Netflix Reports, But Investors Are Happier About These 2 Other Stocks

Markets were mixed on Tuesday, with the Nasdaq Composite (^IXIC 0.35%) and Dow Jones Industrial Average (^DJI 0.38%) losing ground but the S&P 500 (^GSPC 0.32%) rising slightly. All three indexes had a relatively quiet day, drifting close to the unchanged level throughout most of the afternoon.

Data source: Yahoo! Finance.

After the closing bell, investors kept their eyes on Netflix (NFLX -0.31%), which reported relatively weak subscriber growth but announced that it will discontinue its legacy DVD-by-mail service. Although Netflix stock was volatile in after-hours trading, there were a pair of other stocks that fared far better. Read on to learn why Intuitive Surgical (ISRG -0.32%) and Western Alliance Bancorporation (WAL -0.99%) posted solid gains late Tuesday.

Intuitive Surgical looks fit as a fiddle

Shares of Intuitive Surgical climbed 9% in after-hours trading on Tuesday afternoon. The maker of robotic surgical equipment announced first-quarter results that showed how far Intuitive has recovered in recent years.

Intuitive Surgical posted Q1 revenue of $1.70 billion, up 14% year over year. The company now boasts 7,779 da Vinci surgical system installations as of March 31, up by nearly 860 systems in the past 12 months. Adjusted net income inched higher by 6%, working out to $1.23 per share.

The best news came from surgical volume figures. Worldwide, the number of procedures using da Vinci equipment jumped 26% in Q1 compared to the same period in 2022. That came largely because COVID-19-related disruptions largely disappeared in 2023 in the U.S. market, and the reversal of China's zero-COVID policy led to an uptick in procedures there during February and March.

Artificial intelligence has gotten a lot of attention in the investing community lately, but many people don't realize that Intuitive Surgical could benefit greatly from AI adoption in the years to come. That could prove to be a major growth driver that shareholders could profit from well into the future.

Western Alliance holds up

Doing even better, Western Alliance Bancorporation saw its stock jump 15% after hours. The hard-hit regional bank stock had many investors worried about whether it would follow in the footsteps of some failed banks in its region, but its Q1 results gave shareholders some reassurance.

To be clear, Western Alliance did take a hit from adverse conditions. Net revenue was down 1% to $552 million, and net income plunged more than 40% year over year. However, net-interest income soared 36%, helping Western Alliance to post adjusted earnings of $2.30 per share, which was up from $2.22 per share in the year-ago quarter. Deposits were down 9%, but credit-loss provisions of $19.4 million in Q1 of 2023 weren't alarmingly high.

Western Alliance noted that its deposit mix remained attractive. Nearly 35% of its deposits are in non-interest-bearing accounts, with checking, savings, and money market accounts that do pay interest making up just over half of its deposit base. CD deposits have been on the rise, giving Western Alliance a core of reliable deposits that aren't available for immediate withdrawal without penalty.

The drop in bond yields has helped some banks reduce their unrealized losses on their investment portfolios. If that continues, then it could help Western Alliance and its peers weather the macroeconomic storms more effectively.