April 19, 2024
Trending Ticker: Meta, Apple, Amazon, Peloton

Trending Ticker: Meta, Apple, Amazon, Peloton

Meta stock is now up more than 16% in premarket trade after Thursday’s bumper earnings report. (SOPA Images via Getty Images)

Meta stock is now more than 16% higher in premarket trade after the bumper earnings report.

Mark Zuckerberg’s giant has beaten EPS by some margin over the last four quarters. This was 82.4% more than expected in September. December saw a decline of more than 7%.

Fourth-quarter revenue was $40.1 billion, beating the estimate of $39.18 billion and up 25% year-over-year.

The bottom line is that the pivot to artificial intelligence (AI) products has been one of the winning factors. AI will remain one of Meta’s main investment areas in 2024, with the company increasing its capital expenditure in this area by $2 billion.

The company also announced that it would pay a 50 percent per share dividend to investors for the first time, and authorized a $50 billion share buyback program. This will give CEO Zuckerberg about $700 million.

Amazon (AMZN)

Yahoo Finance US reported Thursday night that Amazon reported fourth-quarter earnings that beat analysts’ expectations and provide an optimistic outlook for the coming months.

Net sales came in at about $170 billion, compared with expectations of $166.2 billion. This is 14% more than the approximately $150 billion the company earned during the same period last year. The outlook for the current quarter also came in better than forecasts, with the company forecasting a top end profit of $143.5 billion.

“This Q4 was a record-breaking holiday shopping season and a strong finish to 2023 for Amazon,” CEO Andy Jassy said in the earnings release.

Some of its Big Tech siblings reacted more critically following Amazon’s strong earnings report and subsequent investor response, which largely beat estimates.

Apple’s revenue beat Q1 forecasts, coming in at $119.6bn, led by the iPhone which saw revenue of $69.7bn.

However, Apple’s results last quarter were hit by China regional revenues, with Greater China revenues well below forecasts at $20.8 billion, indicating the pressure is beginning to have an impact on sales.

It seems that Apple management is worried that this will continue, as this quarter is expected to be similar to last year.

Elsewhere in the business, iPad revenue reached $7 billion, Mac revenue reached $7.8 billion, and Wearables revenue reached $12 billion, slightly below forecasts. Services were also below forecasts at $23.1 billion.

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“The next few months are likely to be challenging for Apple as it deals with regulatory issues over its App Store in Europe, while its Watch has been the subject of issues regarding its blood oxygenation feature,” said Michael Hewson of CMC Markets.

“The launch of the Vision Pro at $3,500 is unlikely to make a difference in terms of sales, given how expensive it is. Apple is launching some new iPads, which may drive sales in this area next quarter , but iPhone remains its major revenue earner, so a slowdown in China will be a matter of concern, although the Indian market may offer a way out on this front.

The stock is down about 2.8% in premarket trade.

Peloton (PTON)

Peloton Interactive shares fell more than 20% by day’s end Thursday, hitting a record low as the fitness company reported mixed second-quarter results and third-quarter revenue of $700m to $725m. Guidance fell short of expectations. ,

It also warned of missing future targets for positive free cash flow as some of its initiatives have performed poorly.

WATCH: Amazon beats forecasts with the help of AI

Source: uk.finance.yahoo.com

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