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Tag: Earnings Report

  • Xbox console revenue fell 30 percent year-over-year this summer

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    It hasn’t been a good year for Xbox so far. Microsoft has released its earnings report for the quarter ending on September 30, and it has revealed that its revenue from the Xbox hardware fell by 30 percent year-over-year. Take note that the revenue decline doesn’t reflect any dip in sales caused by the console’s $20-to-$70 price hike, since that took effect on October 3. Similarly, Microsoft only raised the price for its Game Pass Ultimate subscription from $20 to $30 in October.

    Meanwhile, revenue from Xbox content and services remained relatively unchanged from the same period last year. Microsoft says it saw growth from Xbox subscriptions and third-party content, but it was “partially offset” by the decline in first-party gaming content.

    The Xbox division was one of the most affected teams when Microsoft started cutting down its global workforce earlier this year, with the company cancelling games that were being developed for the console. Microsoft scrapped the modern reimagining of Perfect Dark, a first-person shooter from the year 2000, and even closed down the Xbox studio working on it. The company also cancelled Everwild, a project that had long been in development by Xbox studio Rare, also in the midst of its mass layoffs.

    Overall, Microsoft’s $77.7 billion revenue was 17 percent higher compared to the same period last year, and its operating income was up by 22 percent. Microsoft CEO Satya Nadella posted a few highlights about the company’s earnings call on X, mostly focusing on its AI efforts. He said that the company will increase its AI capacity by 80 percent this year and will double its data center footprint over the next two.

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  • Nvidia earnings will put an entire stock market meme to the test. Again.

    Nvidia earnings will put an entire stock market meme to the test. Again.

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    Nvidia (NVDA) is at the center of a new meme stock rally.

    Its earnings report on Wednesday will put that theme to the test. Again.

    Wedbush analyst Dan Ives, the most creative voice on Wall Street today, marrying a dramatic flair with a prescient, unabashed bullishness on AI’s investment case, called Nvidia’s quarterly results from last May a “jaw dropping” event.

    “The Street was all awaiting last night’s Nvidia quarter and guidance to gauge the magnitude of this AI demand story with many skeptics saying an AI bubble was forming and instead Jensen & Co. delivered guidance for the ages,” Ives wrote at the time

    And Ives was only just getting started.

    In August, Nvidia’s increased revenue forecast was a “drop the mic” moment for the company, in Ives’ view.

    By November, Nvidia CEO Jensen Huang had been crowned by Ives as the “Godfather of AI” after the company once again raised its sales forecast. Ives added the company’s November outlook was “guidance heard around the world as the AI Revolution is accelerating into 2024 for the broader tech sector.”

    Three months later, and what do we have in the market? Anything and everything with an AI play catching a bid while Nvidia has become the third-largest company in the market.

    On Wednesday, for instance, the chip giant disclosed modest stock investments in Arm Holdings (ARM), SoundHound AI (SOUN), and biotech company Recursion Pharmaceuticals (RXRX).

    Shares of all three rallied on Thursday following the news, most notably SoundHound, which gained 60% on news Nvidia owned about 1.5% of the company’s outstanding shares as of Dec. 31.

    Add to this the recent action seen in Arm stock, and the rally in cloud storage play Super Micro Computer (SMCI) — which saw its stock gain about 200% in a month and nearly 1000% over the last 12 months, before pulling back on Friday — and we can see that a bona fide AI craze has broken out in the stock market. One in which the mere suggestion that a company could be set to benefit from accelerating AI-related spending is enough to bid shares higher.

    Now, the notion that an AI-fueled market rally is hanging by a thread only Nvidia can sew on tightly is far from a novel idea, as Ives noted in his May 2023 report. And so perhaps it is our error to see this week’s results from Nvidia as holding much significance beyond the fortunes of Nvidia itself.

    Moreover, the corporate earnings outlook that can backstop a rally growing beyond AI continues to improve. Meanwhile, the number of times corporate executives have brought up AI on earnings calls of late has actually been on the decline.

    And unlike the meme stock rally of 2021 — in which fundamental stories were haphazardly retrofitted to explain why a stock might double or triple in a few trading days — the enthusiasm for AI plays is based on a firmer foundation of actual corporate spending.

    But with the locus of that investment found on Nvidia’s income statement, it’s hard to shake the feeling that these results will mean something bigger for the stock market rally. Even if we’ve seen this film before.

