Meta stock is now more than 16% higher in premarket trade following a bumper earnings report.
Over the last four quarters Mark Zuckerberg’s behemoth has beat EPS by some margin. In September, it was 82.4% higher than expected. December saw a beat of more than 7%.
Fourth quarter earnings were $40.1bn, beating the predicted $39.18bn 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 remains one of Meta’s main investment areas in 2024, with the company increasing its capex by $2bn in this area.
The company also announced it will pay a 50 cent-per-share dividend to investors for the first time, and has authorised a $50bn share buyback programme. This will net CEO Zuckerberg around $700m.
Amazon (AMZN)
Amazon reported fourth quarter earnings that beat analysts’ expectations on Thursday and delivered an optimistic outlook for the months ahead, Yahoo Finance US reported on Thursday night.
Net sales came in at nearly $170bn versus expectations of $166.2bn. That’s 14% higher than the almost $150bn the company generated during the same period in the prior year. The outlook for the current quarter also surpassed forecasts, with the company estimating an upper range of $143.5bn.
“This Q4 was a record-breaking Holiday shopping season and closed out a robust 2023 for Amazon,” said CEO Andy Jassy in the earnings release.
Amazon’s muscular earnings report and subsequent investor response followed more critical receptions to some of its Big Tech siblings, which also largely beat estimates.
Apple revenues beat forecasts for Q1, coming in at $119.6bn, led by the iPhone which saw revenue of $69.7bn.
Apple’s results were, however, marred last quarter by regional revenue from China, Greater China revenue came in well short of forecasts at $20.8bn, indicating that the squeeze on sales is starting to have an effect.
Apple management seems concerned that’s going to continue, as this quarter is expected to be similar to last year.
Elsewhere in the business, iPad revenues hit $7bn, Mac revenues were at $7.8bn, and wearables hit $12bn, falling slightly short of forecasts. Services were also short of forecast at $23.1bn.
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“The next few months are likely to be challenging for Apple having to deal with regulatory issues in Europe over its App Store, while its Watch has been the subject of issues with respect to its blood oxygen feature,” said Michael Hewson of CMC Markets.
“The launch of the Vision Pro at $3,500 is unlikely to shift the dial when it comes to sales given how costly it is. Apple is launching some new iPads which may prompt an uptick in sales in this area over the next quarter, but the iPhone remains its key revenue earner so the slowdown in China will be a concern, however the Indian market could offer a way out on this front.”
Stock is down around 2.8% in premarket trade.
Peloton (PTON)
Shares of Peloton Interactive fell more than 20% by the end of the day on Thursday, dropping to a record low as the fitness company reported mixed second-quarter results and its third-quarter revenue guidance of $700m to $725m fell short of expectations.
It also warned on missing future goals for positive free cash flow, as some of its initiatives underperform.
Watch: Amazon beats forecasts with help from AI
