Why did Cisco's shares fall despite AI investments?

Cisco's shares fell about 4% in late trading due to a weaker-than-expected profit forecast for the current quarter, overshadowing positive outlooks fueled by artificial intelligence gains and increased spending on AI products.

What led to McDonald's fastest US sales growth in over two years?

McDonald's achieved its fastest US sales growth in over two years, with sales from established US restaurants jumping 6.8%, as value meals continued to resonate with cost-conscious diners.

Why did Zillow shares tumble significantly?

Zillow shares tumbled as much as 18% after the company forecast adjusted Ebitda for the first quarter that missed average analyst estimates, due to legal costs and expenses from its partnership with Redfin.

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Cisco's AI Hopes Dimmed by Weak Profit Forecast

12 Feb

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Summary

Cisco's forecast overshadowed by AI gains, shares fell 4%.
McDonald's US sales grew 6.8% due to value meals resonating.
Zillow shares dropped 18% on missed earnings forecast.

Cisco's AI Hopes Dimmed by Weak Profit Forecast

Cisco's shares experienced a notable decline of approximately 4% in late trading. This drop occurred despite the company's significant investments in new AI-focused products and a generally positive outlook. The networking equipment giant's stock had previously gained 30% last year. The company is also navigating industry-wide memory-chip shortages that are increasing costs.

Meanwhile, McDonald's reported a strong performance, with US sales from established restaurants surging 6.8% in the fourth quarter. This marks the fastest growth in over two years, attributed to the continued appeal of value meals among cost-conscious consumers. The company's international divisions also reported strong comparable sales, and its shares rose 2% in extended trading.

Zillow faced a significant downturn, with its shares tumbling as much as 18%. This sharp decline followed a first-quarter adjusted Ebitda forecast that failed to meet average analyst expectations. The home-search company is contending with increased legal costs and expenses related to its partnership with Redfin.