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News of the day for April 26, 2023


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Microsoft (MSFT) and Alphabet (GOOG) shares surged in extended trading after beating analyst estimates for earnings and revenue, and U.K. regulators moved to block Microsoft’s $75 billion deal to buy game maker Activision Blizzard. Here’s what investors need to know today.

1. Microsoft and Alphabet Shares Rose as Earnings and Revenue Beat Estimates

Shares of Microsoft jumped over 7% in pre-market trading and shares of Google parent Alphabet rose 1% after reporting results that beat analyst estimates. Microsoft's revenue was up 7% from a year ago, with the company’s More Personal Computing unit posting sales above the company’s guidance range with 18% growth in its Windows commercial business, despite recent signs of slowing PC sales. Microsoft bought back $4.6 billion of stock in the quarter.

Google parent Alphabet also beat analyst estimates for earnings and revenue for the first quarter, and announced a $70 billion stock buyback. Alphabet’s per share profits were down 5% from a year ago due to $2.6 billion in one-time charges tied to cost-cutting. 

2. UK Regulators Reject Microsoft’s $75 Billion Deal to Buy Activision Blizzard

U.K. regulators blocked Microsoft’s $75 billion deal to buy game maker Activision Blizzard, raising challenges in Microsoft’s attempt to complete the deal. The move comes before decisions from the European Union and the U.S. Federal Trade Commission.

3. 3M Trims 6,000 Jobs to Cut Costs

3M will cut about 6,000 jobs globally in a second round of layoffs this year as the industrial conglomerate looks to rein in costs amid waning demand for consumer electronics. 3M says it will shift its focus to high-growth businesses including automotive electrification and home improvement, and will prioritize emerging growth areas such as climate technology and next generation consumer electronics.

4. Chipotle Mexican Grill Shares Climb on Revenue and Earnings Beat

Chipotle Mexican Grill (CMG) shares are gaining over 7% in pre-market trading after it said restaurant traffic rose despite price increases. The restaurant chain's earnings and revenue topped analyst estimates. Same-store sales rose 10.9%, also beating projections of 8.6%.

5. Gap to Lay Off 500 Workers

Gap plans to lay off 500 corporate employees in its latest round of job cuts. The current round of layoffs is larger than cuts announced last September that were an effort to save $250 million annually.

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  1. Financial Times. “Microsoft and Alphabet earnings show signs of resilience.”

  2. Wall Street Journal. “Microsoft’s $75 Billion Deal for Activision Blizzard Rejected by U.K.

  3. CNN. “3M announces mass layoffs as manufacturing slows.”

  4. CNBC. “Chipotle Mexican Grill’s restaurant traffic grows as the chain proves its pricing power.”

  5. CNBC. “Gap will cut more than 500 workers in latest layoffs, as struggling retailer tries to reduce costs.”

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