The Q4 2023 Earnings Season has concluded, with the "Magnificent Seven" stocks having captured significant attention for their performance.

This article consolidates their earnings data, examines the post-earnings stock price movements, and offers insights into various industry trends.

*The Magnificent Seven" stocks, as they have come to be known, are a group of historically high-performing and influential companies in the U.S. stock market: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla.

*It is worth noting that for some companies, the fiscal year and the calendar year may differ. The following financial statement refers to the company's performance in the fourth quarter of the calendar year of 2023.

Microsoft earnings report: AI boosts revenue

Q2 FY2024 Results (Announced on January 3, 2024)

• Revenue: $62.02 billion, +17.58% year-over-year

• Earnings per share: $2.93, +33.18% year-over-year

• Earnings-Related Price Changes：-2.69%

Riding the wave of the AI boom, Microsoft overtook Apple as the world's top-valued company at the start of 2024.

Despite an initial 2.67% dip in stock value post-earnings on January 30th, Microsoft swiftly bounced back within two trading sessions, holding onto its premier valuation status.

The earnings report highlighted how AI has bolstered Microsoft's cloud sector, with Intelligent Cloud revenue hitting $25.8 billion, marking a 20% increase from the previous year. Azure, the company's leading cloud service, experienced a robust 30% revenue surge year-over-year.

Executives pointed out that AI contributed 6 percentage points to Azure's second-quarter growth, a notable jump from the contribution in the first quarter.

Additionally, Microsoft is branching out its AI influence into software sales, incorporating AI features into Microsoft 365 at a subscription rate of $30 per month. While uptake figures for this new package remain under wraps, management hints at its nascent stage, suggesting the potential for a promising revenue trajectory ahead.

*Source: CNBC, Tipranks. Earnings-Related Price Changes are the percentage stock price changes from close the day before earnings to close the day after earnings.

Apple earnings report: revenue rebounds

Q1 FY2024 Results (Released on February 1, 2024)

• Revenue: $119.58 billion, +2.07% year-over-year

• Earnings per share: $2.18, +15.96% year-over-year

• Earnings-Related Price Changes：-0.54%

Apple's latest earnings report shows stability.

Despite a slight decline in Apple's stock price following the release of the report on February 1st, the company showed positive signs with a year-over-year revenue increase of 2.07% and a 15.96% rise in earnings per share.

The report points to a possible resurgence in smartphone demand. According to IDC's report, smartphone sales saw a 5% year-over-year increase in October 2023, marking the first positive growth after 27 months of decline. But we're not sure if this means the bad times for smartphones are over.

In the long run, Apple still faces the challenge of sluggish growth. There is a lingering concern about Apple's future growth prospects, especially in the context of the current AI trend, where Apple has not introduced a major new product to generate significant enthusiasm. However, investors are hopeful about Vision Pro, a new product they just launched. Given its high price, the specific sales figures and the revenue it can bring to Apple remain to be seen, necessitating ongoing observation.

*Source: CNBC, Tipranks. Earnings-Related Price Changes are the percentage stock price changes from close the day before earnings to close the day after earnings.

Amazon earnings report: efficiency enhancement efforts boost profits

Q4 2023 Results (Announced on February 1, 2024)

• Revenue: $169.96 billion, +13.91% year-over-year

• Earnings per share: $1.00, +3233.33% year-over-year

• Earnings-Related Price Changes：+7.87%

Following the release of its financial report on February 1st, Amazon's stock saw a substantial increase, climbing by 7.87% and securing its position as the third top performer among the leading tech giants.

The highlight of Amazon's earnings report lies in the continued effectiveness of its cost reduction and efficiency improvement initiatives. From late 2022 to mid-2023, the company downsized its workforce by 27,000 and cut back on logistics and streaming expenses, which led to a dramatic surge in net profit, reaching $10.6 billion for the fourth quarter. Earnings per share reached $1.00, compared to a mere $0.03 in the same period last year, representing an extraordinary increase of 3,233%.

Looking forward, Amazon has projected a positive revenue forecast for the first quarter of 2024, estimating revenues to be between $138.0 billion and $143.5 billion. This range slightly exceeds the analysts' projection of $142.1 billion, reflecting the company's optimistic expectations for continued financial growth.

*Source: CNBC, Tipranks. Earnings-Related Price Changes are the percentage stock price changes from close the day before earnings to close the day after earnings.

Alphabet earnings report: advertising fell short of expectations

Q4 FY2024 Results (Announced on January 30, 2024)

• Revenue: $86.31 billion, +13.49% year-over-year

• Earnings per share: $1.64, +56.19% year-over-year

• Earnings-Related Price Changes：-7.35%

Alphabet, the parent company of Google, let the market down with its latest financial results. After the report came out on February 1st, its shares dropped by 7.35%.

