares, however, slipped as its 2024 outlook fell short of expectations, despite posting better-than-expected Q4 results and a strong performance in its analytical instruments segment.
Other notable movements in the stock market included SoFi Technologies (SOFI, Financial), which saw a decline after a downgrade from Morgan Stanley, and Tesla (TSLA, Financial), which faced new uncertainty after a judge invalidated Elon Musk's 2018 compensation package. Verizon Communications (VZ, Financial) was downgraded by Barclays, citing a fairer valuation alignment, while Mastercard (MA, Financial) reported better-than-expected Q4 earnings and revenue, albeit with a slight premarket share decline.
Rocket Lab USA (RKLB, Financial) launched its first Electron mission of the year, deploying satellites for Spire Global and NorthStar Earth & Space, and provided preliminary Q4 guidance. The company expects to have a busy launch schedule for the year ahead.
Finally, the Chinese stock market continued its selloff, with the CSI 300 index hitting a five-year low amid concerns over the economy and weak manufacturing data. This downturn comes despite recent measures by Chinese officials to boost market confidence, including a potential CNY 2 trillion rescue package.
