Yahoo Finance Live’s Jared Blikre breaks down the winners and loser so far this earnings season.
RACHELLE AKUFFO: All right, well, earnings season is in full swing as investors digest the flood of quarterly reports. We have Yahoo Finance's Jared Blikre here to highlight some of the day's victories and losses along with some key earnings to watch this week. Hey, Jared.
JARED BLIKRE: That's right. Let's get to it. We've got some winners and some losers. This is our earnings heat map. Oh, let me get to this. This is our earnings heat map of what's happened today.
Now let's start with Spotify. This stock is up about 10%. Let me just show you on a one-year basis what it's done. Now we can go through some of the numbers.
This is the highest price that we've seen in Spotify since September, and that's after beating expectations on the key metric of premium subscriber gains, and you can count 10 million of those people in the fourth quarter. Now leading Bloomberg Intelligence to suggest that, quote, "guidance for 2 million additions in the first quarter may be conservative." So maybe some upside there.
Also gross margin catching the eye of Citigroup. They rate it with a buy with a price target of $140. They're saying that they should elevate the stock along with the monthly active users beat, and this is because the biggest concerns-- or this is in spite of some of the biggest concerns being that the macro environment and a slowing economy may weigh on the stock, but I think everybody's kind of saying that.
Now, here's a max chart, and you can see a lot of stocks like this look like that round trip over the pandemic. Now, It's kind of a long slog to get back to the top but a decent start there for Spotify.
Now we've got to get to ExxonMobil, and let me dial this down to a one-year chart. We're talking about records for the oil major. Now, they missed on revenue, but they posted a record profit of $59.1 billion for the year. Now, this is a bit shy of the $98.8 billion that's expected from Apple this Thursday.
But when it comes to cash flow, it's knocking on Apple's door there too, and let me just show you this chart that we have prepared here. This has to do with the cash flow, record cash flow raked in by US companies as part of the S&P 500. Here's Apple, the top spot in 2022. They raked in $122 billion. And then at the bottom we've got Exxon. They raked in $76.8 billion. So for the US oil majors, it's all about the return of cash flow.
And now we want to move on just a little bit here because we've got McDonald's. Now that stock is taking a little bit of a hit here. It's down about 2 and 1/2%, and let's see what we've got here. We can see it's in the upper end of its range here on a one-year basis. The key metric of global same-store sales, that was a nice beat for the comps. That was up 3% in the quarter.
Now, CEO Chris Kempczinski highlights the company's focus on technology, also its ability to deliver options through that delivery system. That's reaping dividends for the company. Now, the delivery sales more than doubled in the quarter.
And after the bell, guess what? Focus going to turn to AMD. So let me get up our chip sector here. Now, the chip sector is very highly levered to the business cycle, meaning that has the vicissitudes of the ups and downs. We can see AMD up 2 and 1/2% today. Chip stocks doing pretty well this year. You can see AMD is up 15%, and the company is potentially set to beat its chest about its prospects for growth this year.
And this is amid a general malaise among its competitors. So AMD is still making headway into the server space, and if Mark Zuckerberg's metaverse dream ever comes true, AMD is set to profit.
Now, traders are pricing in a 19% move after the bell, so stay tuned. You're not going to want to miss it. We're going to bring that to you live. Guys.
RACHELLE AKUFFO: All right, great stuff. Very long play on that metaverse, but, you know we're seeing a lot of movement in Meta--
JARED BLIKRE: It could happen.
RACHELLE AKUFFO: --so some people still bullish on it. It could. You know, anything could. Great stuff there. Jared Blikre for us.