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Today is Tuesday, October 22, 2024.

The Early Bird Index today is 75.39.

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SAP's Booming Cloud Revenue 🚀

SAP SE (NYSE: SAP) jumped 3.54% in after-hours trading on Monday after the software company posted mixed financial earnings results along with a clear booming business unit.

Financials: SAP reported earnings of €1.23 per share in the past quarter, which was better than expected. Revenue only reached €8.47 billion, which was lower than expected.

Powering the Story: Revenue in the cloud segment jumped 25% in the quarter. (Wow!)

Outlook: The company is also raising its outlook for cloud and software revenue, operating profit, and free cash flow.

Early Bird’s Nest Egg Gains: Enterprise cloud spending has seen significant growth in 2024 due to artificial intelligence investments, a continued digital transformation, and improved economic prospects.

Final Thoughts: SAP is up 52% this year. These results could be a sign of good things to come for other cloud stocks.

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Notables

Notable Earnings Today: GE Aerospace (NYSE: GE), Verizon Communications (NYSE: VZ), Enphase Energy (Nasdaq: ENPH), General Motors (NYSE: GM), Texas Instruments (Nasdaq: TXN), Lockheed Martin (NYSE: LMT), 3M (NYSE: MMM), Packaging Corp of America (NYSE: PKG), Seagate Technology (Nasdaq: STX), RTX (NYSE: RTX), Baker Hughes (Nasdaq: BKR), Freeport-McMoRan (NYSE: FCX), Canadian National Railway (NYSE: CNI), Brandywine Realty (NYSE: BDN), Quest Diagnostics (NYSE: DGX), Enova International (NYSE: ENVA), Philip Morris International (NYSE: PM), Nabors Industries (NYSE: NBR), Sherwin-Williams (NYSE: SHW), PennyMac (NYSE: PFSI), A.O. Smith (NYSE: AOS), Atlantic Union Bankshares (NYSE: AUB), Banc of California (NYSE: BANC), Community Financial System (NYSE: CBU), CoStar Group (Nasdaq: CSGP), Danaher (NYSE: DHR), Denny's (Nasdaq: DENN) East West Bancorp (Nasdaq: EWBC), Fiserv (NYSE: FI), GATX (NYSE: GATX), Genuine Parts (NYSE: GPC), Herc Holdings (NYSE: HRI), Interpublic (NYSE: IPG), Invesco (NYSE: IVZ), Kimberly-Clark (NYSE: KMB), Manhattan Associates (Nasdaq: MANH), Moody's (NYSE: MCO), PACCAR (Nasdaq: PCAR), Pentair (NYSE: PNR), Polaris Industries (NYSE: PII), PulteGroup (NYSE: PHM), Range Resources (NYSE: RRC), Stride (NYSE: LRN), Vicor (Nasdaq: VICR).

Notable IPOs Today: SAG Holdings Limited Ordinary Shares (Nasdaq: SAG), Jinxin Technology Holding Company American Depositary Shares (Nasdaq: NAMI), National Energy Services Reunited Corp Ordinary Shares (Nasdaq: NESR), HUHUTECH International Group Inc. Ordinary Shares (Nasdaq: HUHU), Aldel Financial II Inc. Units (Nasdaq: ALDFU), High Roller Technologies, Inc. (NYSE American: ROLR).

Notable Equity Crowdfunding Campaigns Ending Today: MyCoachingTree (Republic).

Notable Economic Events Today: API Weekly Crude Oil Stock (4:30 p.m. ET).

Cheesecake Factory's Breakup

Restaurant company Cheesecake Factory (Nasdaq: CAKE) jumped 4.64% in after-hours trading on Monday after a report came out about its potential future.

Details: The Wall Street Journal reported that activist investor JCP Investment Management is urging Cheesecake Factory to spin out three of its restaurant brands: North Italia, Flower Child, and Culinary Dropout. The company has not commented on the report.

Final Thoughts: Cheesecake Factory’s stock is up 23% this year.

Medpace Reports Lower Sales

Clinical research company Medpace (Nasdaq: MEDP) plunged 10.76% in after-hours trading on Monday after reporting revenue that was lower than expected.

Final Thoughts: Before these results, the stock was up 15% this year.

Trends to Watch

A Whole New World: Disney Says It Will Hire a New C.E.O. in ‘Early 2026’ (New York Times)

New Solana Offering: VanEck Adds Staking Rewards to Solana Investment Product in Europe (Decrypt)

Big Tech Race: Nvidia Reaches $3.5 Trillion Market Value. It’s Right on Apple’s Heels. (Barron’s)

Hidden Treasure: Researchers say Arkansas may have 19M tons of lithium critical for battery power (The Hill)

Decline: Bitcoin falls under $67K as stocks sell-off, but BTC derivatives are stable (Cointelegraph)

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_{The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.}