Dan Coatsworth, investment analyst at AJ Bell, recalls that this Business group -made up of Tesla, Microsoft, Alphabet, Apple, Meta, Amazon and Nvidia- made more profits in the stock market that “the main US and UK stock indices in 2023, so investors will be anxiously awaiting their latest set of results to see if that trend is likely to continue in 2024.”
“Investments in artificial intelligence (AI), antitrust measures, innovation, the growth of cloud computing and advertising revenue are among the hot topics of the results,” he says.
tesla
On this occasion, Tesla will be the first to submit to the market verdict, on January 24, while the other six will do the same next week, with the exception of Nvidia, which will publish in a few weeks. So far this month, Tesla’s cedar has been rising more than 12%.
Looking at Tesla’s results, Coatsworth recalled that the firm “has been cutting prices to increase sales volumes amid a more competitive market“, while Elon Musk warned that “the high interest rate environment would limit the affordability of Tesla vehicles and also noted that ramping up production of the new Cybertruck would take at least 18 months.”
The analyst consensus forecast for the next quarterly results is $0.72 earnings per share and $25.52 billion in revenuealthough this analyst emphasizes that “Tesla has not met revenue forecasts in four of the last five quarters.”
“Tesla has already given insight into its performance through quarterly vehicle production and delivery data released ahead of financial results. In the fourth quarter it produced 494,989 vehicles and delivered 484,507 vehicles, most of which were Model 3 or Y. “He managed to hit an annual delivery target of 1.8 million, which effectively gave him breathing room amid market concerns that competition was nipping at his heels,” he commented.
Microsoft
The Microsoft’s quarterly accounts will be made public on January 30, a company that in recent months “has taken a big step towards artificial intelligence through its partnership with Open AI, the developer of ChatGPT.” The yield of Microsoft is up more than 44% so far this month.
Analysts expect these quarterly results to incorporate earnings per share of $2.29 and revenue of $52.94 billion, while, on the question mark side, “the big issues are whether Microsoft can sustain solid growth in cloud computing and how it can take AI to the next level.”
Alphabet (Google)
The market will know the accounts of Alphabet, Google’s parent company, also on January 30following recent quarterly results in which “strong advertising revenue helped beat sales expectations, but weaker-than-expected performance in its cloud computing division disappointed the market.” The Cedear rises more than 40% so far this month.
The consensus expects earnings per share to reach $1.60, surpassing $1.05 a year agowhile estimating revenues of $85.16 billion, compared to the $76.05 billion reported in the last report.
“Cloud computing is the big unknown: one moment Alphabet is thriving in this area and the next it can’t sustain the growth momentum. The competition is fierce and it is difficult to predict before the results“, he assures.
Manzana
To know Apple’s results it will be necessary to wait until February 1stand these will be analyzed in detail by the market, after the apple firm reported “its first full year of decreased revenue since 2019 despite the progress of its services division and the return to growth of the iPhone.” “Weakness in China was part of the problem and demand for Mac computers and iPads has been disappointing”, he commented. He Apple’s cedar advances almost 37% so far this month.
The forecast is that the company will register earnings of $2.09 per share and revenue of $118 billionwhich would mean a slight increase in turnover compared to the previous year’s level.
“Consumers have been cautious about high spending in recent months, suggesting that Apple might not have had a great Christmas in terms of hardware sales. Lackluster demand in China may have continued and there are signs it is still moving with rare discounts on iPhones in the country in mid-January. Apple does not usually reduce its prices, so any promotion is a warning sign,” he says.
Goal
The parent company of Facebook, Instagram and WhatsApp will also present its accounts on February 1and earnings of $4.96 per share are expected, compared to losses of $1.76 per share in the same period last year, so “if expectations are not met, the share price could suffer a harsh punishment.” In the month, the Cedear increases more than 48%.
“The results are likely to include a reiteration that expenses will increase in 2024, driven by higher costs related to infrastructure and investment in AI. The hype around the metaverse has died down, but it continues to sweep the concept and any success of Apple’s Vision Pro headset could revive public interest in virtual worlds,” he details.
amazon
The agenda for February 1 is completed with the results of Amazon, for which analysts anticipate $0.78 earnings per share and $165.86 billion in revenuewhich is in line with the company’s own guidance, which estimates a turnover of between 160,000 and 167,000 million dollars. Amazon’s cedar rises more than 39% in the month.
“The uncertain economic outlook raises the possibility that companies will continue to find new ways to save money, including reducing IT costs, which could be problematic for Amazon’s cloud computing division. This problem could be offset by greater corporate interest in AI, which could benefit the group“, he assures.
Nvidia
Finally, Nvidia will present its results on February 21, for which earnings per share of $4.49 and revenue of $20.06 billion are expected. He Nvidia’s cedar increases more than 66% in the month.
“Nvidia is betting on AI, believing that the world is on the cusp of a radical change in the use of technology. Companies across all sectors are exploring ways to implement AI to improve productivity and that creates a huge runway for Nvidia to increase its profits“he concludes.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
