Fast Money Blog- 2/4/22
On Tuesday, February 1st, Advanced Micro Devices, Inc. (AMD), Starbucks, Inc. (SBUX) and PayPal Holdings Company (PYPL) released their earnings reports.
AMD reported Q4 2021 top line revenue of $4.8 billion, an increase of 49% year-over-year. On a quarter-over-quarter basis, the top line increased 12%.
The Computing and Graphics segment revenue was $2.6 billion, up 32% year-over-year and up 8% quarter-over-quarter.
Revenue for the Enterprise, Embedded and Semi-Custom segment, was $2.2 billion, up 75% year-over-year and 17% quarter-over-quarter.
Here’s what’s interesting: For the Full Year 2021, AMD reported top-line revenue of $16.4 billion, up 68% year over year.
How has AMD achieved such remarkable earnings results?
By becoming the preferred choice in in the high performance computing (HPC) industry. AMD now powers 73 supercomputers, compared to 21 in the November 2020 list, a more than 3x year-over-year increase.
By expanding their Cloud providing services to more than 130 new clients in the past quarter, including those with Amazon Web Services, Inc., Google Cloud, IBM Cloud; and Microsoft Azure.
PayPal Holdings Company (PYPL) released their Q4 2021 earnings. The company reported total revenue of $6.9 billion, a growth of 13% year-over-year. Total Payment Volume for the quarter came in at $339.5 billion, growing 23% year-over-year. In addition, its peer-to-peer payment service Venmo processed a total of $61 billion in payments during the fourth quarter, up 29% from a year earlier.
For the fiscal year 2021, revenue was $25.4 billion, a growth of 18% year-over-year, and Total Payment Volume was $1.25 trillion, growing 33% year-over-year.
While these revenue results are spectacular, it’s the slow-down of PayPal’s user growth that has Wall Street worrying, hence the decline in the stock price.
Starbucks released Q1 2022 earnings with top-line revenue of $8.1 billion, up 22% year-over-year.
The company’s North American segment grew 23% year over year to $5.7 billion, due to a 18% quarterly increase in company-operated comparable store sales.
Revenue for their international segment grew 12% year-over-year to $1.9 billion.
However, China’s same-store sales fell 14% in the quarter as the country reimposed travel restrictions on some areas due to the Covid pandemic. This and the fact that staffing and supply chain issues from the pandemic has hurt profits, is why the stock has slipped this week.
As you may know, on Thursday, February 3rd, Pinterest, Inc. (PINS) released its Q4 2021 earnings. The company reported top-line revenue of $847 million, up 20% year-over-year.
Pinterest’s average revenue per user was up 23% compared with a year ago.
For the fiscal year 2021, Pinterest reported total revenue of $2.5 billion, an increase of 52% year-over-over.
However, Global Monthly Active Users (MAUs) decreased 6% year over year to 431 million.
Here’s what is important for you to know: Wall Street is slowly selling off stocks whose companies are showing modest declines in their platform’s user growth. This includes companies like Meta, Inc. (FB), Netflix, Inc. (NFLX) and Snapchat, Inc. (SNAP).
The big winner this week in terms of earning was AMD, whose technology is helping to power every major cloud platform in the world. Moving forward, AMD is a great date.
Tyrone Jackson
The Wealthy Investor