Wall Street Breakfast Podcast: U.S. Restricts QCOM, INTC


Office building with Huawei logo


Listen below or on the go on Apple Podcasts and Spotify

Biden administration reportedly revokes export licenses to supply Huawei with chips. (00:24) Reddit (RDDT) delivers profitable quarter on an adjusted EBITDA basis in first results since IPO. (01:13) Royal Caribbean (RCL) to hire thousands to keep up with record cruise demand – report. (02:23)

This is an abridged transcript of the podcast.

The Biden administration has reportedly revoked Qualcomm (NASDAQ:QCOM) and Intel’s (NASDAQ:INTC) export licenses.

The Financial Times reported, citing people familiar with the situation, that the Commerce Department revoked the licenses that allowed the firms to supply Huawei with chips for its laptops and mobile phones.

Qualcomm did not immediately respond to a request for comment to Seeking Alpha. Intel declined to comment.

Huawei is already under tough sanctions from lawmakers in Washington, some of which date back to the Trump administration. However, Republican lawmakers have reportedly asked the Biden administration to go even further amid allegations that Huawei helps the Chinese government engage in cyber espionage. Huawei and Beijing have denied the claims.

Reddit (NYSE:RDDT) is up 14% premarket after the social media company announced its first profitable quarter on an adjusted EBITDA basis and added more than 20M daily active users to its platform from a year ago.

Class A shares of RDDT jumped as much as 22.2% after hours on Tuesday.

Reporting its first results since its market debut in late March, Reddit’s (RDDT) Q1 report showed a wider loss driven by initial public offering (IPO) expenses, with its loss per share ballooning to $8.19 from $1.05 a year ago. However, its revenue surged 48% Y/Y to $243M. Analysts had been expecting the company to lose $6.32 per share on revenue of $213.98M.

Reddit’s (RDDT) daily active users climbed 37% Y/Y to an average 82.7M in Q1, almost evenly split across its U.S. and international markets. Its average revenue per user increased 8% to $2.94.

Turning to the social media firm’s guidance, the company sees Q2 revenue of $240M to $255M, compared to a consensus estimate of $227.52M.

Business seems to be booming at Royal Caribbean.

Reuters reported that the cruise line is set to hire 10,000 new workers this year.

Royal Caribbean (NYSE:RCL) is in talks with tourism boards and port operators to recruit workers as it faces record cruise demand.

The cruise operator is in talks with port authorities in the British Virgin Islands and St. Maarten, as well as the Gambia Tourism Board.

The company and its rival Carnival (CCL) also reached out to the Caribbean Maritime University in Jamaica to increase short-term certification courses to train more potential workers.

Demand for cruises is on the rise, with Royal Caribbean’s (RCL) bookings surging to record levels in Q1 despite higher ticket pricing. Consumer spending onboard and pre-cruise purchases have also been strong, leading to the company raising its guidance.

Shares of Royal Caribbean (RCL) have gained 52% in the last six months, while Carnival (CCL) climbed 12%.

Other articles on Seeking Alpha:

Boy given Pfizer experimental Duchenne muscular dystrophy therapy dies

Tesla in China: Elon Musk eyes robotaxi testing; top exec returns to lead local business

TikTok sues U.S. government over law forcing its sale or ban

Catalyst watch:

  • Philip Morris International (PM) will hold its annual shareholder meeting. There is some speculation that the executive compensation proposal could face shareholder resistance.

  • Notable investor events include AerCap Holdings N.V. (AER) Capital Markets Day to review the company’s strategy and operations and Investor Day events for Oceaneering International (OII) and KBR (KBR).

  • Costco (COST) is expected to release its monthly sales report.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are mixed. Crude oil is down 1.1% at $77 per barrel. Bitcoin is down 2.8% at more than $62,000.

In the world markets, the FTSE 100 is up 0.6% and the DAX is up 0.5%.

The biggest movers for the day premarket: Twilio (NYSE:TWLO) is down 7% despite surpassing expectations in Q1. However, the company provided softer revenue guidance for Q2.

On today’s economic calendar:

  • 10:30 EIA Petroleum Inventories

  • 11:00 Fed’s Philip Jefferson will participate in a moderated discussion about careers in economics

  • 1:30 PM Fed’s Lisa Cook will speak on financial stability at the Brookings Institution in Washington, D.C.

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