Premarket Movers | IBM Surges 8%; Meta Jumps 7%; Tesla Gains 3%; Microsoft Drops 5%; SAP Sinks 12%

IBM beat ‌Wall Street estimates for fourth-quarter revenue and profit on Wednesday, as the rapid adoption of AI boosts demand for its software services, ranging from managing vast amounts of data to automating IT processes. Shares of the company rose 8% in premarket trading.

Instagram-owner Meta boosted its capital spending plans for this year by 73% in the pursuit of "superintelligence," an effort to offer deeply personalized ​artificial intelligence to its large social media user base.

Shareholders backed CEO Mark Zuckerberg's ambitious capital outlay, boosting Meta stock 7% in premarket trading, as the company ‌posted a 24% surge in advertising revenue - its mainstay - for the quarter ended December 31. It also forecast first-quarter revenue above Wall Street expectations.

Southwest Airlines forecast a stronger-than-expected profit in 2026 and signaled a solid start to the year despite U.S. winter storm disruptions, saying an overhaul of its business model was beginning to gain traction. The shares gained 6% in premarket trading.

Lam Research forecast third-quarter revenue above Wall Street expectations, as enterprises ramped up orders of its chipmaking tools. Shares of the company rose 6% in premarket trading following the results.

Tesla plans $20 billion of spending this year to streamline its electric-vehicle lineup and shift resources toward robotics and AI, part of a sweeping set of changes pushing the company further from its roots as an automobile manufacturer. The shares gained 3% in premarket trading.

ServiceNow gave a sales outlook in the current quarter that was stronger than expected, but failed to reduce investor anxieties that artificial intelligence will disrupt the software maker’s business. The shares dropped 5% in premarket trading.

Microsoft said it had spent a record amount on artificial intelligence in the last quarter and posted slower cloud-computing growth, worrying investors who had expected a major payoff from the outlay ​and its mega-deal with OpenAI. Microsoft's shares tumbled 5% in premarket trading after the company released its fiscal second-quarter financial results.

Celestica cruised past consensus estimates when it released its fourth quarter financial results on Wednesday, but shares had inched down 6% in premarket trading.

Shares of Las Vegas Sands slumped 10% in premarket trading after its results in the key Macao market disappointed, in part because of higher costs related to events and payroll.

SAP shares fell 12% as current cloud backlog in the fourth quarter slipped to a level that Chief Executive Officer Christian Klein previously said would be a “disappointment.”