Other tech stocks including Amazon and Tesla are also in the red
The Nasdaq $NDAQ and other major stock market indexes dipped Wednesday after underwhelming earnings reports from Google $GOOGL parent Alphabet (GOOGL) and chipmaker Advanced Micro Devices (AMD $AMD). Other tech stocks such as Apple $AAPL (AAPL), Amazon $AMZN (AMZN), and Tesla $TSLA (TSLA) were also in the red.
In the afternoon, the tech-heavy Nasdaq was down about 0.05%, while the Dow Jones Industrial Average and S&P 500 added about 0.28% and 0.13%, respectively.
Shares of Alphabet (GOOGL) fell more than 7% as the tech giant missed Wall Street’s earnings expectations for the fourth quarter despite “robust momentum across the business.” The Google parent reported revenues of $96.5 billion for the fourth quarter — a 12% increase year-over-year. Alphabet reported earnings of $2.15 per share, up 31% from the previous year, and net income of $26.5 billion for the quarter ended in December.
The company was expected to report revenues of $96.7 billion for the fourth quarter of 2024, according to analysts’ estimates compiled by FactSet (FDS). Net income was expected at $26.2 billion, while analysts estimated earnings of $2.13 per share.
Shares in chipmaker Advanced Micro Devices (AMD) fell 7% after the company’s fourth-quarter data center revenue missed expectations.
Disney $DIS’s (DIS) streaming business once again turned a profit last quarter. But its flagship platform is starting to lose subscribers.
The House of Mouse on Wednesday released its fiscal first-quarter results, with growth being driven primarily by the company’s box office dominance and profit gains in its streaming business. After rising 2.5% in the morning, the company’s shares were down 1.63% in the afternoon.
Sales of Novo Nordisk’s (NVO) blockbuster weight loss drug Wegovy doubled in the fourth quarter, but the Danish pharmaceutical giant warns that sales growth for all its drugs — including Ozempic — is expected to slow in the coming year.
Wegovy sales skyrocketed 107% to 19.8 billion Danish Krone ($2.8 billion) in the fourth-quarter of 2024, compared with in 9.6 billion Danish Krone ($1.4 billion) during the the same period last year. The drug just beat analysts’ expectations of $2.7 billion, according to a consensus estimate from FactSet.
The company’s stock rose nearly 4.8% in the afternoon.
—Britney Nguyen and Bruce Gil contributed to this article.
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