European stock markets rise

European stock markets showed a mixed performance on Thursday, with the CAC 40 in Paris rising 1.05% to 7,970 points. This increase was driven by strong corporate results, particularly from companies like Renault and Dassault Systèmes, which saw significant gains in their stock prices.

Pluxee's stock falls sharply

Pluxee’s stock price dropped 16.4% to 11.86 euros, marking one of the biggest declines in the market. The fall was attributed to a Brazilian reform that limited commissions, sped up reimbursements to merchants, and increased competition, resulting in a 12.1% drop in Latin American revenues over the past year.

U.S. tech stocks decline

In contrast, the U.S. Nasdaq fell 1.3% on Thursday, primarily due to a decline in technology stocks. Alphabet, which owns Google, saw its stock drop 12% despite reporting quarterly revenue of $127.6 billion. The drop was linked to a slowdown in online search activity, a key source of advertising revenue.

Alphabet's performance under scrutiny

Alphabet’s stock weakness was further compounded by a slowdown in online search growth, which rose 12% compared to 16.8% in the previous quarter. Even a doubling of Google Cloud revenues to $30.7 billion failed to reassure investors, who were also concerned about the company’s cash consumption and the profitability of artificial intelligence investments.

Microsoft gains ground

Microsoft provided a more positive outlook for investors, with its stock rising 2% on Thursday. The company reported revenue of $92.3 billion, a 19% increase, and earnings per share rose 18%. Its cloud computing division, Azure, saw a 48% increase in revenue, although the company is also considering cost-cutting measures.

Central banks maintain rates

Both the American and European central banks kept interest rates unchanged on Thursday. Christine Lagarde announced her departure from the European Central Bank in February 2024, while the U.S. saw better-than-expected economic growth of 3.4% in the third quarter. However, inflation rose to 3.6%, complicating any potential rate cuts.

TotalEnergies gains from energy prices

TotalEnergies saw its stock rise 1.2% to 84.60 euros, benefiting from a surge in energy prices. The company reported a 124% increase in net profit to $8.26 billion in the third quarter, driven by higher oil prices, liquefied natural gas, and refining margins. It also raised its third dividend payment to 0.90 euros per share.

SBF 120 rankings show mixed results

The SBF 120 rankings reflected mixed performance, with MERSEN, SOITEC, and RENAULT showing the strongest gains. Conversely, PLUXEE, DBV TECHNOLOGIES, and UBISOFT experienced the most significant declines, highlighting the volatility in the market.

Investors await key data

Investors remain cautious as they await further economic data and corporate results. Upcoming reports from Amazon and Intel will be crucial for assessing the health of the technology sector. The coming days will be vital for understanding the resilience of the European economy and the impact of inflation on corporate profits.