Here are five things you must know for Friday, Oct. 27:
- Microsoft's Cloud Transformation Drives Earnings, Revenue Beats
- Intel Tops Estimates for Q3 Earnings, Revenue
Alphabet reported third-quarter net income of $6.73 billion, or $9.57 a share, coasting past analyst estimates of $8.31. Revenue surged 23% year over year to $27.7 billion, higher than the $27.2 billion analysts were expecting.
Traffic acquisition costs, or what Google pays to get ads in front of mobile users, spiked 54% during the quarter but Wall Street didn't seem too concerned since Google's overall ad business continues to grow.
"Overall, we believe this was an excellent quarter for the company and illustrates our confidence to point out buying opportunities whenever the stock dipped to the lower $900s," said Jim Cramer and the AAP team.
Adjusted earnings in the quarter were 52 cents a share, trouncing consensus estimates of 3 cents. Revenue climbed 34% from a year earlier to $43.7 billion and beat analyst estimates of $41.5 billion.
The company provided upbeat guidance for its seasonally big fourth quarter, saying it expects revenue to come in between $56 billion and $60 billion, higher than consensus estimates of $54.2 billion.
Amazon's cloud computing product, Amazon Web Services, saw sales jump 42% annually to $4.6 billion, above forecasts of $4.51 billion.
Amazon's international e-commerce reporting segment saw revenue rise 29% to $13.7 billion, a big improvement from the 17% growth in the second quarter.
But no should be blindsided, they said. CVS has been increasingly focusing on healthcare ventures, with its acquisition of pharmacy benefit management companies -- Caremark Rx in 2006 and then Omnicare Inc. in 2015 -- as well as with its expansion of in-store clinics and long-term care.
"At this point, CVS is definitely more of a healthcare company with a retail presence than the other way around," said Jeremy Bryan, a portfolio manager at Gradient Investments, a minor CVS shareholder.
Still, a traditional insurer's entrance into retail is a first, with the integration's of those two fields undefined. All that, Bryan told TheStreet, is for CVS to answer.
The Wall Street Journal, citing people familiar with the matter, reported that CVS has made a bid to buy Aetna for more than $200 a share.
Aetna shares closed on Thursday at $178.60, up 11.5%. The stock was rising 1% in premarket trading on Friday.
Clariant and Huntsman said Friday they had agreed to call off their planned $20 billion merger by mutual agreement. The company had been under pressure from activist investor White Tale Holdings that claimed the deal significantly undervalued the Swiss company.
This story has been updated to include additional earnings reports.
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