Green Mountain Coffee Roasters (GMCR) soared at staggering 40% in early trading on news that Coca-Cola will be taking a 10% stake in the company for $1.25 billion. The companies will work together to launch Green Mountain's new cold drink machine due as soon as October. Shares of its likely new rival, SodaStream (SODA) were volatile in early trading. The stock initially was sharply lower on the news, but then turned sharply higher on speculation the Coke investment in Green Mountain is validation of the sector. Green Mountain also reported adjusted earnings of $0.96 cents which beat estimates by $0.06. Revenue rose almost a percent but missed estimates.
Dow component, Walt Disney (DIS) rallied in early trading after the company beat on earnings estimates and saw revenue rise 9%, which also beat estimates. The beat was helped by Disney's hit movie "Frozen" which grossed more than $870 million worldwide and is headed to Broadway.
General Motors (GM) was down in early trading after the company reported an ugly earnings miss this morning. GM posted adjusted earnings of $0.67 a share, which missed estimates by $0.21. Revenue rose 3% but missed expectations as well. Even with strong sales in North America, GM struggled with its international sales especially in South America and Asian markets outside of China.
Akamai Technologies (AKAM) posted adjusted earnings that beat estimates by $0.03 while revenue rose 15% and also beat estimates. The networking company, which helps deliver content, has benefited from a surge in internet traffic.
And Costco (COST) reported total same-store sales for January rose 4%. That beat expectation of 3.3%, even with a decline in international sales and weak fuel prices.