Tech giants' earnings surge in. Will the strong uptrend continue?

Summary：AI's rise has tech firms in focus, with volatile stocks. Post-tonight, seven giants release financials. It's uncertain if their shares will keep momentum.

This week, the financial reports of four tech giants among the American stock market will be announced sequentially, including Tesla, META Group, Microsoft, and Alphabet, Google's parent company. The remaining three will announce their reports at the end of April and the first half of May.

Tesla is the highest profile among them, with its financial report being released tonight. As the earliest to announce, Tesla's performance is also the poorest. According to data released at the beginning of this month, both production and delivery volumes have seen a significant year-over-year decline, especially in delivery volumes, which dropped more than 20% quarter-over-quarter, marking the largest shortfall recorded.

Such explosive performance will inevitably lead to a decline in Tesla's revenue. Analysts predict that Tesla's revenue for the first quarter will decrease by up to 5%, marking the first year-over-year decline in revenue since the pandemic in 2020.

Following Tesla is Facebook's parent company, META, which will announce its first-quarter financial report early Thursday morning. According to forecasts, their revenue for the first quarter of this year will grow by 26%, and the net profit will be twice that of the same period last year.

Microsoft will announce its financial report the day after META. Although Microsoft's growth is not as strong as META's, it is still projected to increase, with revenue and profit for the first quarter expected to grow by more than 15% according to forecasts.

Google's parent company, Alphabet, will announce its financial report on the same day as Microsoft. Google's performance in the current AI boom is not outstanding, but its solid business line has still provided the company with considerable growth. Its revenue for the first quarter is expected to grow by nearly 14%, with net profit growth exceeding 30%.

The remaining three companies will announce their financial reports sequentially, with Amazon announcing at the end of April, and Apple and Nvidia in early and mid-May, respectively.

UBS released a report on Monday of this week, discussing these tech stocks. They are not very optimistic about the bullish trends of these companies, believing that such hot trends are unsustainable and currently facing cooling risks, thereby downgrading the stock ratings of six tech giants, except Tesla, from "overweight" to "neutral".

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Written byTraderKnows

Created date:2024-04-23 09:58

Last Updated:2024-04-23 10:04

Independent Analysis: Manually researched and fact-checked by the TraderKnows Compliance Team, based on public regulatory records.

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Technology stocks

Technology stocks refer to the shares of companies engaged in research and development, production, and sales within the technology industry. These companies are primarily involved in information technology, telecommunications, semiconductors, software development, and other sectors. Their shares are often considered to have higher growth potential and risk.