Tech stocks recover after hours on positive earnings from Tesla and Microsoft

Key Points
  • Tesla and Microsoft both beat earnings expectations on Wednesday.
  • The strong reports helped raise tech stocks after hours. Tech stocks were negative for most of trading Wednesday.
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After a dismal day for tech stocks, Tesla and Microsoft earnings pulled up stocks after hours across the sector.

The Nasdaq was up 4.63 percent in after-hours trading after Tesla and Microsoft both crushed third-quarter earnings.

Microsoft reported $29.08 billion in revenue for its fiscal first quarter, beating expectations of $27.90 billion according to Refinitiv. Earnings per share were 18 cents higher than estimates, excluding certain items.

Tesla reported $6.82 billion in revenue compared with an expected $6.33 billion according to Refinitiv. Earnings were $2.90 a share, compared with an expected loss of 19 cents per share.

Prior to the earnings releases, the Nasdaq Composite Index closed down 4.43 percent on Wednesday. Microsoft closed down 5.35 percent, and Tesla closed down 1.92 percent.

Facebook and Apple each jumped about 1 percent in postmarket trading. Netflix, which closed down over 9 percent, rose over 1.5 percent after the bell, as did Amazon. Alphabet also rose over 1 percent.

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Microsoft beats earnings, revenue expectations