Weekly Preview: This week's featured earnings (GOOG, META, MSFT, TSLA)
SFriday's trading may have ended on a slightly mixed note, but the market is in “risk-off” mode ahead of first-quarter earnings season as the Nasdaq Composite Index suffers its sixth consecutive decline. They seem to have decided that this is the preferred approach. The tech-heavy index is in its longest slump in more than a year, which could be a sign that tech stocks are oversold.
Concerns related to geopolitical tensions and persistent inflation didn't help, but heading into the first quarter earnings season, the market was focused on whether tech giants like the Magnificent Seven could reinvigorate their stock prices. I'm paying attention. alphabet(google, Google),Amazon(AMZN), apple (AAPL), Metaplatform (Meta), Microsoft (MSFT), NVIDIA (NVDA) and Tesla (TSLA) has been a big winner over the past year. However, since April started, the story has changed.
On Friday, the Nasdaq Composite Index fell 319.49 points, or 2.05%, to close at 15,282.01. Nvidia's 10% decline and Netflix's 9% decline put downward pressure on the index (NFLX). With both tech giants under pressure, the broader S&P 500 index also fell, dropping 43.89 points, or 0.88%, to close at 4,967.23. Notably, both indexes have been declining for six straight days, with the S&P 500 falling below 5,000 on Friday. However, the Dow Jones Industrial Average rose 0.4%, adding 211.02 points, or 0.56%, thanks to American Express.AXP) Revenues have since risen by more than 5%.
The S&P 500 index fell more than 3% this week, its worst weekly performance since March 2023. As it stands, the S&P 500 index, which has recorded three straight weeks of declines, is down more than 5% from 52 weeks. expensive. The Nasdaq Composite Index fell 5.5% for the week, marking the fourth straight week of declines and the longest negative streak in more than two years. For the week, the Dow Jones Industrial Average rose 0.01%, marking the blue-chip index's first positive week in three weeks.
Apart from geopolitical tensions and persistent inflation, markets are now expecting the Federal Reserve to become more hawkish and potentially delay its rate cut plans. At this point, it seems unlikely that there will be three rate cuts as expected at the beginning of the year. But tech earnings could revive sentiment. As for the next direction for the market, many of these questions will be answered in the coming weeks as we approach first-quarter earnings, especially as numbers from large tech companies emerge. Sho. The names I have my eye on are:
Tesla (TSLA) – Post-Close Report, Tuesday, April 23rd
Wall Street expects Tesla to earn 51 cents a share on revenue of $22.34 billion. This compares to the same period last year, when revenue was $23.33 billion and earnings per share were 85 cents.
What to watch: Unlike the Magnificent Seven tech companies, Tesla stock has reversed since the beginning of the year, falling 40% year-to-date compared to the S&P 500 index's 5% gain. Stocks also fell 14% in 30 days, hitting a 52-week low, while the S&P 500 index fell just 3%. Earlier this week, Deutsche Bank analyst Emmanuel Rozner downgraded Tesla from a “buy” rating to a “hold” rating, citing the possibility of a delay in the Model 2 launch to prioritize the robotaxi business.
“Without new cars, we feel that Tesla could face further headwinds to growth as competition from China and other OEMs emerges.With limited free cash flow, we feel Tesla could respond to We may not be able to do that,” Rozner added in Short. – Outlook for the period.
Dan Ives, an analyst at Wedbush Securities, echoed this sentiment, noting that the Model 2 initiative will be key to Tesla's growth in the coming years. The impact of price reductions on the company's FSD packages and Elon Musk's announcement of 10% global job cuts are factors investors are considering. Therefore, the company's profit margin will be a focus of attention.
However, for investors who have been waiting for a better entry point, I believe the drop in price is a buying opportunity. The company is betting big on FSD, the birth of the evolution of self-driving cars, designed to automate Tesla cars so they can move without a driver at the steering wheel. If the FSD can operate autonomously, it will not only increase Tesla's profit margins but also become a recurring revenue profit center for Tesla through its robotaxi ambitions. So with Tesla stock trading near its 52-week low, betting on a rebound over the next 12 to 18 months looks very attractive.
Metaplatform (Meta) – Post-close report, Wednesday, April 24th
Wall Street expects Facebook's parent company to earn $4.31 per share on revenue of $36.14 billion. This compares to earnings of $2.20 per share and revenue of $28.64 billion in the year-ago period.
