Apple, Amazon, Meta, Oil, Currency Report Earnings, Things to Know Before The Stock Market Opens
Feb 1, 2024
This upcoming week is expected to be hectic as the Federal Reserve announces its latest decision on interest rates, the government reveals its monthly jobs report, and various major tech, pharmaceutical, and energy firms disclose their earnings.
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Although it is anticipated that policymakers will maintain their key interest rate on Wednesday, investors will attentively listen to remarks from Fed Chair Jerome Powell for indications about the future direction of interest rates.
In after-hours trading on Thursday, Meta and Amazon.com saw significant increases in their shares. Meta displayed confidence in its future performance and announced its first dividend. Amazon exceeded expectations with its earnings due to strong results in its e-commerce business and advertising growth.
On the other hand, Apple's shares are declining despite beating expectations with its earnings. The slower growth of Apple's services business in the quarter was disappointing, and there is also concern about a 13% decrease in sales in Greater China.
Earlier in the week, Alphabet and Microsoft also released updates on their earnings, both surpassing expectations. However, investors still reacted by lowering the stocks' values.
Investors are currently reacting to the information that the Federal Reserve is not expected to reduce interest rates in March. Furthermore, they are eagerly anticipating the release of significant earnings reports from major technology companies. Although strong financial results are expected, there is a possibility that investors who have been driving the tech sector's upward trend may be disappointed if these numbers do not meet the high expectations set by the excitement around artificial intelligence (AI). Key companies reporting their earnings after the market closes include Apple (AAPL), Amazon (AMZN), and Meta Platforms (META), the parent company of Facebook. Here is the essential information that investors should be aware of today.
Meta Earnings
On February 1st, Meta Platforms disclosed its inaugural dividend of $0.50 per share. Despite allocating substantial funds towards the development of AI infrastructure, the company is simultaneously returning capital to its shareholders.
Meta Platforms (META) is expected to report impressive fourth-quarter results today, showing significant growth in both revenue and profits compared to the previous year. Analysts predict that strong advertising efforts and the integration of artificial intelligence (AI) into its streamlined operations will contribute to a diluted EPS of $4.90 and a 21% increase in revenue compared to the same period last year. In addition to its AI strategies, investors will also be keeping a close eye on Meta's ability to attract and retain a large user base across Facebook, Instagram, Messenger, and WhatsApp, as this is crucial for advertisers to remain engaged.
Apple Inc Earnings
Tech giant Apple Inc. (AAPL) is anticipated to announce its strongest quarterly revenue growth in a year and its highest earnings in two years, mainly driven by increasing iPhone revenue and services sales. Analysts predict that the net income for the first quarter of fiscal year 2024 will be the highest since the same period in fiscal year 2022. Key points of interest for investors include the performance of the iPhone 15, especially as consumers are not upgrading as quickly as in the past, Apple's ability to maintain its dominance in the competitive Chinese market, and any advancements in artificial intelligence initiatives.
Amazon.com Inc Earnings
Amazon.com Inc. (AMZN) is anticipated to announce its highest ever Q4 revenue, along with substantial profit growth. Investors will pay close attention to the net sales at Amazon Web Services, as it serves as an indicator of the company's ability to capitalize on the increased demand for artificial intelligence. This report will cover the crucial Christmas holiday season.
Currency Report
Ong proceeds to analyze the relationship between the US dollar and the euro and Japanese yen. She indicates that the US dollar experienced an increase in value relative to the euro, whereas it faced a decline against the Japanese yen. The reason behind this occurrence can be attributed to Jerome Powell, the head of the Federal Reserve, who made a statement suggesting that a rate reduction in March was improbable. Consequently, this statement contributed to a decrease in the market's anticipation of a rate cut.
Oil Report
In terms of the recent developments in the oil market, it is worth noting the upcoming earnings reports of Chevron and ExxonMobil, two prominent companies in the industry. These reports are anticipated to reveal a decline in revenues for both entities. However, it is noteworthy that European oil firms such as Shell are experiencing positive results, as exemplified by Shell's recent announcement of a $28 billion annual profit.
