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Good Morning!
It's Friday! Let’s review these tech earnings:
👉 Meta declares dividend
👉 Amazon beats earnings
👉 Apple performs poorly in China
AMAZON: Beats The Street
Amazon surpassed Wall Street expectations in its fourth-quarter earnings and projected strong sales for the next quarter, causing a stock increase of over 8% after hours on Thursday. The company anticipates first-quarter revenues of $138 billion to $143.5 billion, outpacing analyst expectations. Net income soared to $10.6 billion from $278 million the previous year, reflecting successful cost-reduction efforts by CEO Andy Jassy. Amid workforce reductions and scaling back on speculative ventures, Amazon continues to streamline its operations, including cuts in various units like Prime Video and Twitch.
Source: Reuters
CFO Brian Olsavsky highlighted a cautious approach to new investments, with no specific focus on efficiency for 2024. Fourth-quarter revenue grew 14% to $170 billion, boosted by a robust holiday season and Prime Day sales. Amazon Web Services (AWS) sales increased by 13% to $24.2 billion, despite a slowdown in growth compared to previous years. Interest in AWS's generative AI products, including a new AI chatbot named "Q," remains strong.
Amazon also introduced Rufus, a generative AI shopping assistant, and reported a 27% growth in its advertising unit to $14.7 billion, benefiting from new ad placements on Prime Video. Despite increased advertiser interest, Amazon plans to keep ad volumes low.
APPLE: Fails In China
Apple beat first-quarter revenue and earnings expectations but faced a 13% sales decline in China, a key market, causing shares to drop over 4% in after-hours trading due to concerns over iPhone sales. No specific guidance was provided for the current quarter, but CFO Luca Maestri suggested iPhone sales would align with last year's $51.33 billion, adjusting for a $5 billion increase from previous supply recovery.
Source: Yahoo
Overall, revenue is expected to match last year's $94.84 billion, with services growth at 11%. Despite breaking a trend of revenue declines with a 2% increase in the December quarter, iPhone sales slightly missed expectations, growing nearly 6% to $69.70 billion. The services business rose 11% to $23.11 billion but fell short of estimates. Apple reported an increase in active devices to 2.2 billion, up from 2 billion last year.
Headlines You Need To Know: 🎙
Your Favorite Brand Used To Be What?
You will never believe why one of your favorite companies was actually founded...When you think of innovation, you think of Elon Musk, Steve Jobs, and Bill Gates.
But in 1850, three innovators created a company that would focus on the express mail service, which would use horses to create a network to move information and goods across the nation. At the time, this was a WILD concept. If you needed to send a shipment out West, the only company that people trusted was American Express.
Source: The Brand Hopper
A few years later, in 1882, American Express created money orders and traveler checks, which forever changed how people in America traveled.
It wasn't until 1958, when American Express created their premium credit card, that they are known for today. Even in 1958, American Express was known for the same prestige and premium service that they offer today.
Today, the company is worth over $200 billion and is one of Warren Buffett's favorite companies that he owns.
Chart of the Day
📊 The World’s Millionaire Population
Source: Visual Capitalist
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
Source: @wallstreetoasis
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