Friday’s Headlines: Is Amazon Struggling to Grow?

Friday’s Headlines: Is Amazon Struggling to Grow?

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Facebook (FB) +17.6%

Pinterest (PINS) +13.6%

PayPal (PYPL) +11.5%

Upstart Holdings (UPST) +8.7%

Bumble (BMBL) +8.7%

Moving Down ⬇️

Teladoc (TDOC) -40.2%

Align Technology (ALGN) -15.5%

Lovesac (LOVE) -1.9%

Zendesk (ZEN) -1.9%

Baozun (BZUN) -1.8%

1. Amazon (AMZN) is trading down over 8% pre-market following its slowest growing quarter since the dot-com bust in 2001, with the Big Tech firm’s earnings call revealing a number of worrying misses. Amazon reported adjusted earnings per share (EPS) of $7.38 versus an expected $8.36, on revenue of $116.44 billion against an analyst forecast of $116.3 billion. These revenue figures represent growth of 7% during the first quarter — a long way off the 44% growth seen a year ago. According to CEO Andy Jassy, “the pandemic and subsequent war in Ukraine have brought unusual growth and challenges.” Operating margin also suffered this quarter, dropping to 3.2% from a figure of 8.2% in the year-ago quarter. “Inflationary and supply chain pressures” were cited as the driving causes. Read more here.

2. Apple (AAPL) reported its highly anticipated quarterly earnings yesterday after market close and delivered a solid beat all around. The company revealed EPS of $1.52 against a forecasted $1.43, on revenue of $97.28 billion versus an anticipated $93.89 billion. Despite highly publicized supply chain issues, Apple still managed to grow its iPhone revenue by 5.5% to $50.57 billion, showing that demand is clearly still there for its flagship device. Revenue from services also provided a massive bump, increasing by 17.28% year-over-year (YOY). The company also announced an increase to its dividend of 5%, along with the authorization of a $90 billion share buyback plan for the coming year. CEO Tim Cook remarked that these results are “a testament to Apple’s relentless focus on innovation and our ability to create the best products and services in the world.” Find out more here.

3. Elon Musk is once again back in the news (is he ever really out of it?) on the back of his recently board-approved offer to acquire Twitter (TWTR). This time, however, it relates to the company he actually does own — Tesla (TSLA). A filing with the Securities and Exchange Commission (SEC) has revealed that Musk sold approximately $4 billion worth of Tesla shares in order to fund his bid for Twitter. These sales occurred throughout Tuesday and Wednesday and are largely responsible for Tesla’s drop of 13.5% over the past five days. Musk took to his favorite social media platform in the early hours of this morning to assure shareholders that “No further TSLA sales planned after today.” However, with the SEC filing revealing these sales only covering up to April 27th, there are still a couple of days where Elon could have jettisoned even more shares that are yet undeclared. Click here to read more on the story.

Pádraig BolgerPádraig Bolger