Tech Earnings: What Trends Have Investors Learned So Far?

The spotlight over the past few weeks has been on the world’s most valuable tech companies, such as Apple Inc. (APPL), Meta Platforms Inc (META), Microsoft Corp. (MSFT), and Amazon Inc. (AMZN), as releasing their much-awaited earnings.

 

Let’s look at the recently released earnings and examine the future outlook for each company.

 

 

Apple Inc. (APPL)

 

Apple Inc. (APPL) outperformed predictions, reporting better-than-expected earnings per share of $1.26, beating the estimated $1.19. The company’s revenue was $81.1 billion, down 1% year over year, but better than expected. 

 

The company anticipates growth and progress in its services segment and the iPhone, implying that the expected launch of the iPhone 15 could take place in September.

 

 

Meta Platforms Inc. (META)

 

Meta Platforms reported earnings of $2.98 per share, beating expectations of $2.92 per share. Meta also beat on revenues, reporting $32 billion and exceeding expectations of $31.12 billion. Furthermore, the company reported a 12% growth in ad revenue, outpacing even Google's ad revenue growth of 3%.

 

Mark Zuckerberg, CEO of Meta, expressed his excitement regarding the company’s future outlook, emphasizing strong user engagement observed across their various applications. The company’s upcoming plans encompass the launch of Llama 2, Threads, and Reels, as well as new AI products and the debut of Quest 3, which is scheduled for the fall season.

 

 

Microsoft Corp. (MSFT)

 

Microsoft Corp. (MSFT) surpassed expectations with earnings per share of $2.69, outperforming the projected $2.54 per share. Additionally, the company achieved revenue of $56.2 billion, beating expectations of $55.4 billion.

 

Microsoft Inc. aims to enhance its revenue performance by incorporating significant titles from major game developers like Activision Blizzard, Ubisoft Entertainment, and Electronics Arts.

 

 

Amazon Inc. (AMZN)

 

Amazon Inc. (AMZN) exceeded earnings expectations, reporting a value of $0.65, surpassing the anticipated $0.35. Revenue grew $134.4 billion from an expected $131.4 billion. Furthermore, Amazon’s Web Services (AWS) revenue also saw a 12% YoY increase reaching $22.1 billion.

 

CEO Andy Jassy stated that artificial intelligence is central to the company’s future strategies. Moreover, Jassy highlighted that multiple AI initiatives are actively underway in every business sector of Amazon.

 

 

 

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