Amazon (AMZN) will open up by nearly 6.0% in Friday morning trade. The company has exceptional third-quarter results.
Amazon reported a $1.43 a share GAAP EPS after revenue increased by 11% year over year to $158.88 billion. The AWS segment was a standout. Revenue grew by 19% year over year to $27.5 billion, with an operating margin of 37.8% exceeding the 33% consensus estimate.
Intel (INTC), unlike Advanced Micro Devices (AMD), will open up by around 7%. The struggling chip supplier for PCs and notebooks posted a non-GAAP EPS loss of $0.46.
Revenue fell by 6.2% Y/Y to $13.28 billion. In Q4, Intel expects to lose $0.24 a share on revenue of $13.3 billion to $14.3 billion. Speculators should trade INTC stock, taking advantage of the bullish sentiment.
Apple (AAPL) reported a 12% Y/Y rise in service revenue. Overall, revenue grew by 6.1% Y/Y to $94.93 billion. To reward shareholders, Apple will use its $27 billion in operating cash flow to return over $29 billion to its shareholders.
Although Apple will pay a $0.25 a share dividend, it should consider raising that payout instead of buying back shares. In the medium term, Apple’s management needs a strong holiday quarter for its iPhones. If consumers are delaying their device updates, and unwilling to pay the high prices, Apple cannot raise its dividend.