Earnings Season On PreMarket Prep: Airbnb, AMD Find Support After Q1 Reports

Two major first-quarter earnings reports were discussed on Wednesday’s PreMarket Prep Show. Both Airbnb Inc ABNB and Advanced Micro Devices, Inc. AMD were covered from both a technical and fundamental point of view on Benzinga's "PreMarket Prep" show.  

Airbnb Posts Q1 Beat, Raises Revenue Guidance: After the close on Tuesday, the company reported quarterly losses of 3 cents per share, which beat the analyst consensus estimate. The company reported quarterly sales of $1.51 billion, which beat the analyst consensus estimate of $1.45 billion.

The company forecast second-quarter 2022 revenue of $2.03 billion to $2.13 billion vs. a $1.97-billion estimate. 

PreMarket Prep's Take On Airbnb: When the issue was being covered on the show, it was trading at the $152.50 area. Co-host Dennis Dick has been warming up to this issue despite its high valuation.

“This one is on my shopping list if the market turns, but I am not chasing it up $7 today,” he said Wednesday. 

The author of this article discussed the issue in terms of the daily charts. Based on the last two days of price action, it was important to clear and hold the $155 level to set the stage for another leg higher.

ABNB Price Action: After a much higher open. ($152.55 vs. $145), the issue blasted to $158.74 and sharply reversed course. As of midday, it has found support above Tuesday’s close ($145) at $145.90 and is attempting to rebound.

Advanced Micro Devices Posts Q1 Beat, Raises Sales Guidance: After the close on Tuesday, AMD reported quarterly earnings of $1.13 per share, which beat the analyst consensus estimate of 91 cents.

The chipmaker reported quarterly sales of $5.89 billion, which beat the analyst consensus estimate of $5.52 billion. Also, the company forecast second-quarter sales of $6.3 billion-$6.7 billion vs the $6.38-billion estimate. 

PreMarket Prep's Take On AMD: When the issue was being discussed on the show, it was trading at the $97.20 area, which was higher by $6.

Co-host Dick, who is long the issue from a higher level, is sticking with it.

“It is a cheap stock that I bought after the $50 pullback, which was obviously too early,” he said. “I wanted some chip exposure long term, so I am not selling into this rally.”

The author of this article was cautious and alerted investors that if the issue did not take the after-hours high early on ($98.79), it may fade and surrender some of its gains.

AMD Price Action: After a much higher open ($98.28 vs. $91.13), it immediately peaked at $98.28 and sharply reversed course. As of 11:10 a.m. it had retreated but found support just under the top of Tuesday’s range ($92.21), as $91.70 stands as the low for the session. 

The discussion on both of the issues from Wednesday’s show can be found here:

Photo courtesy of Airbnb.