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AMZN, MSFT, ZNGA & OUTR Soar; Callaway Skyrockets Despite Losses; NQ Mobile Drops 47%

Hot Stock Minute

Amazon (AMZN) and Microsoft (MSFT) are both surging on their earnings, which came out after yesterday's closing bell. The climb puts Amazon at an all-time high. As of yesterday's close it was already up 29% year-to-date. Amazon had adjusted losses of 9-cents a share for the quarter. That's exactly what was expected. Investors seem to be ignoring the fact that the company issued guidance for the current quarter that was below consensus. Not a good thing when you consider the period includes the holiday season. As for Microsoft, the software giant had a healthy beat for the period with earnings of 62-cents a share, 8-cents above estimates. Revenues also beat expectations. Shares of Microsoft were already up 22% going into today's session.

Next up are service sector stocks Zynga (ZNGA) and Outerwall (OUTR). Zynga lost 2-cents for the quarter, but it was expected to lose 4-cents, and revenue topped estimates at $152-million. Revenue was actually down 36% from a year ago, and the company lowered its outlook for the current quarter. As for Outerwall, the owner of Redbox and Coinstar, it has been up more than 7%. Outerwall beat estimates, earning 97-cents a share on $587-million. Even ahead of this morning's gains Outerwall shares were up 26% over the past month.

Two other companies are making giant moves on earnings. First, up Qlik (QLIK) which has been down 20%. The company made a nickel a share for the quarter, beating estimates by 2-cents. Revenue however was about 4% below expectations and the company lowered its forecast. Prior to the drop we're seeing now, the stock had been up 48% year-to-date. We also have Callaway Golf (ELY) which is up 16%. Callaway had adjusted losses of 18-cents for the quarter, but analysts expected a dime worse than that. Revenue also topped consensus. Callaway says it benefited from cost-cutting as well as a licensing agreement for clothing and footwear. The company is also upping its forecast.

NQ Mobile (NQ) plunged 47% yesterday before trading was suspended. The drop came after research firm Muddy Waters called NQ a massive fraud. N-Q, in case you haven't hear of it before is a Chinese mobile security company. Muddy Waters claims 3/4 of NQ’s purported revenue is faked. Even with yesterday's drop NQ shares have doubled since the start of the year. They hit a 52-week high on Monday.

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