NVDA After a phenomenal performance in 2023 so far, the company is setting itself to launch higher into 2024. AMD’s recent earnings foreshadowed what we can expect from leaders in the artificial intelligence space after the company reported a guidance of $2B in AI chip sales for next year. Nvidia is likely to follow the same route with even higher numbers. Last quarter’s revenue doubled, citing exponential demand in AI chips. The company’s revenue has grown their cash reserves to $10B and their asset to liability ratio to 2:1, with 41B in assets. Wall Street is bullish on Nvidia and will remain upbeat as long as AI demand continues to increase. The artificial intelligence market is currently worth around $150B,...
Disney (DIS) Q3 Earnings Analysis Disney shares are rocketing higher after the company’s third quarter earnings topped analyst expectations. The biggest highlight of their earnings was their Disney+ subscriber growth, which came in at 112.6 million, above the 109 million expected. Disney’s struggle since the pandemic was largely become of their losses on Disney+, so subscriber growth in the weakest link is a great sign. The company is also still very focused on cost-reduction, aiming to bring annualized costs down by another $7.5B, which gives hope to investors that they will start dividend distributions once again in the near future. Disney’s interim CFO stated that management will recommend bringing back the dividend before the end of the year, massive news...
UBER Q3 Earnings Analysis Uber shares reached a 52-week high after the company reported their third quarter earnings. According to an article by Wall Street Journal, Uber is the largest company in terms of market cap to not be included in the S&P 500, and this recent earnings makes them eligible for inclusion. This is a massive achievement for any company and it can explain the rise in the stock despite the earnings miss. The company missed on revenue expectations, which came in at $9.29B versus $9.54B expected. Earnings per share on the other hand did beat expectations, coming into at 10 cents a share versus the seven cents expected. Year over year bookings and revenue have grown for the...
ABNB Q3 Earnings Analysis Airbnb reported third quarter earnings recently the company beat on both revenue and profit expectations. Quarterly revenue came in at $3.40B vs the $3.37B projections, and profit per shares was $2.43, higher than the $2.10 expectations. Despite the earnings beat, the company’s shares didn’t see an influx of buyers, which could be because of the weaker than expected 4th quarter guidance. Airbnb’s guidance reflects revenue between $2.13B and $2.17B, citing the decline in international travel during the final three months of the year due to holidays. The company’s history shows that the majority of their revenue comes from outside the U.S., so their reasoning for the revenue decline is valid. Even though the company didn’t mean...
PAYC Q3 Earnings Analysis Shares of Paycom posted their worst day on record after reporting their third quarter earnings and falling short of analyst expectations. The payroll and human resources company had already struggled to impress Wall Street since their last earnings, and their guidance miss this quarter didn’t sweeten their valuation at all. Analysts expected the company to post about a 20% revenue growth projection in 2024, but they fell short, projecting only 10-12% growth expectations. Even after the earnings decline, PAYC is still trading at a 42 P/E ratio, far above their largest competitor, ADP. ADP is bringing in nearly $20B in revenue a year and is trading at a 25 P/E ratio, where is PAYC is only...
