U.S. stock index futures were relatively flat on Wednesday as investors awaited key data on inflation. Here are some top stocks to keep an eye on:
### Tencent (OTCPK:TCEHY)(OTCPK:TCTZF)
Shares of Tencent, the Chinese internet services giant, were in focus after the company reported its Q2 results. Tencent, known as the world’s largest video game company and operator of the WeChat messaging platform, saw its quarterly revenue increase by 8% year-over-year to RMB 161.12 billion ($22.55 billion). This growth was driven by a return to revenue growth in Tencent’s core domestic gaming business, particularly due to the success of DnF Mobile, which was launched in May. Overall, domestic games revenue improved by 9% year-over-year to RMB 34.6 billion ($4.84 billion).
### Victoria’s Secret (VSCO)
Victoria’s Secret stock surged over 16% ahead of the opening bell following the announcement of Hillary Super as its new CEO. Super, who joins from Rihanna’s Savage X Fenty brand, will succeed Martin Waters in the role. The company’s board chair, Donna James, stated that Super will focus on accelerating growth in Victoria’s Secret’s core business in North America. Additionally, Victoria’s Secret announced preliminary Q2 results for sales, adjusted operating income, and adjusted earnings per share that exceeded company guidance.
### Cisco (CSCO)
Investors will be closely watching Cisco as the networking giant is set to report its FQ4 2024 numbers after the closing bell. Analysts expect Cisco, based in San Jose, California, to earn 85 cents per share on revenue of $13.54 billion. Both metrics are anticipated to decline year-over-year, reflecting general weakness in the networking industry due to ongoing inventory digestion and customers prioritizing spending on artificial intelligence. Cisco has also been implementing layoffs this year.
### Alphabet (GOOGL, GOOG)
Class A and class C shares of Alphabet, the parent company of Google, saw a decline of over 1% ahead of the market open. This drop followed a report from Bloomberg News that the U.S. Department of Justice is considering pursuing a breakup of Google. The Justice Department’s move comes after its recent victory in an antitrust case against Alphabet. If pursued, this would mark the first attempt to break up a monopoly company since the failed attempt to split up Microsoft in 2001.
Overall, these stocks are likely to see significant movement on Wednesday as investors digest the latest developments and financial results.
