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💪 Big Tech Flexes Earnings

GM Money Masters, 👋

This week has been fast and furious. We had the FOMC meeting mid-week, and several top tech companies have released their Q4 earning.

Our financial overlord Jerome Powell just poured cold water on expectations that we will be seeing rate cuts anytime soon. The Fed is still gunning for the 2% inflation rate and advised that we have to contend with the high 5.25-5.5% interest rates for longer. Bummer.

With the bad news, the charts predictively went negative. Thankfully, we have heroes in the Magnificent Seven. Positive earnings were enough to prop up the market. The question is if the euphoria is enough to tide us by until the Fed decides to finally slash the rates.

Let’s get started. 🤸

MONEY MASTERY BRIEF

  • 💰 Meta, Apple, and Amazon Earnings Beat Expectations
  • 🚙 GM and Honda Double Down on Hydrogen Cars
  • 🧲 Anti-Gravity Mystery Solved

💰 Meta, Apple, and Amazon Earnings Beat Expectations

Are you interested in learning how much your favorite tech giants earned in the last quarter of 2023? These 3 companies are now rolling in dough.

1️⃣ Meta

Mark Zuckerberg is probably grinning from ear to ear right now. His social media company Meta has released a spectacular 2023 4th quarter earnings report that beat all expectations. The tech giant reported a whopping $40.11 billion in revenue, which is more than the expected $39.01 billion. This also surpassed the $32.2 billion earned in the same quarter in 2022. The adjusted earnings per share (EPS) is now at $5.33 – a 200% increase from the same period last year and is a big leap from the expected $4.94.

Shares of the company skyrocketed more than 12% following the report.

And if you think Meta is done surprising us, then think again. The company is projecting up to $37 billion in revenues in the first quarter of 2024, which is a few billion higher than analysts’ expectations of $33.6 billion.

And wait, there’s more… Zuckerberg’s company has also announced its first-ever cash dividend. Stakeholders will receive $0.50 per share, and it will be given on March 26.

We do hope that you hold some Meta (NASDAQ: META) stocks. The social media giant is already earning from your Facebook and Instagram usage, so you might as well get a piece of the profit.

2️⃣ Amazon

Consumers have really bought a lot during the holiday season. Online commerce giant Amazon has recorded $169.9 billion in revenue. The staggering figure surpassed analysts’ projections of $166.2 billion. It is also bigger than the $149.2 billion earned in Q4 of 2022. The adjusted earnings per share is now at $1 versus the expected $0.78.

The report also highlights that the Amazon Web Service (AWS), the cloud computing division of the tech giant, is quickly becoming a money maker. It has reported $24.2 billion in sales, a 13% increase year-over-year.

Amazon expects to earn another $138 billion to $143.5 billion for the first quarter of 2024.

If you are thinking of getting some Amazon (NASDAQ: AMZN) stocks, then you might want to check our team’s analysis 👉 here.

3️⃣ Apple

And of course, how can we forget Apple? The iPhone maker has released its 1st quarter earnings of 2024. OK, that is not a typo… it is really 1st quarter of 2024. This is because Apple does not use the calendar year, and it starts its fiscal year in October and ends in September. Now, that that’s clarified, let us take a peek at how much the company earned.

Apple reported $119.6 billion in revenue, which is good since its four-quarter-long losing streak has been broken. Its earnings per share is now at $2.18. This good news is partly due to the strong performance of its services businesses which include iTunes, Apple Music, Apple Pay, and iCloud.

Shareholders can expect to receive a cash dividend of 24 cents per share on February 15.

However, it is not all peaches and cream. Apple (NASDAQ: AAPL) is facing some headwinds despite the positive earnings report. Its performance in the Chinese market is putting a damper on the good news. Sales in China missed the target of $23.5 billion, which is about $3 billion less than expected. Local competitors, like Huawei, are giving the US tech company a good fight for market share.

Should you dump AAPL shares? Check out our analysis 👉 here and decide for yourself.

🚙 GM and Honda Double Down on Hydrogen Cars

What is not to love with EVs? We now have an option to go wherever we want without feeling guilty about our carbon footprint. However, the Tesla EV we know might have serious competition in the future. General Motors (NYSE: GM) and Honda (NYSE: HMC) have joined forces to give us an alternative.

