Intel, AT&T, Shopify, Visa, and Mastercard – Weekly Digest (23-27 January)
This week, our focus was on Shopify, AT&T, Intel, Visa, and Mastercard. Let's find out how these stocks reacted to the latest events.
Shopify stock surged on pricing plan increases
On Monday 23 January, the stock price of Shopify Inc. (NYSE:SHOP), a Canadian developer of a platform for online stores and supplier of e-commerce software and services, grew by 8.79% to $44.04.
The stock quotes initially headed up after Deutsche Bank analyst Bhavin Shah changed the rating of Shopify Inc. from Hold to Buy and increased the target price from $40 to $50. According to Shah, with the product of the Canadian company becoming more and more popular among large renowned brands, there will be a significant increase in the number of clients in the upcoming quarters.
On Tuesday 24 January, Shopify Inc. reported its merchant monthly plan prices rising 33% on average. The company explained that its service rates had hardly changed for 12 years.
For the new merchants of the Shopify platform, the increase will come into force this week, while existing clients are granted a discount of three months. Moreover, users are provided with the opportunity to buy a year's subscription at the old rate. The news about the pricing plan increases sent the stock of Shopify Inc. up, surging 10.87% to $47.33.
AT&T report: quarterly loss grew to $23 billion
On Wednesday 25 January, American telecom company AT&T Inc. presented its report for Q4 and the whole of 2022. Revenue in October - December, compared to the statistics of the same months last year, recorded a 0.8% growth to $31.34 billion, which result was in accordance with the consensus forecast.
Net loss, originating in restructuring expenses, amounted to $23.16 billion, or $3.20 per share. In the previous year, the company could boast a net profit of $5.2 billion, or $0.66 per share. Revenue over the year reached $120.74 billion, net loss $7.06 billion, and loss per share $1.1 billion.
AT&T Inc. expects the corrected profit over 2023 to reach $2.35-2.45 per share. Wall Street experts forecast that it will be $2.53 per share. After the report and forecast were published, the stock price of AT&T Inc. (NYSE:T) gained 6.58%, amounting to $20.42.
Intel report: yearly profit dropped by 60%
On Thursday 26 January, a report for Q4 and the whole of 2022 was presented by Intel Corporation – the American developer and manufacturer of semiconductors, computing equipment, and components.
Quarterly revenue dropped by 32% to $14 billion, which is $0.45 billion less than analysts had forecast. Net loss amounted to $0.66 billion, and loss per share to $0.16. As you might remember, the net profit in Q4, 2021 was $4.6 billion, and the EPS reached $1.13.
The yearly revenue lost 20%, reaching $63.1 billion, and the net profit dropped by 60% to $8 billion or $1.94 per share. Intel Corporation management expects revenue in Q1, 2023 to reach $10.5-11.5 billion, and loss per share to go up to $0.8.
At the closing of trades on Thursday, the stock quotes of Intel Corporation (NASDAQ:INTC) climbed 1.31% to $30.09; but at the post-market, they reversed and lost 9.74%, reaching $27.16.
Visa and Mastercard reports: quarterly revenues recorded a 12% growth
On Thursday, quarterly reports were presented by the leaders of international payments Visa Inc. and Mastercard Inc. with their results exceeding the consensus forecasts. The revenue of Visa Inc. in Q1, financial 2023 recorded a 12% increase to $7.9 billion, net profit grew by 6% to $4.12 billion, and EPS by 8% to $1.99.
As for Mastercard Inc., Q4 2022 revenue saw a 12% increase to $5.8 billion, the net profit grew by 6% to $2.5 billion, and the EPS by 9% to $2.62. Over the whole of the last year, these indices recorded a growth of 18%, 14%, and 17%, to $22.2 billion, $9.9 billion, and $10.22, respectively.
On Thursday, trades closed with a minor decline of Visa Inc. stock (NYSE: V) and Mastercard Inc. stock (NYSE: MA) by 0.08% and 1.35%, to $224.71 and $377.24, respectively. After the end of the trading session, the stock of the first company gained 1.11% to $227.2, and the second company's stock dropped by 0.26% to $376.25.
This week, Shopify Inc. reported an increase in its service prices, which sent its stock quotes up, surging 11%. Quarterly reports were published by AT&T Inc., Intel Corporation, Visa Inc., and Mastercard Inc. – these stocks moved in different ways.