What to watch: Meta Platforms has already enjoyed a nearly 40% share price increase since the beginning of the year, outpacing the S&P 500's 5% gain. Meanwhile, the parent company of Facebook, Instagram and WhatsApp has soared 125% over the past year, crushing the S&P 500's 20% gain. Wall Street analysts are bullish on the company's potential for further profitability.
Meanwhile, investors appear to be fully on board with management's various cost optimization efforts. On that note, the company maintains its efficiency gains momentum, and by my calculations, the recently announced round of layoffs will add $30 billion in value to shareholders. Additionally, META entered the Generative AI Competition with the newly announced Llama 3 language model and image generator.
These efforts not only significantly strengthen the company's financial position in the near term, but also suggest that the stock still has value to realize. Meanwhile, Citigroup analyst Ronald Georgie recently reiterated his “buy” rating on the stock and raised his price target from $525 to $590. “With Meta’s new advertising innovations (Adv.+ Creative, reminder ads, long-form Reels, etc.), new AI video architectures, and increased overall advertiser adoption, advertiser demand for Reels (and Meta) will continue to grow. We believe this will continue to improve,” Joshi wrote in a note to investors. As such, Wednesday's company should continue to show gradual improvement in these areas while demonstrating excellence among large technology companies in the quarter and full year.
alphabet (google , Google) – Post-close report, Thursday, April 25th
Wall Street expects Alphabet to earn $1.51 per share on revenue of $78.57 billion. This compares to the same period last year, when revenue was $69.79 billion and earnings per share were $1.17.
What to watch: Stabilizing advertising segments and favorable AI trends are boosting Alphabet's growth outlook. Investors expect this to be the case, and other growth trends attest to the stock's strength over the past 30 days. Shares of Google and YouTube's parent company have risen 11% since the beginning of the year, after rising 60% over the past year, outpacing the S&P 500's 5% rise.
In particular, the resurgence of digital advertising is pushing up stock prices.But it's also Google these days Gemini released, whose latest large-scale language model got investors very excited. The generative AI market is currently growing at 42% and could reach $1.3 trillion by 2032. according to According to estimates by Bloomberg Intelligence. Much of the revenue growth from generative AI, estimated at $247 billion by 2032, will come from demand for the infrastructure needed to train AI models.
Additionally, some estimates suggest that annual revenue from AI-assisted digital advertising businesses could reach $192 billion by 2032, and revenue from AI servers could reach $134 billion. Google plans to license Gemini to customers through the Google Cloud platform so that they can leverage Gemini in their own applications. Gemini will also power his Google advertising products, Chrome browser, and other Google assets around the world. In essence, Gemini is the future of Google. On Thursday, investors will expect the company to provide clearer details about Gemini's money-making ability.
Microsoft (MSFT) – Report after the close of trading on Thursday, April 25th.
Wall Street expects Microsoft to earn $2.82 per share on revenue of $60.76 billion. This compares to the same period last year, when revenue was $52.86 billion and earnings per share were $2.45.
What to watch: Microsoft's stock price has been on an impressive rise since the beginning of the year, rising steadily from about $370 to $425, an increase of nearly 15% in just four months. This rapid growth has helped the software giant overtake Apple (AAPL) is rated as the world's most valuable company by market capitalization. Microsoft stock, a pillar of the Magnificent Seven, has become a staple in the portfolios of both retail and institutional investors.
Meanwhile, frothy stock valuations have value investors questioning whether there's any value to be realized. The company's advances in generative artificial intelligence and the billions of dollars it has spent as part of it. investment OpenAI's ChatGPT continues to be a driving force. Microsoft is also starting to monetize AI, launching Copilot, which leverages AI to power its productivity software suite. Currently used by 40% of Fortune 100 companies and priced at $30 per month, analysts say Copilot could boost Microsoft's fiscal 2025 revenue by up to $9 billion at $30 per user per month. It is assumed that there is a sex.
Additionally, in terms of cloud growth, as of the third quarter, Microsoft Azure had a 24% market share in cloud infrastructure. Microsoft definitely boasts an established history of success and looks poised for a promising future. Through strategic investments in gaming, cloud technology, and artificial intelligence, the company is positioned to remain profitable in an ever-changing technology landscape. Still, the company's guidance on Thursday will gauge how confident management is about the company's long-term growth potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Summarize this content to 100 words
SFriday's trading may have ended on a slightly mixed note, but the market is in “risk-off” mode ahead of first-quarter earnings season as the Nasdaq Composite Index suffers its sixth consecutive decline. They seem to have decided that this is the preferred approach. The tech-heavy index is in its longest slump in more than a year, which could be a sign that tech stocks are oversold.
