AMD's shares dip as its revenue forecast of $9.6 billion fails to impress, sparking concerns over its AI prospects. Meanwhile, Pinterest faces a revenue outlook shortfall and sluggish user growth, raising questions about its ad-revenue model. In contrast, McDonald's shines with stronger-than-expected U.S. sales, benefiting from savvy promotions that keep it ahead of fast-casual competitors. A vivid contrast of fortune in the stock market unfolds as the hosts dive into these pivotal shifts.
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insights INSIGHT
High Expectations Hurt AMD
AMD's revenue forecast disappointed investors despite huge expectations after big AI deals.
The stock doubled this year, so any slower-than-expected payoff triggered heavy profit-taking.
insights INSIGHT
AI Market Forecast Fuels Pressure
CEO projected the AI processor market could exceed $500 billion annually, raising expectations.
Market optimism amplified pressure on AMD to rapidly close the gap with Nvidia.
insights INSIGHT
Pinterest Growth Hit By Tariffs
Pinterest warned fourth-quarter revenue would miss some analyst expectations.
Tariffs and weaker ad growth in furniture categories may dent holiday-quarter monetization.
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On this episode of Stock Movers: - AMD (AMD) shares fall in premarket trading after the chipmaker failed to impress investors with its revenue forecast after an eye-popping rally sent expectations soaring. Fourth-quarter revenue will be roughly $9.6 billion, the company said in a statement Tuesday. Though analysts had estimated $9.2 billion on average, some projections ranged as high as $9.9 billion. Investors have bet heavily on AMD following blockbuster agreements with OpenAI and Oracle, which plan to use the company’s chips in their build-out of artificial intelligence computing. The hope is that AMD can finally crack Nvidia’s dominance in the AI processor market. - Shares of Pinterest (PINS) are down in premarket trading, after the search platform gave a weaker-than-expected revenue outlook. The San Francisco-based company expects revenue to be $1.31 billion to $1.34 billion for the fourth quarter, according to a statement published Tuesday. The midpoint of that range is below the average analyst estimate of $1.34 billion, according to data compiled by Bloomberg. Pinterest, which people use to find ideas for recipes, fashion and home decor, posted third-quarter sales of $1.05 billion, which was in-line with expectations. User growth in the US and Canada, the company’s most lucrative market, was up just 1 million users over the prior quarter. - Shares of McDonald’s Corp. (MCD) edged higher ahead of the US open, after the fast food giant reported faster-than-expected US sales growth last quarter as diners prioritized cheap fast food and pulled back from more premium meals at fast-casual chains. US comparable-store sales, which reflect the results of established locations, increased 2.4% in the third quarter, with the company attributing the rise mostly to higher per-visit spending. Overall comparable sales, which adds in international markets, were in line with expectations, while adjusted earnings per share fell short of the average of estimates compiled by Bloomberg.
Stock Movers