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  • Oracle Stock Falls After Earnings Report Disappoints

    Oracle Stock Falls After Earnings Report Disappoints

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    Oracle shares were heading sharply lower in late trading Monday after the enterprise software giant posted November quarter financial results that fell short of both the company’s own guidance and consensus Street estimates.

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  • Snowflake Shares Gain on Strong Earnings

    Snowflake Shares Gain on Strong Earnings

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    Snowflake shares were gaining ground Wednesday after the cloud data warehouse software company posted better-than-expected results for the quarter ended Oct. 31.

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  • PDD Stock Soars on Earnings as Alibaba and Amazon Rival Sees Staggering Growth

    PDD Stock Soars on Earnings as Alibaba and Amazon Rival Sees Staggering Growth

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    Shares in PDD Holdings soared Tuesday after the online retailer reported quarterly results that were far ahead of Wall Street’s expectations. The rival to both Alibaba and Amazon revealed staggering growth.

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  • Lowe’s Sales Disappoint as Consumers Pull Back. The Stock Is Dropping.

    Lowe’s Sales Disappoint as Consumers Pull Back. The Stock Is Dropping.

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    Lowe’s earned more than expected in the third quarter but the stock was tumbling after the home-improvement retailer reported disappointing sales and noted that consumers were reining in spending.

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  • Walmart Beats on Earnings and Raises Guidance. Why the Stock Is Falling.

    Walmart Beats on Earnings and Raises Guidance. Why the Stock Is Falling.

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    Walmart topped third-quarter estimates and raised fiscal-year guidance. But investors were expecting more from the world’s largest retailer, sending the stock lower in premarket trading.

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  • Canadian Solar Stock Sinks on Earnings Miss and Weak Outlook

    Canadian Solar Stock Sinks on Earnings Miss and Weak Outlook

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    Shares of Canadian Solar were falling sharply after the company fell short on quarterly earnings and sales.

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  • Datadog Stock Skyrockets 30% on Upbeat Outlook and Customer Growth

    Datadog Stock Skyrockets 30% on Upbeat Outlook and Customer Growth

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    Datadog External link stock surged Tuesday after the security software provider generated more profit than expected in the quarter and raised its sales outlook for the full year.

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  • Rivian Q3 earnings preview: EV demand, profitability path key items to watch

    Rivian Q3 earnings preview: EV demand, profitability path key items to watch

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    Electric adventure-vehicle maker Rivian (RIVN) is scheduled to report third quarter earnings after the bell on Tuesday, after rivals in the sector have reported demand issues and pull back on spending.

    For the quarter, Wall Street is expecting Rivian to report revenue of $1.31 billion, with an adjusted EPS loss of $1.32, per Bloomberg estimates. That revenue figure would represent a 17% jump from Q2’s $1.12 billion and nearly 150% more than the $536 million reported a year ago. On an adjusted EBITDA basis, Rivian is expected to report a loss of $1.04 billion, narrower than last year’s $1.307 billion loss.

    Last month, Rivian reported deliveries of 15,564 EV trucks, more than the 14,973 estimated per Bloomberg. Production Q3 also topped estimates at 16,304 vehicles. Rivian also said it is on track to hit its 52,000 unit production forecast for 2023.

    In its Q2 report, Rivian narrowed its full-year adjusted EBITDA loss to $4.2 billion, compared with the $4.3 billion it saw previously. The $4.2 billion EBITDA loss projection Rivian sees for 2023 is $1 billion less than the EBITDA loss it reported in 2022.

    Investors were hit with a piece of bad news in Q3, when Rivian revealed a $1.5 billion convertible debt offering in early October. Wedbush analyst Dan Ives called it a “gut punch” to investors at the time.

    Rivian shares are down nearly 10% since then and 46% year-to-date, while the S&P 500 is up over 14% for the year. Shares of EV makers and legacy automakers like GM and Ford have also been hit hard, with the companies reporting waning or “evolving” EV demand.

    Last month Ford (F) paused $12 billion worth of investments in its EV projects until “capacity” is needed. Ford said in its earnings report that US EV buyers were “unwilling to pay premiums for [EVs] over gas or hybrid vehicles, sharply compressing EV prices and profitability.” Fellow Big Three automaker GM (GM) pushed back its EV truck expansion in late October, noteing “evolving EV demand” as the main reason why it is slowing its EV truck volumes.

