Zacks Analyst Blog Highlights: Alphabet, General Motors, Advanced Micro Devices, PayPal and Starbucks

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For immediate release

Chicago, IL – February 2, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Alphabet GOOGL, General Motors GM, Advanced Micro Devices AMD, PayPal PYPL and Starbucks SBUX.

Here are the highlights from Tuesday’s analyst blog:

Big wins for GOOGL, AMD, GM; Failures for PYPL and SBUX cause massive sell-off

Stock indices closed higher on Tuesday for the third consecutive trading day: the Dow was +273 points, +0.78%; the S&P 500 +31, +0.69%; the Nasdaq rose by +106 points, +0.75%; and the small cap Russell 2000 was +22 points at +1.10%. The trading day was very volatile, but rallied during the last hour of regular trading until the close.

We saw slightly better than expected PMI and ISM manufacturing data for January, while job openings widened to 10.9 million in December. Job abandonments remained high at 4.3 million. And construction spending fell 50 basis points from expectations to +0.2% in December, from an upward-revised +0.6% in December. A mixed bag in economic data yesterday, but nothing earth-shattering.

ParentGoogle Alphabet zoomed beat estimates in its fourth-quarter earnings report released after the closing bell, rising +6.7% in after-hours trading. Earnings of $30.69 per share beat expectations of a strong dollar, while revenue of $61.9 billion (less traffic acquisition costs [TAC]which the company does not include in its $75.3 billion in revenue) topped the Zacks consensus of $59.32 billion.

Alphabet also announced a large 20-for-1 stock split, which should provide a nice bonus for stockholders going forward (and bring its stock price down to more affordable levels of around $3,000). around $150). The big quarterly beat was in its Research category, which brought in $43.3 billion of the expected $41 billion. YouTube earned $8.6 billion while Cloud was $5.5 billion. This is the seventh consecutive quarterly result for the world leader in Internet research.

Zacks #1 Ranking (Strong Buy) – Rated General Engines also posted beats on the top and bottom results for its fourth quarter report on Tuesday afternoon: $1.35 per share beat expectations by 20 cents per share, while sales of $33.58 billion at in the quarter topped the Zacks consensus $29.22 billion. Electric vehicle (EV) bookings would also be very strong, led by Silverado, whose EV bookings topped 110,000. Shares are up +2.5% late in the session.

giant flea Advanced micro-systems beat expectations in the fourth quarter for earnings and sales: 92 cents per share on record revenue of $4.83 billion beat the 75 cents per share and $4.52 billion in sales forecast . Data center revenue doubled in the quarter for the 11th straight beat for the No. 2 (buy) ranked company by Zacks. Forecasts for the first quarter and full-year earnings were also raised from expectations.

PayPal shares, however, fell -16% following its penny-miss on net income to $1.11 per share in the fourth quarter, while sales were roughly in line at $6.9 billion, + 13% year over year. However, headwinds from its eBay spin-off continue and forecasts for the next quarter and full year are lower than expected as top brass look to keep expectations conservative. That seems to be what traders are focusing on, as the sharp decline is tipping PayPal into negative year-to-date gains.

Starbucks posted a mixed fiscal first quarter on Tuesday afternoon, with 72 cents per share missing the expected 80 cents but still better than the 61 cents per share a year ago. Revenue beat expectations at $8.1 billion, versus $7.99 billion in the Zacks consensus. Comps in China weighed on the quarter, falling -14% on strict Covid regulations in Starbucks’ second-largest market. The shares are down -4.7% at the end of the session.

Wednesday morning brings us private sector payrolls data for January from ADP. Only around 200,000 jobs are expected to have been created during the month, with the Omicron variant peaking across much of the country and seasonal adjustments to the holiday shopping season being the usual considerations for this time of year. We will also have a quarterly Treasury repayment announcement and a fourth quarter home ownership rate.

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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance figures displayed in this press release.

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Advanced Micro Devices, Inc. (AMD): Free Inventory Analysis Report

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