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Motley Fool Hidden Gems Investing

Earnings: Big Tech Surprises and Disappointments

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 30 July 2021

⏱️ 39 minutes

🧾️ Download transcript

Summary

Amazon has its worst day in over a year after missing expectations. Alphabet hits a new high and announces a $50 billion buyback plan. Apple and Microsoft dip despite reporting huge profits. And McDonald’s serves up a chicken sandwich-fueled surprise. Motley Fool analysts Emily Flippen and Jason Moser discuss those stories and weigh in on the latest earnings from Facebook, PayPal, Shopify, Starbucks, Qualcomm, Twilio, Teladoc Health, Pinterest, and Hasbro. Plus, our analysts share two stocks on their radar: Beyond Meat and Etsy. Looking for more stocks for your radar? Get 50% off our Stock Advisor service just by going to http://RadarStocks.fool.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Everybody needs money. That's why they call it money.

0:07.0

From full global headquarters, this is Motley Fool Money. It's the Motley Fool Money

0:20.5

radio show. I'm Chris Hill joining me this week. Senior analyst Jason Moser and Emily

0:24.7

Flippen. Good to see you both. Hey Chris. It's earnings, Paloza, nearly 1,000 companies

0:30.8

reported earnings this week and we are going to talk about each and every one of them.

0:35.7

All right, not all of them but we will have a couple of stocks on our radar. We're going

0:39.3

to start with Big Tech. Amazon had its worst single day of trading in over a year. Shares

0:46.2

of Amazon fell more than 7% on Friday. After disappointing second quarter results came

0:52.2

with weak guidance for the current quarter. Emily, I should add that despite Wall Street's

0:57.5

disappointment, this was the third quarter in a row that Amazon's revenue was north

1:02.3

of $100 billion. Part of the reaction we're seeing today is just because

1:06.9

misses like this are really unusual for Big Tech and Amazon in particular. But I think

1:12.6

we can all afford to be a little bit more giving with Amazon here, given the unpredictability

1:17.5

of things like shopping online. The rollout of vaccines for instance, the reopening of

1:22.7

the economy. A management was put forward with a really tough challenge of trying to figure

1:27.5

out what's guidance going to be for like this quarter but also quarters into the future.

1:32.5

So despite the fact that revenue came in just a little bit under expectations alongside

1:36.9

operating profit, earnings still handedly beat there up 50% year-over-year to earnings

1:42.5

up over $15 a share versus the $12.30 that was expected. So there's definitely some

1:48.7

strong silver lining for Amazon in this earnings season. I will say it'll be interesting

1:54.3

to keep an eye on what happens with Amazon and in particular it's just its prime business,

1:58.4

its e-commerce shopping through the remainder of 2021. Part of their hesitance to give

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