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Amazon Follows Alphabet Yesterday Missing on Top & Bottom Lines
Intel and Starbucks Both Selloff After Afternoon Earnings Reports
This trading day began with major indexes in the red, and they stayed there. Alphabet’s (GOOGL - Free Report) miss yesterday afternoon on both top and bottom lines got investors off on the wrong foot this morning. The Dow slid -284 points today, the Nasdaq was down -365 and the S&P 500 lost -45 points. Conversely, the small-cap Russell 2000 had a good day: +28 points, as investors rotated out of Big Tech into smaller names.
Earnings Reports After the Close: AMZN, INTC, SBUX
Reminiscent of Alphabet’s performance Wednesday, Amazon (AMZN - Free Report) today became the latest Mag 7 hyperscaler to disappoint investors on both earnings and revenues. The former came in at $1.89 per share, well off the $2.01 in the Zacks consensus and the $1.95 per share reported in the year-ago quarter. Revenues of $201.9 billion were just light of the expected $202.1 billion. Guidance was inline with earlier estimates.
Once again, AI spending is a concern. Otherwise, Amazon put up some pretty decent numbers: +13.9% on Operating Margin was the company’s highest ever. AWS cloud business grew another +39%. But shares selling off nearly -6% brings the stock to breakeven year to date and from this time last year.
Intel Corp. (INTC - Free Report) zoomed past expectations on its Q3 earnings after the close, with $0.52 per share nicely ahead of the $0.39 analysts had forecast. Revenues of $16.5 billion narrowly improved over the $16.44 billion in the Zacks consensus. Shares are giving up -16.6% on the news, but the stock is still up well over +100% year to date.
Starbucks’ (SBUX - Free Report) turnaround continues, with 250 stores closed in the quarter, which brought revenues down even lower than expected for the quarter: $9.14 billion from the $9.27 billion consensus (and the $9.57 billion reported in the year-ago quarter). Earnings outpaced estimates to $0.80 per share, up +54% from a year ago. The company’s joint venture retail operations with China has not yet captivated investors; shares are down -2.6% in the after market. Questions or comments about this article and/or author? Click here>>
Image: Bigstock
Amazon the Latest Mag 7 to Miss Q3 Estimates
Key Takeaways
This trading day began with major indexes in the red, and they stayed there. Alphabet’s (GOOGL - Free Report) miss yesterday afternoon on both top and bottom lines got investors off on the wrong foot this morning. The Dow slid -284 points today, the Nasdaq was down -365 and the S&P 500 lost -45 points. Conversely, the small-cap Russell 2000 had a good day: +28 points, as investors rotated out of Big Tech into smaller names.
Earnings Reports After the Close: AMZN, INTC, SBUX
Reminiscent of Alphabet’s performance Wednesday, Amazon (AMZN - Free Report) today became the latest Mag 7 hyperscaler to disappoint investors on both earnings and revenues. The former came in at $1.89 per share, well off the $2.01 in the Zacks consensus and the $1.95 per share reported in the year-ago quarter. Revenues of $201.9 billion were just light of the expected $202.1 billion. Guidance was inline with earlier estimates.
Once again, AI spending is a concern. Otherwise, Amazon put up some pretty decent numbers: +13.9% on Operating Margin was the company’s highest ever. AWS cloud business grew another +39%. But shares selling off nearly -6% brings the stock to breakeven year to date and from this time last year.
Intel Corp. (INTC - Free Report) zoomed past expectations on its Q3 earnings after the close, with $0.52 per share nicely ahead of the $0.39 analysts had forecast. Revenues of $16.5 billion narrowly improved over the $16.44 billion in the Zacks consensus. Shares are giving up -16.6% on the news, but the stock is still up well over +100% year to date.
Starbucks’ (SBUX - Free Report) turnaround continues, with 250 stores closed in the quarter, which brought revenues down even lower than expected for the quarter: $9.14 billion from the $9.27 billion consensus (and the $9.57 billion reported in the year-ago quarter). Earnings outpaced estimates to $0.80 per share, up +54% from a year ago. The company’s joint venture retail operations with China has not yet captivated investors; shares are down -2.6% in the after market.
Questions or comments about this article and/or author? Click here>>