Concerns related to geopolitical tensions and persistent inflation didn't help, but heading into the first quarter earnings season, the market was focused on whether tech giants like the Magnificent Seven could reinvigorate their stock prices. I'm paying attention. alphabet(google, Google),Amazon(AMZN), apple (AAPL), Metaplatform (Meta), Microsoft (MSFT), NVIDIA (NVDA) and Tesla (TSLA) has been a big winner over the past year. However, since April started, the story has changed.
On Friday, the Nasdaq Composite Index fell 319.49 points, or 2.05%, to close at 15,282.01. Nvidia's 10% decline and Netflix's 9% decline put downward pressure on the index (NFLX). With both tech giants under pressure, the broader S&P 500 index also fell, dropping 43.89 points, or 0.88%, to close at 4,967.23. Notably, both indexes have been declining for six straight days, with the S&P 500 falling below 5,000 on Friday. However, the Dow Jones Industrial Average rose 0.4%, adding 211.02 points, or 0.56%, thanks to American Express.AXP) Revenues have since risen by more than 5%.
The S&P 500 index fell more than 3% this week, its worst weekly performance since March 2023. As it stands, the S&P 500 index, which has recorded three straight weeks of declines, is down more than 5% from 52 weeks. expensive. The Nasdaq Composite Index fell 5.5% for the week, marking the fourth straight week of declines and the longest negative streak in more than two years. For the week, the Dow Jones Industrial Average rose 0.01%, marking the blue-chip index's first positive week in three weeks.
Apart from geopolitical tensions and persistent inflation, markets are now expecting the Federal Reserve to become more hawkish and potentially delay its rate cut plans. At this point, it seems unlikely that there will be three rate cuts as expected at the beginning of the year. But tech earnings could revive sentiment. As for the next direction for the market, many of these questions will be answered in the coming weeks as we approach first-quarter earnings, especially as numbers from large tech companies emerge. Sho. The names I have my eye on are:
Tesla (TSLA) – Post-Close Report, Tuesday, April 23rd
Wall Street expects Tesla to earn 51 cents a share on revenue of $22.34 billion. This compares to the same period last year, when revenue was $23.33 billion and earnings per share were 85 cents.
What to watch: Unlike the Magnificent Seven tech companies, Tesla stock has reversed since the beginning of the year, falling 40% year-to-date compared to the S&P 500 index's 5% gain. Stocks also fell 14% in 30 days, hitting a 52-week low, while the S&P 500 index fell just 3%. Earlier this week, Deutsche Bank analyst Emmanuel Rozner downgraded Tesla from a “buy” rating to a “hold” rating, citing the possibility of a delay in the Model 2 launch to prioritize the robotaxi business.
“Without new cars, we feel that Tesla could face further headwinds to growth as competition from China and other OEMs emerges.With limited free cash flow, we feel Tesla could respond to We may not be able to do that,” Rozner added in Short. – Outlook for the period.
Dan Ives, an analyst at Wedbush Securities, echoed this sentiment, noting that the Model 2 initiative will be key to Tesla's growth in the coming years. The impact of price reductions on the company's FSD packages and Elon Musk's announcement of 10% global job cuts are factors investors are considering. Therefore, the company's profit margin will be a focus of attention.
However, for investors who have been waiting for a better entry point, I believe the drop in price is a buying opportunity. The company is betting big on FSD, the birth of the evolution of self-driving cars, designed to automate Tesla cars so they can move without a driver at the steering wheel. If the FSD can operate autonomously, it will not only increase Tesla's profit margins but also become a recurring revenue profit center for Tesla through its robotaxi ambitions. So with Tesla stock trading near its 52-week low, betting on a rebound over the next 12 to 18 months looks very attractive.
Metaplatform (Meta) – Post-close report, Wednesday, April 24th
Wall Street expects Facebook's parent company to earn $4.31 per share on revenue of $36.14 billion. This compares to earnings of $2.20 per share and revenue of $28.64 billion in the year-ago period.
