Yahoo Finance Trending tickers: Amazon | WPP | Apple | Capita
The latest investor updates on stocks that are trending on Friday
Amazon (AMZN)
Amazon shares were up more than 8% in pre-market trading after the company beat profit forecasts for the second quarter as its Prime members snapped up bargains.
The tech firm said its Prime Day sales event on 11-12 July was its largest ever, saving customers $2.5bn (£2bn) on deals.
It revealed overall sales of $134.4bn, up 11%, despite a continued slowdown in sales of Amazon Web Services as the company lost market share to the likes of Microsoft (MSFT) and Google (GOOG).
Net profits came in at $6.7bn in the three months to July, compared to a loss last year after an investment write-down.
Read more: LIVE: FTSE pushes higher as Amazon profits send shares surging
Amazon's third quarter revenue outlook was a striking beat, coming in between $138bn and $143bn, ahead of the $138.3bn expected.
It comes as the Seattle-based company has moved locations, cutting corporate headcount and reducing costs after growth during the pandemic. So far it has announced it will slash 27,000 jobs in 2023.
WPP (WPP.L)
WPP shares slid as much as 7% on Friday, sinking to the bottom of the FTSE, after it cut its full year guidance, blaming companies for delaying spending on technology projects.
The advertising group said its growth excluding pass-through costs will now be 1.5% to 3%, having previously guided for 3% to 5%. This caused City brokers to slash share price targets.
Its North American business declined by 1.2% in the first half reflecting the lower revenues from technology clients.
Mark Read, chief executive, insisted that performance is “resilient” in all areas “except the USA, which was impacted in the second quarter by lower spending from technology clients and some delays in technology-related projects”.
It comes just a week after S4 Capital (SFOR.L), Sir Martin Sorrell's advertising group, also plunged after it warned on earnings.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said the lower outlook is "unwelcome but not wholly surprising".
Apple (AAPL)
Apple shares fell 2% in after-hours trading on Thursday night, and remains in the red before the bell in New York on Friday as falling iPhone sales offset earnings.
The tech firm said its iPhone revenue declined $39.67bn, while sales for iPads also disappointed, coming in at $5.79bn. Wearables likewise fell short at $8.28bn.
Revenues stood at $81.8bn in the quarter, marginally down 1% on the previous year.
Read more: Stocks that are trending today
However, services was a bright spot for Apple, rising a faster-than-expected 8% from the year-ago period to an all-time high for the segment. The company also beat expectations for overall revenue and earnings per share.
"Apple...faces challenges when it comes to revenues and looks set for a fourth successive revenue decline in Q4, the first time this has happened in 20 years," Michael Hewson at CMC Markets said.
"One thing in Apple’s favour is its move into India where it currently has low market share. The potential here is huge and the hope is that growth here will offset any slowdown in its more mature markets."
Capita (CPI.L)
Capita slumped 15% in London on Friday, the biggest faller on the FTSE 250 (^FTMC), after a recent Russian cyber attack heavily impacted the company.
The outsourcing firm dropped to a statutory pre-tax loss of £67.9m for the six months to 30 June following the impact of disposals and costs linked to the data breach. This was a fall from £100,000 profit the previous year.
The attack hacked its Microsoft Office 365 software and accessed the personal data of staff working for the company and dozens of clients.
Capita said the loss was also driven by business exits and a goodwill impairment.
It expects the cyber attack to cost between £20m and £25m, comprising of specialist professional fees, recovery and remediation costs and investments to its cyber security.
“Having taken extensive steps to recover and secure our data, using third party monitoring we still have found no evidence of any information in circulation, on the dark web or otherwise, more than three months after the cyber incident," it said.
Capita manages crucial services for local councils, the military, and the NHS.
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