- Starbucks Customers Keep Buying Despite Increased Prices
- Uber Revenue Doubles
- Credit Card Spending Increases
Earnings season continues to plow along with results coming in, shall we call it, less bad than feared. Last night after the close, Uber
Despite inflationary pressure and concerns about consumer spending, Starbucks reported numbers suggesting no change in customer spending habits despite price increases. Starbucks has proven itself something of an anomaly in its impervious resistance to economic conditions. People, this person being one of them, simply want their coffee.
Uber revenue doubled from a year ago. While their Uber Eats growth slowed, the ride service remained strong. Uber also saw an uptick in drivers as people began looking for side hustles to offset rising inflation with additional sources of income. Lyft
Caterpillar, which often serves as a gauge on the overall economy, reported strong sales in North America. Those sales offset weaker sales in both Europe and Asia Pacific. Again, in a trend we’re seeing this quarter, management offered forward-looking statements that were more optimistic than many expected.
Advanced Micro Devices reaffirmed full year forecasts but warned of a weak third quarter, sending the stock lower in the after-hours last night. It’s interesting that despite a softer outlook for Q3, management didn’t temper full-year expectations. This could be a potential sign that the company does not expect a long-term period of economic weakness. That hypothesis may have been backed by news from credit card issuers.
The biggest surprising news came from Robinhood, which announced earnings last night along with a 23% reduction in staff. Robinhood has suffered from a client slowdown since Crypto and the meme stock craze. It’ll be interesting to see if the announced cost cutting efforts turn the momentum.
Despite evidence of a weakening economy, retail customers continue to rack up credit card debt. JPMorgan and Capital One
tastytrade, inc. commentary for educational purposes only.