5 Top Stories

Amazon Beats Estimates, Takes on TikTok

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Amazon Beats Estimates, Takes on TikTok

Growth in advertising and cloud computing helped Amazon [AMZN] beat estimates on Q1 earnings and revenue. Sales were up 13% from $127.4bn a year earlier. Nevertheless, during the post-earnings call on Tuesday, Chief Financial Officer Brian Olsavsky squashed any expectations Amazon would follow in the footsteps of Meta [META] and Alphabet [GOOGL] with dividend or stock buyback. Meanwhile, Amazon-owned livestreaming site Twitch is to take on TikTok with Discovery Feed, its own short-form video platform.

Pinterest Pops on Beat

Shares in the social media site [PINS] jumped 18% in extended trading Tuesday, after the firm’s Q1 results beat analyst consensus estimates and showed the fastest revenue growth since 2021. EPS was at $0.20, versus LSEG analysts’ expected $0.13; revenue was at $740m, versus $700m expected. Revenue was up 23% from $602.6m in the year-ago quarter, reported CNBC. Pinterest also posted 518 global monthly active users, up 12% year-over-year.

AMD Drops After Tepid Earnings

Advanced Micro Devices’ [AMD] share price dropped 7% after hours on Tuesday, after the chipmaker reported Q1 sales and earnings. While the results were somewhat ahead of analyst expectations, it would seem that they failed to wow investors. Of particular note was the fact that the firms’ Data Center segment grew 80% year-over-year to $2.3bn, driven by sales of its MI300 series AI chips.

SMCI Drops After Largely Positive Earnings

The Super Micro Computer [SMCI] share price went into a downward spiral Tuesday, after the server maker reported lower-than-expected revenue for its fiscal Q3; the stock dropped as much as 15% after hours. This was despite the fact that quarterly revenue tripled year-over-year, boosted by AI-related demand. The stock had climbed by 202% year-to-date as of Tuesday — versus the S&P’s growth of 6% — but continued to trend down the following day, after having opened 9.5% down from its previous close.

Heads Roll as Tesla Restructuring Continues

“Hopefully these actions are making it clear that we need to be absolutely hard core about headcount and cost reduction,” CEO Elon Musk wrote in a memo on Monday, according to the Financial Times, announcing that two senior executives and hundreds more staff had been fired from Tesla’s [TSLA] Supercharger group. Any manager “who retains more than three people who don’t obviously pass the excellent, necessary and trustworthy test” should resign, he added.

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