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The Nasdaq and other major stock market indexes dipped Wednesday morning after underwhelming earnings reports from Google parent Alphabet (GOOGL-8.09%) and chipmaker Advanced Micro Devices (AMD-8.59%). Other tech stocks such as Apple (AAPL-1.17%), Amazon (AMZN-2.63%), and Tesla (TSLA-2.52%) were also in the red.
Shortly after the opening bell, the tech-heavy Nasdaq was down about 0.69%, while the Dow Jones Industrial Average and S&P 500 slipped about 0.06% and 0.25%, respectively.
Alphabet and AMD stock falls after missing revenue
Shares of Alphabet (GOOGL-8.09%) fell more than 8% in the morning 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-0.73%). Net income was expected at $26.2 billion, while analysts estimated earnings of $2.13 per share.
Shares in chipmaker Advanced Micro Devices (AMD-8.59%) fell 10% after the company’s fourth-quarter data center revenue missed expectations.
Disney is starting to shed streaming subscribers
Disney’s (DIS-1.00%) 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. Disney stock rose about 2.5% in the morning.
The Ozempic boom is slowing down
Sales of Novo Nordisk’s (NVO+4.94%) 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 4.2% in the morning.
—Britney Nguyen and Bruce Gil contributed to this article.