Watch Amgen, Rivian, Lucid, Vertex, and AMD
The quarterly earnings report card continued on Tuesday. Advanced Micro Devices (AMD) is the stock to watch after shares closed near a 52-week high ahead of results.
AMD disappointed investors. It posted revenue growing by 31.7% Y/Y to $7.69 billion. The non-GAAP EPS of $0.48 implies an annualized price-to-earnings ratio of 91 times. AMD stock will fall as investors take profits.
Tesla (TSLA) is not the only EV firm that is struggling. Rivian (RIVN) posted a Q2 loss of $0.80 (non-GAAP). Revenue grew by 12.1% Y/Y to $1.3 billion. It produced 5,979 vehicles in its Illinois plant and delivered 10,661. The ongoing losses on modest growth are not sustainable. The government plans to wind down EV tax credits, which will further reduce demand.
Lucid Motors (LCID) will fall by around 8.5% this morning. The firm posted a 24-cent loss (non-GAAP). Revenue grew by 29.3% Y/Y to 4259.4 million. Lucid cut its 2025 production outlook. It now expects to produce 18,000 to 20,000 units, down from 20,000.
In the drug sector, Vertex Pharmaceuticals (VRTX) lost 20.6% on Tuesday. In Q2, revenue increased by 11% to $2.96 billion. Despite the adjusted profit of $4.52 a share, the VX-993 failure disappointed investors.
The failed trial will mean that Vertex will not continue to progress the drug into pivotal development. This was a monotherapy to treat acute pain.
