U.S. Movers: Alphabet, AMD, Microsoft, Starbucks

Scott Peters
31 Jan, 2024
New York City

AMD dropped 6% to $161.65 after the maker of advanced semiconductors offered a weak revenue growth outlook, disappointing some investors.

Revenue in the fourth quarter increased 10% to $6.2 billion from $5.6 billion, net income soared to $667 million from $21 million, and diluted earnings per share advanced to 41 cents from 1 cent a year ago.

For the full year 2023, the company reported revenue of $22.7 billion, net income of $854 million, and diluted earnings per share of $0.53.

For the first quarter of 2024, AMD expects revenue to be approximately $5.4 billion.

AMD expects data center segment revenue to be flat, with a seasonal decline in server sales offset by a strong data center GPU ramp.

Client, embedded, and gaming segment sales are expected to decline sequentially, with semi-custom revenue expected to decline by a significant double-digit percentage.

The company added, non-GAAP gross margin is expected to be approximately 52%.

Microsoft Corp. decreased 0.9% to $404.75 despite the software company reporting higher-than-expected quarterly earnings.

Revenue in the fiscal second quarter ending in December increased 18% to $62.02 billion, net income surged 33% to $21.9 billion from $17.4 billion, and diluted earnings per share advanced to $2.93 from $2.32 a year ago.

Revenue in the cloud segment soared 20% to $25.9 billion, personal productivity and business segment jumped 13% to $19.2 billion, and personal computing segment increased 19% to $16.9 billion.

The company returned to shareholders $8.4 billion in the form of share repurchases and dividends in the second quarter of fiscal year 2024.

Starbucks increased 3.5% to $97.45 after the company reported quarterly results.

Revenue in the fiscal first quarter ending in December rose 8.2% to $9.4 billion from $8.7 billion, net earnings rose 19.8% to $1.02 billion from $855 million, and diluted earnings per share advanced to 90 cents from 74 cents a year ago.

Global comparable store sales increased 5%, driven by a 3% increase in comparable transactions and a 2% increase in average ticket sales.

North America and U.S. comparable store sales increased 5%, driven by a 4% increase in average ticket sales and a 1% increase in comparable transactions.

The company lowered its full-year revenue outlook because of the competitive environment in its second largest market, China, and rising tensions between the U.S. and China.

Same-store sales in China increased by 10%; however, average ticket sales at stores fell by 9% as consumers avoided high-priced coffee shops.

Because of sales weakness in China, the company lowered its fiscal year sales growth to between 7% and 10%, down from the previous estimate of between 10% and 12%.

The company reiterated its full-year earnings per share growth of between 15% and 20%.

Alphabet decreased 5.5% to $144.67 after the parent company of search engine Google, reported weaker-than-expected advertising revenue in its latest quarter. 

Revenue in the fourth quarter increased 13% to $86.3 billion, net income soared to $20.6 billion from $13.6 billion, and diluted earnings per share advanced to $1.64 from $1.05 a year ago. 

Google search revenue increased to $48 billion from $42.6 billion, and YouTube ads jumped to $9.2 billion from  $7.9 billion a year ago.