Alphabet (GOOG, GOOGL)

Shares in Google-parent Alphabet closed Wednesday's session 7.5% in the red, after it was reported that Apple's (AAPL) senior vice president of services, Eddy Cue, revealed the iPhone-maker was exploring integrating AI search into its Safari browser.

Bloomberg reported that Cue disclosed the plans in his testimony at in Alphabet's antitrust trial. Last year, a federal judge ruled that Google maintained an illegal monopoly through its search business. During the trial, it was revealed that Google pays Apple $20bn (£15bn) a year to use its search engine as the default search option in Safari.

Read more: FTSE 100 LIVE: Stocks rise as Bank of England expected to cut UK interest rates

In addition, Cue reportedly said during his testimony that Apple saw a drop in searches in Safari for the first time last month.

"Despite solid growth last quarter, it’s a fresh signal that Google’s dominance could be under real pressure," said Matt Britzman, senior equity analyst at Hargreaves Lansdown. "Still, the 7.5% selloff feels like an overreaction for a stock already trading at a discounted multiple, especially since search revenue hasn’t missed a beat, even with the rise of ChatGPT.

"It’s clear Alphabet’s role as the internet’s gatekeeper is starting to fade, but it still has a big opportunity to lead in a larger AI-driven web – it doesn't need the entire pie to keep growing," he added.

Nvidia (NVDA)

Shares in Nvidia (NVDA) rose 3% on Wednesday and were up a further 1.8% in pre-market trading on Thursday, after Bloomberg reported that the Trump administration plans to repeal AI chip export restrictions passed under former president Joe Biden.

The US Commerce Department confirmed the regulatory shift in a statement to Reuters and Axios, saying Biden's AI rule was "overly complex" and "overly bureaucratic."

Read more:Gold falls as investors eye potential UK-US trade deal

"We will be replacing it with a much simpler rule that unleashes American innovation and ensures American AI dominance," a spokesperson said.

This AI diffusion rule, was passed by Biden in January and was set to come into effect in May, though president Trump will not enforce the policy, according to unnamed sources cited by Bloomberg. The rule uses a tiered system to cap the amount of AI chips that could be exported to key US trading partners in an attempt to thwart chip smuggling to China through other countries.

NasdaqGS - Delayed Quote•USD

(NVDA)

Follow  View Quote Details

117.06

-

+(3.10%)

At close: May 7 at 4:00:02 PM EDT  Advanced Chart

Disney (DIS)

US media and entertainment giant Disney (DIS) posted an earnings beat on Wednesday and raised its full-year profit forecast, driving shares to surge nearly 11%.

Story Continues

Revenue of $23.62bn in the second quarter bested expectations of $23.05bn and was up 7% on the same period last year. Adjusted earnings per shares of $1.45 were also ahead of the $1.20 expected by analysts polled by Bloomberg, and were up 20% from a year ago.

The company saw strong performance in its streaming service, Disney+, which added 1.4 million subscribers in the quarter, a beat compared to the 1.25 million subscriber loss analysts polled by Bloomberg had expected. At the same time, Disney reported a drop of 700,000 paying users in Q1 as a result of expected user churn from recent price hikes.

Read more: Stocks that are trending today

Disney's domestic parks business also experienced a rebound in the second quarter, with a 13% rise in operating income, compared to the 5% decline the company reported in Q1.

In the results, Disney raised its full-year profit forecast to $5.75 per share, which would be ahead of analyst expectations of $5.44 a share.

Shortly after its earnings update, Disney announced plans to build a new theme park and resort in Abu Dhabi, United Arab Emirates, which would be its first major expansion into the Middle East and its seventh global resort.

NYSE - Delayed Quote•USD

(DIS)

Follow  View Quote Details

102.09

-

+(10.76%)

At close: May 7 at 4:00:23 PM EDT  Advanced Chart

Puma (PUM.DE)

In Europe, shares in Puma (PUM.DE) jumped 7% on Thursday morning, after the German sportswear company reported its first quarter results.

Puma posted flat currency-adjusted sales in the first quarter at €2.08bn (£1.76bn), though adjusted earnings before interest and tax (EBIT) were down 52% to €76m.

However, the company kept its outlook for the year unchanged, guiding to currency-adjusted sales growth of a low to mid-single digits percentage rate and adjusted EBIT of between €520m and €600m.

Stocks: Create your watchlist and portfolio

Puma is currently operating without a CEO, as former chief Arne Freundt exited the business in April, with ex-Adidas exec Arthur Hoeld due to take over in July.

In a note on Thursday, Deutsche Bank (DBK.DE) analysts kept a "buy" rating on the stock. "Puma delivered a slightly better-than-expected 1Q print against its lowered guidance and this has given them the confidence to hold the FY guidance before the impact of tariffs," they said.

Next (NXT.L)

On the UK's FTSE 100 (^FTSE), retailer Next (NXT.L) reported strong quarterly results, though shares were little changed on Thursday morning.

Next posted an 11% increase in full-price sales in the first quarter compared with the same period last year, which the company said was £55m ($73m) ahead its forecast.

The retailer attributed the over-performance to warmer weather, boosting sales of summer clothing, and warned it was likely that some of these sales had been pulled forward from the second quarter. As a result, Next said it was not increasing its sales guidance for the second quarter, or the rest of the year.

Read more: Bitcoin price nears $100k amid US-UK trade deal optimism

At the same time, in accounting for that £55m of additional Q1 sales, the company said it was increasing its group profit before tax for the year by £14m to £1.08bn.

Mamta Valechha, consumer discretionary analyst at Quilter Cheviot, said: "For investors, Next is proving to be a high quality and defensive company, which given the backdrop of a cautious UK consumer will be beneficial going forward.

"It has been performing strongly of late, however, we think the changing profile of the business, giving Next diversified growth avenues, negligible tariff exposure and consistent performance can provide support to this valuation."

Other companies in the news on Thursday 8 May:

Arm Holdings (ARM)

Toyota (7203.T)

Nintendo (7974.T)

Warner Bros Discovery (WBD)

Read more:

The most bought stocks and funds for investors in April UK house prices rise for the first time since January UK taxes may need to rise in autumn, Rachel Reeves warned

Download the Yahoo Finance app, available for Apple and Android.

View Comments