    CEO RJ Scaringe stands outside the startup Rivian Automotive's electric vehicle factory in Normal, Illinois, U.S. April 11, 2022. Picture taken April 11, 2022. REUTERS/Kamil Krzaczynski

    CEO RJ Scaringe stands outside the startup Rivian Automotive’s electric vehicle factory in Normal, Illinois, U.S. April 11, 2022. Picture taken April 11, 2022. REUTERS/Kamil Krzaczynski (Kamil Krzaczynski / reuters)

    Even Tesla (TSLA) isn’t immune to the EV demand story, with the automaker delaying construction of its upcoming Gigafactory in Mexico due to concerns about global economic conditions stemming from rising interest rates.

    That being said, Rivian and its lifestyle-oriented trucks might be an outlier in the EV landscape.

    Rivian’s aforementioned Q3 deliveries were up 23% sequentially compared to Q2, even as company raised prices after selling out its initial cheaper orders. Unlike Ford and GM, Rivian is targeting coastal and higher-income buyers who are more immune to rising prices and higher interest rates compared to the broader population.

    Though Rivian is far from profitable, it has been cutting costs and predicts gross profits by 2024. Investors will be looking to hear more from the company and CEO RJ Scaringe about its profitability path going forward.

    Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

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  • Amazon Stock Jumps on Earnings Beat. Cloud Results Were Good Enough.

    Amazon Stock Jumps on Earnings Beat. Cloud Results Were Good Enough.

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    Amazon shares rose in late trading Thursday after the company posted better-than-expected financial results for the September quarter.

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  • Microsoft Tops Estimates, Powered by Cloud Business

    Microsoft Tops Estimates, Powered by Cloud Business

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    Microsoft shares were trading higher after the company posted better-than-expected financial results for its September quarter, aided by better performance than expected from the company’s cloud computing business.

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  • Tesla’s Misses on Earnings. CEO Musk Frets About Growth and the Economy.

    Tesla’s Misses on Earnings. CEO Musk Frets About Growth and the Economy.

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    Electric-vehicle giant reported third-quarter results External link on Wednesday evening that missed Wall Street estimates, underscoring that the pain of price cuts isn’t over. Tesla’s travails show that it will be tough going for traditional auto makers trying to build competing EV businesses.

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  • Foot Locker Slashes Its Outlook and Suspends Dividend. The Stock Sinks.

    Foot Locker Slashes Its Outlook and Suspends Dividend. The Stock Sinks.

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    Foot Locker


    stock plunged on Wednesday as investors kicked around a bevy of bad news. The shoe and sportswear retailer missed expectations for second-quarter sales, slashed its full-year outlook again, and paused its dividend.

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  • Deere Raises Guidance as Earnings Smash Estimates

    Deere Raises Guidance as Earnings Smash Estimates

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    Deere


    crushed Wall Street’s earnings estimates and increased fiscal-year financial guidance. The stock, however, was down. Current results were great, but investors are worried about whether the current phase of rising demand for agricultural equipment is over.

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  • JD.com Earnings Beat. Stock Can’t Escape China Gloom.

    JD.com Earnings Beat. Stock Can’t Escape China Gloom.

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    JD.com Posts Earnings Beat. But the Stock Can’t Shake the China Gloom.

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  • Alibaba Smashes Estimates. Here’s The Bad News.

    Alibaba Smashes Estimates. Here’s The Bad News.

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    Alibaba Stock Jumps as Earnings Smash Estimates. But There’s a Case for Caution.

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  • Roblox Misses on Earnings. The Videogame Stock Sinks.

    Roblox Misses on Earnings. The Videogame Stock Sinks.

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    Roblox Stock Falls Sharply. Blame the Wider Loss.

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  • Tesla Is Now Less Profitable Than This Chinese EV Maker

    Tesla Is Now Less Profitable Than This Chinese EV Maker

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    This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.

    https://www.barrons.com/articles/li-auto-earnings-stock-price-7ca16378

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    Second-quarter results from Chinese electric-vehicle maker


    Li Auto


    topped Wall Street Expectations. What’s more, profit margins topped EV leader


    Tesla

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  • Fisker Delivered Just 11 EVs. Why the Stock Is Falling.

    Fisker Delivered Just 11 EVs. Why the Stock Is Falling.

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    Fisker Delivered Just 11 EVs. Why the Stock Is Falling.

    Fisker earnings, reported Friday morning, topped analyst expectations, but that was the extent of the good news.

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