What to watch: Meta Platforms has already enjoyed a nearly 40% share price increase since the beginning of the year, outpacing the S&P 500's 5% gain. Meanwhile, the parent company of Facebook, Instagram and WhatsApp has soared 125% over the past year, crushing the S&P 500's 20% gain. Wall Street analysts are bullish on the company's potential for further profitability.
Meanwhile, investors appear to be fully on board with management's various cost optimization efforts. On that note, the company maintains its efficiency gains momentum, and by my calculations, the recently announced round of layoffs will add $30 billion in value to shareholders. Additionally, META entered the Generative AI Competition with the newly announced Llama 3 language model and image generator.
These efforts not only significantly strengthen the company's financial position in the near term, but also suggest that the stock still has value to realize. Meanwhile, Citigroup analyst Ronald Georgie recently reiterated his “buy” rating on the stock and raised his price target from $525 to $590. “With Meta’s new advertising innovations (Adv.+ Creative, reminder ads, long-form Reels, etc.), new AI video architectures, and increased overall advertiser adoption, advertiser demand for Reels (and Meta) will continue to grow. We believe this will continue to improve,” Joshi wrote in a note to investors. As such, Wednesday's company should continue to show gradual improvement in these areas while demonstrating excellence among large technology companies in the quarter and full year.
alphabet (google , Google) – Post-close report, Thursday, April 25th
Wall Street expects Alphabet to earn $1.51 per share on revenue of $78.57 billion. This compares to the same period last year, when revenue was $69.79 billion and earnings per share were $1.17.
What to watch: Stabilizing advertising segments and favorable AI trends are boosting Alphabet's growth outlook. Investors expect this to be the case, and other growth trends attest to the stock's strength over the past 30 days. Shares of Google and YouTube's parent company have risen 11% since the beginning of the year, after rising 60% over the past year, outpacing the S&P 500's 5% rise.
In particular, the resurgence of digital advertising is pushing up stock prices.But it's also Google these days Gemini released, whose latest large-scale language model got investors very excited. The generative AI market is currently growing at 42% and could reach $1.3 trillion by 2032. according to According to estimates by Bloomberg Intelligence. Much of the revenue growth from generative AI, estimated at $247 billion by 2032, will come from demand for the infrastructure needed to train AI models.
Additionally, some estimates suggest that annual revenue from AI-assisted digital advertising businesses could reach $192 billion by 2032, and revenue from AI servers could reach $134 billion. Google plans to license Gemini to customers through the Google Cloud platform so that they can leverage Gemini in their own applications. Gemini will also power his Google advertising products, Chrome browser, and other Google assets around the world. In essence, Gemini is the future of Google. On Thursday, investors will expect the company to provide clearer details about Gemini's money-making ability.
Microsoft (MSFT) – Report after the close of trading on Thursday, April 25th.
Wall Street expects Microsoft to earn $2.82 per share on revenue of $60.76 billion. This compares to the same period last year, when revenue was $52.86 billion and earnings per share were $2.45.
What to watch: Microsoft's stock price has been on an impressive rise since the beginning of the year, rising steadily from about $370 to $425, an increase of nearly 15% in just four months. This rapid growth has helped the software giant overtake Apple (AAPL) is rated as the world's most valuable company by market capitalization. Microsoft stock, a pillar of the Magnificent Seven, has become a staple in the portfolios of both retail and institutional investors.
Meanwhile, frothy stock valuations have value investors questioning whether there's any value to be realized. The company's advances in generative artificial intelligence and the billions of dollars it has spent as part of it. investment OpenAI's ChatGPT continues to be a driving force. Microsoft is also starting to monetize AI, launching Copilot, which leverages AI to power its productivity software suite. Currently used by 40% of Fortune 100 companies and priced at $30 per month, analysts say Copilot could boost Microsoft's fiscal 2025 revenue by up to $9 billion at $30 per user per month. It is assumed that there is a sex.
Additionally, in terms of cloud growth, as of the third quarter, Microsoft Azure had a 24% market share in cloud infrastructure. Microsoft definitely boasts an established history of success and looks poised for a promising future. Through strategic investments in gaming, cloud technology, and artificial intelligence, the company is positioned to remain profitable in an ever-changing technology landscape. Still, the company's guidance on Thursday will gauge how confident management is about the company's long-term growth potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
https://www.nasdaq.com/articles/weekly-preview-earnings-to-watch-this-week-goog-meta-msft-tsla Weekly Preview: This week's featured earnings (GOOG, META, MSFT, TSLA)
