Overview of published MAG7 reports
Last week some of the world's largest technology companies released their latest figures. Microsoft, Meta, Alphabet, Apple, and Amazon released their reports high expectations, with investors looking primarily for direction in the artificial intelligence and cloud services markets. While the figures were mostly strong, market reactions showed that heavy investments and tightening expectations now go hand in hand.
Microsoft
The company's revenue grew clearly more than expected, and cloud services and artificial intelligence applications in particular boosted the overall performance. Demand for Azure services remained strong, and artificial intelligence solutions are already a significant part of the growth. However, investors were cautious about the company's announcement of large data center investments of over $30 billion, which indicate ambition but also rising costs. Microsoft’s message to the market was clear: artificial intelligence is now the company's most important growth engine. Microsoft's stock fell about 6% after the results.
MSFT (USD), one-year chart
MSFT (USD), five-year chart
Meta
Meta surprised investors with mixed results. Although the advertising business grew steadily and the company introduced new generative AI solutions, the market reacted strongly to the company's decision to increase its AI investments. The share price fell sharply, reflecting investors' uncertainty about the return on their investments. For Meta, the question is no longer whether the company will grow, but how long it can continue to grow without costs starting to weigh on the bottom line. The share price fell by about 10% in the aftermarket after the results. The price also fell below the 200-day Simple Moving Average (SMA200) on the daily chart.
META (USD), one-year chart
META (USD), five-year chart
Alphabet
Alphabet continued its steady, strong performance. Google search and YouTube advertising results exceeded analysts' expectations, and Google Cloud also showed a clear recovery. The company has managed to effectively utilize artificial intelligence in both search algorithms and advertising targeting, which has increased its competitiveness. Alphabet did not make any major strategic departures, but its stability and continuous development created the market impression of a reliable, long-term technology player. Following the results, the share price rose by over 7%, and at the same time the share reached new ATH (All Time High) readings.
GOOG (USD), one-year chart
GOOG (USD), five-year chart
Apple
Apple reported modest but steady earnings growth, with strong performance from iPhone sales and services. Despite facing new challenges in the Chinese market, the company managed to maintain its margins and is forecasting a strong Christmas quarter. New products and a growing focus on artificial intelligence features, especially in upcoming iOS and device updates, show that Apple is striving not only to maintain its position as a device manufacturer, but also as an innovator in its ecosystem. Apple's initial reaction to the results was negative, and the price fell by about 4% in the first minutes but ended up over 4% in the aftermarket after the results were announced, also setting new ATH (All Time high) readings.
AAPL (USD), one-year chart
AAPL (USD), five-year chart
Amazon
Amazon's third-quarter report confirmed the company's position at the intersection of e-commerce and cloud services. The AWS segment continued to grow, but at a slightly slower pace than in previous years, reflecting the increasing competition in the cloud market. On the other hand, the consumer business and improved logistics supported the result. Amazon is now investing heavily in artificial intelligence both internally and in its customer service, but the market will be closely watching how these investments will be reflected in profitability in the coming years. Following the results, Amazon rose almost 15% after the results, setting new ATH (All Time High) readings.
AMAZON (USD), one-year chart
AMAZON (USD), five-year chart
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This information is in the sole responsibility of the guest author and does not necessarily represent the opinion of Bank Vontobel Europe AG or any other company of the Vontobel Group. The further development of the index or a company as well as its share price depends on a large number of company-, group- and sector-specific as well as economic factors. When forming his investment decision, each investor must take into account the risk of price losses. Please note that investing in these products will not generate ongoing income.
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