Tesla
Tesla stocks fell more than 12% after releasing their last quarterly earnings report for 2023. The stock is now trading at its lowest price since May 2023 and is 39% lower than 2023’s highs.
The downward price movement has been triggered by the lower earnings and revenue. The company’s earnings per share were lower than expectations for the second consecutive quarter and revenue read 3% lower than expectations. The company’s earnings per share fell almost 40% compared to the previous year, but a positive figure continues to be the growth in deliveries. Tesla reported a sizeable 38% increase in deliveries last year compared to the previous year.
Another negative factor for the world’s most valuable car marker is the rise in Chinese electrical car manufacturers. The company has been cutting prices in order to increase sales, which it has, but this has impacted profitability. However, even with the price cuts, China’s BYD Auto sold more cars than Tesla in the last 3 quarters of 2023.
Previously Tesla has not had any “serious” competition which is why the company quickly grew as did the stock. However, most analysts have advised a sell for the stock after the latest earnings and increase in Chinese competition such as BYD Auto. On the other hand, if the price does continue to decline, opportunities could arise to purchase at a better entry point. Wealth Management companies have advised a price below $150 could trigger future opportunity.
Visa
Visa stocks fell 3% after the release of the company’s latest quarterly earnings report even though the latest figures beat expectations. The company has managed to beat analysts’ expectations consecutively over the past 4 quarters and revenue continues to rise. The increase in earnings has not sharply risen like other companies but the company’s earnings have been stable as has the stock. The reason for the decline was due to lower activity in the past 3 months issued within the report.
The price of the stock has risen 21% over the past 12 months and has performed better than its main competitor, Mastercard, which has risen 16%. According to analysts, the main concern for Visa will be the deterioration of the “soft landing scenario”.
Procter and Gamble
Procter and Gamble Stock has risen almost 5% this week since the latest earnings report was made public. The company recorded an 8% higher than expected earnings per share, but revenue slightly fell. Procter and Gamble is unique as it is one of the few “defensive” stocks which has seen a significantly higher earnings per share figure. As a defensive stock, the asset may attract individuals who may fear a weakening stock market in 2024-2025. Procter and Gamble stocks have risen 10% over the past 12 months and pay the highest dividend yield amongst the 4 stocks discussed in this article.
Netflix
Netflix stocks have been the best performer this week, rising almost 16% in a short space of time. The main upward drive was the significant increase in subscriptions and the company outperforming its competitors. However, some negatives still remain. The company’s earnings per share were 5% lower than expectations and were 43% lower than the previous quarter. Investors should also note, in terms of earnings, it was the worst in 2023 overall. However, the company revenue rose to its highest point.
Netflix has risen 54% over the past 12 months but it has yet to reach the company’s previous resistance level which was seen in 2021. Technical analysis currently points to an upward price movement, but this can change as the previous point of collapse approaches.
Michalis Efthymiou
Market Analyst
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Unleashing the Exciting Earnings and Stock Performance of January 22-26, 2024
The stock market is a fascinating realm where investors, analysts, and traders come together to drive the performance of stocks. It’s a dynamic ecosystem where companies’ successes, economic conditions, and investors’ sentiments all play a crucial role in stock performance. January 22-26 in 2024 will undoubtedly be a much-awaited and exciting week for stock market enthusiasts, with several key companies reporting their quarterly earnings. In this article, we’ll delve into the top performers of that week, analyze their earnings, and see what the experts have to say about their stock performance.
Tesla Inc. (TSLA)
Tesla is one of the most talked-about companies in the market, not just for its innovative electric vehicles but also for its impressive stock performance. After a successful 2023, where Tesla reported record vehicle deliveries and reached a market capitalization of over $1 trillion, investors and analysts are eagerly waiting for its Q4 earnings report on January 25, 2024.
