U.S. Movers: AMD, Caesars Entertainment, Match Group, Paycom Software, Wayfair, WeWork

Scott Peters
01 Nov, 2023
New York City

Benchmark indexes advanced after investors stepped up to add more exposure to stocks after the Federal Reserve left its key short-term rate range unchanged for the second consecutive time. 

The S&P 500 index increased 0.7% to 4,224.71, and the Nasdaq Composite advanced 0.9% to 12,964.44.

The yield on 2-year Treasury notes decreased to 5.0%, 10-year Treasury notes inched lower to 4.78%, and 30-year Treasury bonds edged down to 4.95%.

Wayfair Inc. declined 4.5% to $40.46 after the online furniture retailer reported weak third-quarter revenue, reflecting a weak demand for home goods and residential furniture.

Advanced Micro Devices, Inc. jumped 4.4% to $102.64 after the advanced chip maker reported mixed quarterly results and offered a positive 2024 outlook for its data center segment.

Revenue in the third quarter increased 4% to $5.8 billion from $5.56 billion, net income soared more than threefold to $299 million from $66 million, and diluted earnings per share jumped to 18 cents from 4 cents a year ago.

Revenue in the data center segment from a year ago was flat at $1.6 billion; the client segment jumped 42% to $1.5 billion, driven by Ryzen mobile processor sales; the gaming segment revenue declined 8% to $1.5 billion; and embedded segment revenue fell 5% to $1.2 billion.

For the fourth quarter of 2023, AMD expects revenue to be approximately $6.1 billion, with a band of $300 million at the midpoint of the revenue range. This represents annual growth of approximately 9% and sequential growth of approximately 5%.

The chip maker expects a non-GAAP gross margin of approximately 51.5%.

WeWork Inc. plunged 52% to $1.08 after a report in the Wall Street Journal noted that the company is looking to file Chapter 11 bankruptcy protection as early as next week.

Caesars Entertainment Inc. decreased 0.7% to $39.63 after the resorts and casinos operator reported rising revenue and earnings in the third quarter, helped by steady demand at its properties in Las Vegas.

Revenue rose 3.7% to $2.99 billion, and earnings increased to 34 cents from 24 cents a year ago.

Match Group Inc. plunged 16.8% after the dating services provider forecast fourth-quarter revenue that fell short of market expectations.

In the third quarter, revenue rose 8.9% from a year before to $881.6 million, and earnings per share eased to 57 cents from 58 cents a year ago.

Active paying subscribers declined 5% from the previous quarter to 15.7 million, and average subscriptions increased 15% from the previous quarter to $18.39.

During the quarter, the company repurchased $300 million of stock and a total of $445 million in the year-to-date, reducing its share count by 2.8% from the beginning of the year.

About $667 million is available under the $1 billion stock repurchase program, and the company declared its plan to return to shareholders at least 50% of its free cash flow.

Paycom Software Inc. plunged 37.7% to $152.38 after the payroll processor forecasted weak fourth-quarter revenue.

In the third quarter, non-GAAP net income increased to $102.4 million, or $1.77 per diluted share, up 39% from the prior-year period.

During the quarter, the company repurchased over $76 million worth of stock and paid nearly $22 million in cash dividends.