Despite beating expectations for overall revenue and earnings and posting the quickest revenue increase since early 2022, Alphabet fell short in its key ad business. The $655.2 billion in ad revenue didn't hit the forecasted $659.4 billion, signaling worries about the competitive ad landscape.

Both Google and Meta depend on ad sales, yet this quarter Meta's ad business grew more rapidly, highlighting Google's ad struggles. With the rise of short video content on platforms like Instagram and TikTok, Google faces fresh hurdles. Its future stock trajectory may hinge on how well it maintains its ad revenue base.

*Source: CNBC, Tipranks. Earnings-Related Price Changes are the percentage stock price changes from close the day before earnings to close the day after earnings.

Meta earnings report: boosting shareholder returns

Q4 2023 Results (Announced on February 1, 2024)

• Revenue: $40.11 billion, +24.70% year-over-year

• Earnings per share: $5.33, +202.84% year-over-year

• Earnings-Related Price Changes：+20.32%

Meta's shares soared 20% following its earnings report on February 1st, outshining its industry counterparts.

The company witnessed a 24.7% revenue increase in Q4 year-over-year, marking the most significant growth since Q3 2021. By slashing expenses, Meta boosted its operating margin to 41% and its net profit skyrocketed by 201% to $14 billion.

The results reflect Meta's effective cost management, highlighted by its reduced employee count to 67,000, a 22% cut from the year before.

Notably, Meta announced shareholder rewards, including a dividend of $.50 per share and a $50 billion stock repurchase program.

*Source: CNBC, Tipranks. Earnings-Related Price Changes are the percentage stock price changes from close the day before earnings to close the day after earnings.

Tesla earnings report: will 2024 be a lackluster year?

Q4 2023 Results (Released on January 24, 2024)

• Revenue: $25.17 billion, up 3.49% year-over-year

• Earnings per share: $2.27, up 112.15% year-over-year

• Earnings-Related Price Changes：-12.13%

After reporting earnings on January 24th, Tesla shares tumbled by 12.9%, making it the laggard among the tech behemoths.

Tesla's Q4 revenue saw a meager 3.49% year-over-year increase. Despite a 112% surge in earnings per share, bolstered by one-time tax benefits, the underlying earnings actually fell 39% from the previous year, missing analyst expectations.

Investors were particularly unnerved by Tesla's bleak forecast for 2024, with the company signaling a production and delivery growth slowdown and withholding its delivery projections for the year.

Further dampening sentiment is the possibility that Tesla might not launch new models in 2024, coupled with the production challenges for the Cybertruck and the stagnant development of its self-driving technology. Heading into 2024, Tesla appears to be short on the kind of compelling narratives that typically draw investors.

*Source: CNBC, Tipranks. Earnings-Related Price Changes are the percentage stock price changes from close the day before earnings to close the day after earnings.

Nividia earnings - revenue up 265% on booming AI business

Q4 FY2024 Earnings (Announced on February 21, 2024)

• Revenue: $22.103 billion, up 265.28% year-over-year

• Earnings per share: $4.93, up 764.91% year-over-year

• Earnings-Related Price Changes：+16.4%

NVIDIA announced its performance on February 21, with its stock surging nearly 10% after-hours following the January 24 announcement.

Fueled by its AI chip business, NVIDIA's performance continued its rapid growth, with Q4 revenue hitting $22.103 billion, a remarkable 265.28% increase from the previous year. Net profit reached $12.29 billion, compared to just $1.41 billion in the same period last year.

NVIDIA's robust performance is largely attributed to the strong demand for AI computing chips. As AI penetrates various industries, the demand for AI computing power continues to rise.

However, investors are concerned about whether NVIDIA's rapid growth can be sustained. CEO Jensen Huang addressed some of these concerns during the earnings call, expressing optimism about the growth prospects for fiscal year 2025 and beyond.

*Source: moomoo, CNBC, Tipranks. Earnings-Related Price Changes are the percentage stock price changes from close the day before earnings to close the day after earnings.

Summary

Here's a summary after the earnings season, providing a clearer picture of the conditions of the seven giants:

• Microsoft and NVIDIA are riding the wave of AI, experiencing a second growth curve.

• Meta and Amazon have unlocked substantial profits by cutting costs and boosting efficiency.

• Google's overall business looks decent, but lower-than-expected ad revenue appears to have investors worried about intensifying competition.

• Tesla not only faces increased competition in the electric vehicle industry but is also expected to experience a period of product vacuum in 2024.

Additional disclaimer:

This content is not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. All company analysis information is provided by third parties and is not compiled by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for illustrative purposes.