The risk of a stock running up before its quarterly report is profit-taking. After markets closed on Tuesday, Advanced Micro Devices (AMD) posted Q3 results and issued its Q4 guidance. The stock dropped by 7.6%.
AMD earned $0.92 a share after revenue increased by 18% Y/Y to $6.82 billion. Data center revenue soared by 122% Y/Y to $3.5 billion. The PC market also demonstrated strength, as PC chip sales rose by 29%. Revenue from gaming and embedded fell by 69% Y/Y to $462 million.
Chipotle (CMG) will open down by around 5%. Despite revenue growth of 13% Y/Y, the 2024 FY growth rate in the mid to high single-digit range is not enough. CMG stock trades at a premium and must grow at a faster rate.
Chipotle has a P/E of around 60 times, which is over 200% that of the sector median of 19 times.
Visa (V) reported strong earnings and revenue, which was enough to fund a dividend hike.
F5 Networks (FFIV) closed at a fresh high, up by 10% on Tuesday. The firm reported a 5.6% Y/Y increase in revenue, to $746.67 million. F5’s additional $1 billion stock buyback is a catalyst for the stock. Investors may consider Ubiquiti (UI), Ciena (CIEN), and Lumentum (LITE) in the network sector.
