Fast Money Blog- 5/9/25
There was a lot going on on Wall Street this week, with earnings releases from many major companies and Trump’s deal on tariffs with the U.K.
On Tuesday, May 6th, Advanced Micro Devices, Inc. (AMD) released its Q1 2025 earnings.
Top-line quarterly revenue came in at $7.4 billion, up 36% year over year.
Q1 Revenue broke down like this:
AMD’s Data Center segment, which includes GPU’s, AI chips and data processors brought in $3.7 billion, up 57% year-over-year.
Their Client and Gaming segment, which includes chips for consumer devices such as laptops, gaming PCs and game consoles, rose 28% year-over-year to $2.9 billion for the quarter.
However, despite these gains, the company said that during the current quarter it expects to be hit with $800 million in costs because of latest tariffs imposed by the Trump administration on exports of AI chips destined for China and other countries.
These circumstances make semi-conductor chip makers not the best investment at this time.
I highly recommend that you hold on to your existing shares of AMD as we see how this plays out.
Disney Shocks Wall Street With Their Latest Earnings Release
The Walt Disney Company (DIS) posted excellent earnings for Q2 2025 with top-line revenue of $23.6 billion, up 7% from a year earlier.
The bright spot for Disney was their Entertainment revenue, which includes Linear Networks, Direct-to-Consumer (streaming services) and Content Sales/Licensing. Revenue for this segment was $10.7 billion, up 9% for the quarter year-over-year.
Entertainment Revenue Details You Need to Know
Direct-to-Consumer (streaming) revenue was up 8%, to $6.1 billion.
The company's streaming operating profit reached $336 million, up from $47 million the same quarter last year.
In addition, Disney+ added 1.4 million subscribers in Q2
Disney’s Experiences segment, which includes both domestic and international parks, had quarterly revenue of $8.8 billion, a rise of 6% year-over-year.
And although international park revenue was down 5% for the quarter, shortly after releasing their earnings report, Disney announced plans to build a new theme park and resort in Abu Dhabi, United Arab Emirates.
This marks their first major expansion into the Middle East and their seventh global resort.
This project will be developed in partnership with Miral, a regional leader in immersive experiences, who will build, develop, operate and fully fund the new resort with Disney Imagineers overseeing its creative design.
Here’s the win for Disney: they don’t have to invest any capital in this venture! Plus they get to reach a new audience, as a third of the world’s population is within a four-hour flight of the United Arab Emirates.
On anticipation of future theme park and streaming revenue, the stock is up $12 post-earnings.
On Thursday, May 8th, President Trump announced that United States and the UK had reached a deal that would reduce tariffs on certain imports, such as steel, cars and ethanol, which would deepen the economic relationship between the two countries.
Exact details have not been released, but it appears as if car export tariffs from the UK to the U.S. will drop to 10% for a quota of 100,000 cars per year and tariffs on steel exports will fall from 25% to zero. However, the 10% tariff on other UK imports will remain in place.
Although this addresses some goods with the UK, most economics view this as a poor deal for the American consumer, as they will still be seeing higher prices for other imports coming from the UK into the U.S.
Over the next 7 days, I see the stock market retracing slightly and then staying range-bound until the next earnings period.
Be patient. Be positive.
Tyrone Jackson, The Wealthy Investor