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Consumer Sector Update for 07/31/2020: BUD,SHAK,EXPE,AMZN

Consumer stocks turned mixed this afternoon, with the SPDR Consumer Staples Select Sector ETF Friday declining 0.7% while the SPDR Consumer Discretionary Select Sector ETF was posting a 0.2% gain, reversing a narrow retreat earlier Friday.

In company news, Anheuser-Busch Inbev (BUD) declined 6.5% after RBC Capital Markets Friday trimmed its price target for the brewery company by EUR4 to EUR71 previously although the RBC analysts also reiterated their outperform rating for the company's stock. The moves follow Anheuser-Busch Thursday reporting lower Q2 net income and revenue compared with year-ago levels.

Shake Shack (SHAK) fell almost 12% after the restaurant chain late Thursday reported a non-GAAP Q2 net loss of $0.45 per share, reversing a $0.27 per share adjusted profit during the same quarter last year and missing the Capital IQ consensus expecting a $0.38 per share net loss, excluding one-time items. Total revenue fell 0.9% during the three months ended June 24 to $91.8 million, also lagging the $92.6 million analyst mean.

Expedia (EXPE) dropped 5% after Q2 sales for the travel reservation plunged 82% from year-ago levels to $566 million and missed the Capital IQ consensus expecting $673.4 million for the three months ended June 30. Excluding one-time items, the net loss was $4.09 per share compared with a $1.77 per share adjusted profit last year and also trailing the analyst consensus expecting a $3.26 per share non-GAAP loss.

Among gainers, Amazon.com (AMZN) climbed 3.6% on Friday after the online retail giant reported net income and sales blowing past analyst estimates for its Q2 ended June 30 and also projected Q3 sales topping Wall Street forecasts. Q2 net income rose to $10.30 per share compared with $5.22 per share last year and exceeded the Capital IQ consensus expecting $1.50 per share. Net sales grew 40% to $88.9 billion, also topping the $81.29 billion Street view.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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