Our recent bifurcation among major market indices was apparent once again today, with the Dow +198 points on the day, +0.62%, and the tech-heavy Nasdaq -178 points, -1.63%. The S&P 500, which includes blue-chip stocks and plenty of tech, split the difference, -0.59%. The small-cap Russell 2000 once again looked to be out of the earnings-disappointment fray, +0.11% on the day.
Apple ( has released its fiscal Q4 earnings results after Thursday’s close, outperforming estimates on both sales and earnings. Its $1.29 per share was 3 cents better than expected on $90.15 billion in revenues, which surpassed the $88.47 billion consensus estimate. Yet shares are trading down on the news, possibly due to disappointing iPhone 14 Pro sales relative to expectations.
While iPhone sales overall were up +10% year over year, the $42.63 billion reported was light of the estimated $43.2 billion. Supply and demand issues — which appear to be alleviated to a certain extent across the industry — are apparently still prevalent at Apple. Not only that, but Services came in below expectations as well: $19.19 billion came up short of the estimated $20.1 billion, likely due to a -2% drop in the App Store. All that said, however, gross margins at Apple slightly outpaced expectations to 42.3%.
Amazon ( is getting crushed in today’s after-market following its Q3 results this afternoon. While earnings of 28 cents per share beat the Zacks consensus by 5 cents — partially due to its $1.1 billion gain from its investment in Rivian (RIVN – Free Report) — while coming up light on top-line revenues of $127.1 billion, versus $127.9 billion expected. AWS cloud services came in light of +30% for the first time in at least 6 quarters, to +28%.
But what really appears to be hammering at Amazon shares — now -18% in late trading as I type this — is the holiday quarter guidance coming in well below expectations: a range of $140-148 billion is expected for Q4, not even close to the $157 billion in the Zacks consensus. We expect the Zacks Rank for this current #3 (Hold)-rated stock to hit the skids in the coming days.
Intel ( was mixed in its Q3 earnings report after the bell today, posting earnings of 59 cents per share easily surpassing the 34 cents expected while revenues of $15.34 billion in the quarter clearly missed the $15.49 billion analysts were looking for. Intel also lowered both next-quarter and full-year sales guidance — to a range of $14-15 billion and $63-64 billion, respectively, from a Zacks consensus of $16.5 billion and $65.7 billion, respectively. Shares are up 7% in late trading, however, perhaps on the notice that Intel will be cutting costs by $3 billion in 2023.
Pinterest ( put up surprisingly good numbers this afternoon on both top and bottom lines: earnings of 11 cents per share more than doubled the 5 cents anticipated, on sales of $684.6 million which outpaced the Zacks consensus $665 million. Monthly and Daily Active Users (MAU, DAU) both came in higher than expected, as did Average Revenue per User (ARPU). Shares are trading up +12% in the after market, but still down more than -25% year to date.
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