This trading day began with major indexes in the red, and they stayed there. Alphabet’s GOOGL 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 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 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 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.
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