U.S. Movers: Alphabet, AMD, Chipotle, Simon Property, Uber Technologies, Walt Disney

Scott Peters
05 Feb, 2025
New York City

Alphabet Inc. plunged 7.3% to $192.60 after the parent company of Google and YouTube reported weaker-than-expected revenue in its cloud computing division as it escalates investment in artificial intelligence.

Revenue increased 12% to $96.45 billion from $86.31 billion, net income climbed 28% to $26.54 billion from $20.69 billion, and earnings per diluted share rose 31% to $2.15 from $1.64 a year ago.

Dividend payments to stockholders of Class A, Class B, and Class C shares totaled $2.4 billion for the quarter.

The company is planning to spend $75 billion this year as it continues to build out its artificial intelligence offering.

On Tuesday, China said it would probe Google over violations of antimonopoly laws after Washington slapped 10% levies on Chinese goods.

Although Google services are not accessible in China, the company still operates in the country, primarily focused on sales and engineering for its advertising business. It also has employees working on services including Google Cloud and customer solutions.

Virtually all brands, apart from Apple and Huawei, pay licensing fees to Google to use the Android system on their devices.

Simon Property Group Inc. eased 0.03% to $173.30 after the real estate investment company beat fourth-quarter estimates for funds from operations.

Revenue increased to $1.58 billion from $1.53 billion, net income declined to $667.2 million from $747.5 million, and earnings per diluted share fell to $2.04 from $2.29 a year ago.

Funds from operations for the quarter rose to $1.389 billion from $1.382 billion, and FFO earnings per share dropped to $3.68 from $3.69 in the prior year.

Real estate funds from operations climbed to $1.26 billion from $1.21 billion, and real estate FFO per share increased to $3.35 from $3.23 a year earlier.

Looking ahead to the full year 2025, the company estimated net income between $6.95 and $7.20 per share, and real estate FFO and FFO in the range of $12.40 to $12.65 per share.

Chipotle Mexican Grill Inc. dropped 5.5% to $55.78 after the fast food chain's same-store sales in fiscal 2025 are likely to slow to a low- to mid-single-digit increase.

Revenue increased to $2.85 billion from $2.52 billion, net income jumped to $331.8 million from $282.1 million, and earnings per diluted share rose to 24 cents from 20 cents a year ago.

The company opened 119 restaurants during the quarter, compared to 121 restaurants a year earlier.

The company proposed to purchase up to $300 million worth of its shares.

Advanced Micro Devices Inc. dropped 8.6% to $109.32 after the graphics and chip designer reported declining earnings in the fourth quarter.

Revenue surged 24% to $7.66 billion from $6.17 billion, net income slumped 28% to $482 million from $667 million, and earnings per diluted share fell to 29 cents from 41 cents a year ago.

The data center revenue in the quarter was up 69% to $3.9 billion, gaming revenue dropped 59% to $563 million, and embedded segment revenue slumped 13% to $923 million year-over-year.

For the first quarter of 2025, AMD estimated revenue of approximately $7.1 billion, up 30% from a year ago, and a non-GAAP gross margin at 54%.

Uber Technologies Inc. slumped 7% to $64.80 after the ride-sharing app and delivery platform operator's revenues were ahead of market expectations, but the company offered a conservative estimate of gross bookings in the first quarter. 

Revenue increased to $11.96 billion from $9.94 billion, net income climbed to $6.9 billion from $1.7 billion, and earnings per diluted share rose to $3.21 from 66 cents a year ago.

For the first quarter of 2025, the company estimated growth in gross bookings of 17% to 21% on a constant currency basis and adjusted EBITDA of $1.79 billion to $1.89 billion, or 30% to 37% higher than $1.5 billion year-over-year.

Gross bookings in the fourth quarter were $44.2 billion, and the company guided bookings in the first quarter to range between $42 billion and $43.5 billion.

Uber plans to repurchase $1.5 billion worth of shares of its common stock as part of its previously announced $7.0 billion share repurchase authorization.

The Walt Disney Co. gained 1.1% to $114.54 after the media and entertainment company reported higher earnings for the first quarter of 2025 ending in December.

Revenue increased 5% to $24.7 billion from $23.5 billion, net income jumped to $2.64 billion from $2.15 billion, and earnings per diluted share rose 35% to $1.40 from $1.04 a year ago.

Looking ahead to the second quarter, the company estimated a modest decline in Disney+ subscribers compared to the first quarter.

For the full year 2025, Disney’s India business will contribute $73 million, compared to $254 million in the prior year, and the sports segment will add $9 million, compared to a loss of $636 million a year ago.