According to analysts, Tesla’s fourth-quarter revenue is expected to reach $34.5 billion, a significant increase from $19.2 billion in the same period in 2023. The company is expected to benefit from increased demand for its Model 3 and Model Y cars, especially in the Chinese market. If Tesla meets or surpasses these expectations, it could lead to a surge in its stock price and a boost in investor confidence.
Apple Inc. (AAPL)
With its loyal fan base and a string of successful products, Apple is undoubtedly one of the most valuable companies in the world. Its Q1 earnings report on January 26, 2024, will be a key event for investors and technology enthusiasts alike. Apple’s iPhone 16 is expected to hit the market in late 2023, making its first-quarter earnings even more exciting.
According to analysts, Apple’s revenue in the first quarter of 2024 is expected to reach $120.3 billion, a sharp increase from $65.4 billion in the same period in 2023. This surge is mainly attributed to the expected success of the iPhone 16, as well as strong demand for other products such as the Apple Watch and AirPods. If Apple delivers better-than-expected results, it could lead to a jump in its stock price and cement its position as a market leader.
Amazon.com Inc. (AMZN)
Amazon has become synonymous with online shopping, making it one of the most valuable companies in the world. Its fourth-quarter earnings report on January 26, 2024, will be closely watched by investors, especially after the previous quarter saw a significant dip in the company’s stock price.
Analysts expect Amazon to post a revenue of $130.7 billion for the fourth quarter, a slight increase from $109 billion in the same period in 2023. The company’s cloud computing service, Amazon Web Services (AWS), is also expected to contribute significantly to its earnings. A strong performance from AWS, along with an increase in overall sales, could lead to a surge in Amazon’s stock price and reassure investors about the company’s growth potential.
Google Alphabet Inc. (GOOGL)
Google Alphabet Inc. is another tech giant that will be reporting its fourth-quarter earnings on January 26, 2024. After a successful 2023, where Google saw a surge in digital ad revenue and investment in its cloud computing division, investors are optimistic about its next earnings report.
According to analysts, Google’s fourth-quarter revenue is expected to reach $49.4 billion, a significant increase from $46.8 billion in the same period in 2023. Strong performance in its search engine, YouTube, and cloud computing services are expected to drive this revenue growth. If Google beats expectations and continues its growth trajectory, it could lead to a rise in its stock price and reassure investors about its future potential.
Experts’ Perspectives on Stock Performance
While earnings are a primary driver of stock performance, there are other factors that also play a crucial role. Here’s what the experts have to say about the stock performance of the above-mentioned companies in January 22-26, 2024.
– Tesla has been a favorite among retail investors, who place more value on its potential for future growth than its current earnings. According to analysts, the key to Tesla’s stock performance will be its ability to meet or exceed delivery targets and gain market share in the growing electric vehicle market.
– Apple’s stock performance will depend on the success of its new products, particularly the iPhone 16. According to experts, strong sales of the iPhone 16 could drive Apple’s stock price to new highs. However, any delays or issues with the product could lead to a decline in its stock price.
– Amazon’s stock performance will be closely tied to its revenue growth, especially in its cloud computing division. Analysts believe that if AWS shows strong growth, it could give Amazon’s stock a boost. However, any signs of decline in AWS could lead to a drop in the company’s stock price.
– Google’s stock performance will largely depend on the success of its digital ad business. According to experts, any slowdown in this division could negatively impact its stock price. On the other hand, if Google continues to innovate and expand its cloud computing services, it could lead to an increase in its stock price.
In Conclusion
January 22-26, 2024, will be a thrilling week for investors, with some of the biggest names in the market set to report their earnings. While past performance and analysts’ predictions are a good indicator of stock performance, it’s essential to remember that the stock market is volatile, and factors beyond earnings can also impact it. As a responsible investor, it’s crucial to keep up with the latest news, analyze company reports, and seek expert advice before making any investment decisions. With these factors in mind, brace yourself for an exciting week of earnings and stock performance in January 2024.
