Applied Materials (AMAT) Pre-earnings Analysis Chart done on daily timeframe. Stocks involved in the semiconductor sector have grown in valuation to astronomical numbers in the last 12 months. The two most prominent names to mention are Nvidia and AMD, both of which have reached new all time highs recently, but their price to earnings ratios are far above the “healthy” 15-25 average. The recent rally from Nvidia and AMD has lifted their price to earnings ratio to 90x and 320x (in that order), making them very expensive compared to the average. The continued optimism around artificial intelligence is the catalyst behind the exponential growth we’ve seen in semiconductor companies, but many semiconductor stocks may have grown too expensive in valuation....
AliBaba (BABA) Post-earnings Analysis Chart done on hourly timeframe. Shares of the Chinese conglomerate AliBaba are pulling back after the company’s latest earnings report. Their numbers are a clear reflection of the Chinese economy’s struggle in recent years, which weighed on both e-commerce and cloud computing. The last 12 months have already been difficult for AliBaba’s stock as relations between the U.S. and China remain tense, so the miss on revenue projections this quarter sent a chilling message to BABA investors. The company did try to salvage the bad news by announcing a massive $25B stock buyback, which brings their buyback expectations to be worth about 20% of the company’s current valuation. Stock buybacks are effective in raising the stock’s...
SNOW Snowflake is set to report its quarterly earnings later this month on February 28th. Analysts are optimistic about revenue growth, but are still expecting a negative number when it comes to their earnings per share. Despite the company’s ability to grow revenue from under 100M in 2018 to over 2B last year, they haven’t been able to move closer to profitability, which is concerning for a service based tech company. With a 70B dollar valuation, Snowflake will have to show to exponential growth to be fairly valued. Growth must come first and foremost from revenue, but more importantly, they need to establish a path to profitability for their investors. Their revenue needs to grow close to 7B on an...
AMZN Pre-earnings Analysis Chart done on hourly timeframe. Amazon investors are finally seemingly excited about the stock again as it attempts to push higher into its 52 week highs, but compared to the rest of tech stocks, the company is lagging behind. Amazon’s inability to move to all time highs like many other tech stocks could be attributed to their expensive price to earnings ratio. Looking back at their earnings since early 2022, we see their net income has always struggled, but it improved in recent quarters thanks to their AWS cloud revenue. Q1 of 2022 reflected a loss of $3.84B, but since then, Amazon has managed to grow into profitable territory, reporting a positive $9.88B in net income last...
MSFT Pre-earnings Analysis Chart done on hourly timeframe. We’re less than a month into 2024 and Microsoft has already challenged Apple to be the most valuable company in the world. The new accomplishment is well deserved considering Microsoft’s stellar history and performance, but it will be tested this week as they report quarterly earnings. Expectations are high from the company because of their involvement in artificial intelligence and OpenAI. With demand for generative AI soaring, Microsoft is considered a top leader so they’re expected to reap the benefits. Net income is expected to come in at $20.6B ($2.77 per share), compared to $17.4B ($2.20) same quarter last year. Revenue is also expected to grow 16% YoY. Despite the aggressive projections,...
