Apple’s Earnings Beat Sends Shares Higher, While Intel Plunges on Layoffs and Dividend Cut
Apple’s strong quarterly performance sent its shares higher in extended trading, with the company exceeding analysts’ expectations for both revenue and earnings. However, the tech sector saw a mixed bag of results, with Intel plummeting over 17% after announcing layoffs and a dividend suspension. Other notable performers included DoorDash, which surged on a revenue beat, and Roku, whose stock soared after posting a narrower-than-expected quarterly loss.
Key Takeaways:
- Apple: Apple exceeded analysts’ revenue and earnings estimates for the fiscal third quarter, boosting its share price in after-hours trading.
- Intel: Intel shares tanked over 17% in extended trading after the company announced plans to lay off 15% of its workforce and suspend its dividend.
- Amazon: Despite a strong performance in its cloud division, Amazon’s shares fell 5% after the company reported weaker-than-expected revenue for the second quarter.
- DoorDash: DoorDash shares climbed nearly 14% after the online food ordering company reported a revenue beat in the second quarter and raised its gross order value forecast.
- Roku: Roku shares jumped over 5% after the streaming device company posted a narrower-than-expected quarterly loss and beat revenue expectations.
Apple Outperforms Expectations, Sends Shares Up
Apple shares gained in extended trading after the company reported its fiscal third-quarter earnings. Revenue reached $85.78 billion, exceeding analysts’ expectations of $85.03 billion. The company also posted earnings of $1.40 per share, surpassing the consensus estimate of $1.35. This strong performance was driven by robust sales of iPhones and other key products. The company’s services business, which includes Apple Music, Apple Pay, and iCloud, also continued to grow.
"Our results demonstrate the power of our innovative product line and the strength of our services business," said Tim Cook, Apple’s CEO. "We’re incredibly excited about the future, with a pipeline of exciting new products and services that we can’t wait to share with our customers." This optimistic outlook further encouraged investors, contributing to the positive market reaction.
Intel Plunges on Layoffs, Dividend Cut, and Disappointing Results
Intel’s stock suffered a significant blow in extended trading, plummeting over 17% after the chipmaker announced a series of challenging decisions. Intel reported a disappointing second-quarter earnings report, falling short of analysts’ expectations. The company also unveiled plans to lay off 15% of its workforce, impacting roughly 12,000 employees. In a further blow to investors, Intel announced it would suspend its dividend to focus on investing in its core businesses.
"We are taking decisive actions to address the near-term challenges in our business while strengthening our long-term growth opportunities," said Pat Gelsinger, Intel’s CEO. "We believe these changes are necessary to position Intel for success in the years ahead." However, the market reaction suggests that investors remain unconvinced about the future of Intel, particularly given the challenging economic climate.
Amazon Struggles with Revenue Growth, Despite Strong Cloud Performance
Amazon’s shares dropped 5% in extended trading after the company reported its second-quarter earnings. While its cloud computing division, Amazon Web Services (AWS), continued to grow, exceeding analysts’ expectations, overall revenue fell short of estimates. The company attributed the slower revenue growth to factors like the challenging macroeconomic environment and increased competition in the e-commerce space.
"We are focused on being more cost-conscious," said Andy Jassy, Amazon’s CEO. "We are also making investments in areas like artificial intelligence and automation to drive efficiency and improve our customer experience." While the company’s cloud division continues to be a significant driver of growth, Amazon’s overall performance reflects the ongoing challenges of the broader economy.
DoorDash Delivers Strong Results, Fuels Stock Surge
DoorDash shares surged nearly 14% in extended trading after the online food ordering company reported a revenue beat for the second quarter. The company’s revenue reached $2.63 billion, exceeding analysts’ expectations of $2.54 billion. This strong performance was driven by increased customer demand and favorable trends in the food delivery market.
"We are excited about the continued growth of our platform and the increasing adoption of our services by both consumers and merchants," said Tony Xu, DoorDash’s CEO. "We are committed to investing in innovation and expanding our offerings to meet the evolving needs of our customers." DoorDash’s positive performance signals a continued strong demand for food delivery services, despite the broader economic challenges.
Roku Surprises With Positive Earnings, Shares Jump
Roku shares soared over 5% in extended trading after the streaming device company posted better-than-expected second-quarter results. Despite a narrower-than-expected quarterly loss of 24 cents per share, the company exceeded analysts’ expectations for revenue, reaching $968 million. This positive performance is likely a reflection of the continued growth of the streaming market and Roku’s strong position within that space.
"We are encouraged by the ongoing adoption of streaming on our platform and the growing engagement of our active users," said Anthony Wood, Roku’s CEO. "We remain focused on providing consumers with the best possible entertainment experience and on driving innovation in the streaming ecosystem." The positive earnings release and the company’s optimistic outlook for the future have fueled confidence in Roku’s stock.
Conclusion
The extended trading session showcased a mixed bag of results across various sectors. While Apple’s earnings beat provided a bright spot, Intel’s significant challenges and downward revision in guidance cast a shadow over the tech sector. Amazon’s strong cloud performance was tempered by overall revenue weakness, while DoorDash and Roku delivered positive results that boosted investor confidence. These mixed results highlight the ongoing volatility and challenges in the market, as companies navigate economic headwinds and technological disruptions.