The two car makers have been collaborating in creating hydrogen fuel cells since 2017 with the establishment of Fuel Cell Systems Manufacturing LLC. After several years their effort is at last bearing fruit. They have just recently started the mass production of hydrogen fuel-cell modules in their Michigan factory. The new power plant is about the size of a normal four-cylinder engine and is capable of generating 77 kilowatts or about 103 horsepower.

This new technology will power the new hydrogen-powered Honda CRV which is expected to make its debut in March 2024.

Aside from powering cars, the new technology can also be used for power generators, heavy-duty trucks, and construction equipment. Basically, it is the green reincarnation of the traditional internal combustion engine. Hopefully, it should also stop activists from destroying priceless artworks.

So should Tesla and other EV makers worry? It might be too early for them to panic since it takes a while before any type of technology goes mainstream, However, it does give us another eco-friendly option. And as a bonus, having a car that is powered by the same fuel as rocket ships sounds badass.

🧲 Anti-Gravity Mystery Solved

The idea of anti-gravity and levitation is often featured in sci-fi shows. The Marvel character Doctor Strange has his Cloak of Levitation, while wizards from Harry Potter just need to cast the spell “Wingardium Leviosa” to levitate any object. If you think you need this in your life (we don’t judge), then this news will make you happy. Scientists from the Technical University of Denmark have just solved an anti-gravity mystery and at the same time confirmed a new form of magnetic levitation.

Science class taught us that magnets either attract or repel each other. But in this experiment, scientists have found out that if you spin a magnet very fast, you can make another magnet hover above it, without falling or flying away. This is surprising since this does not conform to physics as we know it.

Further research using computer models revealed that spinning magnets create a special magnetic field that balances the other magnets like a spinning top. And we all thought it was magic. 🧙

Can you imagine its applications in transportation, energy, and other fields?

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“…We will continue to invest in these and other technologies that will shape the future, that includes artificial intelligence where we continue to spend a tremendous amount of time and effort…”

– Tim Cook, Apple CEO

$50 billion. Meta has announced a $50 billion share buyback. This buyback covers about 5% of all company outstanding shares at the current market capitalization of $1 trillion.

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Apple (NASDAQ: APPL) might be late to the party, but its CEO Tim Cook hinted at a possible AI announcement later this year. He talked about it during a call with analysts after the company reported its first-quarter earnings. He did not disclose a lot of details but the company will compete with other tech giants like Microsoft and Google. Full story

Tesla (NASDAQ: TSLA). Elon Musk said that the tech company will hold a shareholder vote to change its state of incorporation from Delaware to Texas after a judge canceled his $56 billion pay package. The billionaire even posted on warning on X saying, “Never incorporate your company in the state of Delaware”. Full story

Nvidia (NASDAQ: NVDA) has set a new record-breaking price surge. The chipmaker registered its biggest monthly increase so far. Its market value has increased by more than $296 billion, surpassing its $248.23 billion gain in May 2023. Nvidia’s current market cap is $1.52 trillion. The increased value is largely due to the optimism surrounding AI. Full story

Walt Disney’s (NYSE: DIS) Hulu is cracking down on password sharing. The streaming company revised its terms of service to explicitly ban password sharing outside of the subscriber’s “primary personal residence”. Disney CEO Bob Iger revealed in the past that he wants to follow Netflix’s example. Better tell your ex. Full story

Google (NASDAQ: GOOGL) maps just leveled up. The tech company is experimenting with using AI large language model (LLM) to enhance user experience. The AI model will give suggestions based on analysis of reviews, ratings, photos, and other information. Full story

BlackRock’s iShares has this infographic that shows how much lithium is needed by 2050. That is honestly a lot.

According to the International Energy Agency, we could be facing a lithium shortage by 2025. The problem is lithium is one of the key components for batteries that power EVs and a lot of our gadgets, including our smartphones.

We have a lot of lithium on Earth but only 24% of the supply is economically viable to be mined. Fortunately, companies are looking at other options. Hydrogen power is one of them. With the GM-Honda collaboration, we should be able to see hydrogen-powered cars on our streets soon. I don’t know about you guys, but having a hydrogen-powered machine sounds sexier than driving an EV.

Are you going to choose Hydrogen Cars over EVs?

Let us know by replying YES or NO to this email.

Thanks for reading, and may your investments thrive. 🙂

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