Key Points

• Tech giants Microsoft and Google report strong quarterly results
• Microsoft reports strong q3 earnings, optimistic about AI future
• Warner Bros. CEO outlines the company's release strategy
• Midsized US banks rally in premarket after deposit stabilization news

Tech giants Microsoft and Google report strong quarterly results

Tuesday's stock market decline was significant as investors feared a potential new banking crisis. After the lender's quarterly report indicated more withdrawals than anticipated amid March's banking crisis, First Republic Bank shares dropped by roughly 50%. However, Wednesday might end up being better as two titans of the tech industry released encouraging quarterly reports. (See underneath.) Additionally, Boeing will report before the bell and Facebook's parent company Meta will report after the closing bell.

Microsoft reports strong q3 earnings, optimistic about AI future

Microsoft reported fiscal third-quarter results that surpassed analysts' expectations, resulting in a 9% increase in its shares during extended trading. The software company's revenue rose 7% to $52.86 billion from $49.36 billion last year, and its net income increased 9% to $18.3 billion, or $2.45 per share, up from $16.73 billion, or $2.22 per share, a year earlier. Amy Hood, the vice president of finance at Microsoft, predicted $54.85 to $55.85 billion in sales for the fourth quarter, with a median estimate of $55.35 billion, a 6.7% increase over the consensus estimate. Microsoft's Intelligent Cloud business area, which includes Azure public cloud, Enterprise Services, SQL Server, and Windows Server, produced $22.08 billion in revenue, a 16% increase over analysts' consensus estimate. The More Personal Computing segment, which includes Bing, Windows, Surface, and Xbox, generated $13.26 billion in revenue, a 9% decline, but more than the $12.25 billion analysts estimate.

Warner Bros. CEO outlines the company's release strategy

At CinemaCon, the major industry gathering taking place this week in Las Vegas, Warner Bros. put on quite the show on Tuesday. The studio has high expectations for both "Barbie," a July release, and "The Flash," a DC Comics spectacular that debuted in June and completely astounded conference guests. However, the presentation was more than just a display of the company's filmography. David Zaslav, CEO of Warner Bros. Discovery, and his release plan are in the spotlight. According to him, the studio plans to release 16 films this year and 20 films annually moving forward. Zaslav also stated that he wants WBD's films to play in cinemas for a very long time and is not in a rush to have them available on the platform, despite the fact that WBD is getting set to launch its highly anticipated Max streaming service.

Midsized US banks rally in premarket after deposit stabilization news

After PacWest Bancorp stated that deposits steadied around the end of March and "rebounded nicely" in April, concerns over the lender's health following prior financial difficulties were allayed. Following a significant decline yesterday caused by First Republic Bank's worse-than-expected decline in deposits, the bank also outperformed. According to some with knowledge of the situation, the lender is considering selling $50 billion to $100 billion worth of assets in an effort to close the gap between its assets and obligations.