Cisco Systems made waves in after-hours trading with a 6% jump in its stock price. The networking company reported an earnings and revenue beat for its fiscal fourth quarter, which can be seen as a positive sign. However, Cisco also announced that it will be cutting 7% of its global workforce. Additionally, both revenue and earnings for the fiscal year dropped from the prior year, marking its first decline since 2020. This news could potentially signal some challenges ahead for Cisco despite the positive quarterly results.
Ulta Beauty: Berkshire Hathaway’s Vote of Confidence
Ulta Beauty saw its shares pop about 12% after Warren Buffett’s Berkshire Hathaway revealed a new stake in the cosmetics company worth $266 million. While this may seem like a small position for Berkshire, it is still a significant vote of confidence in Ulta Beauty. The market’s reaction to this news reflects investor optimism about the potential for growth and success in Ulta Beauty’s future.
Snowflake: A Disappointing Turn of Events
In contrast to Ulta Beauty, Snowflake experienced a decline in its shares after Berkshire Hathaway entirely dissolved its stake in the cloud company in the second quarter. This move by Berkshire Hathaway may have contributed to the 1% slip in Snowflake’s shares in after-hours trading. Investors who were previously bullish on Snowflake may now be reevaluating their positions in light of Berkshire Hathaway’s decision.
Nike shares climbed more than 5% after Bill Ackman’s Pershing Square revealed a new stake in the athletic apparel and sneaker company. This vote of confidence from a prominent investor like Ackman likely contributed to the positive movement in Nike’s stock price. Investors may view this as a signal of potential growth and success for Nike in the market.
Lumentum Holdings saw its shares soar nearly 14% following a fourth-quarter earnings and revenue beat. The optical products provider posted earnings of 6 cents per share, excluding items, surpassing analysts’ expectations. Additionally, revenue for the quarterly period exceeded analysts’ forecasts. This strong performance likely contributed to the significant increase in Lumentum’s stock price in after-hours trading.
The after-hours market movers featured a mix of positive and negative developments for the companies involved. While some companies like Cisco Systems and Ulta Beauty received votes of confidence from major investors, others like Snowflake faced challenges with significant changes in their investor base. Ultimately, these after-hours trading events highlight the dynamic nature of the stock market and the importance of carefully monitoring market movements and developments.