From Nasdaq:

Big week for big tech as Microsoft, Apple, Amazon, Alphabet, and Meta all reveal Q4 2023 results, with all companies beating EPS expectations, but with mixed market reactions to their earnings.

All five companies made more money in Q4 than analysts anticipated, with around 70% of S&P 500 companies beating expectations, lower than the usual 75%.

High percentage of companies beat expectations due to a silent agreement between CEOs and analysts, leading to mutual benefit.

Big tech firms surprisingly beat expectations despite the impact of rate hikes and real estate crisis, signaling a tough quarter.

Market being driven by gains in a few big tech stocks, leading to analysts revising estimates upwards to reflect market sentiment.

Good news is that market is beginning to differentiate and trade based on actual performance and prospects of each company, rather than group perception.

Earnings season signals start of divergence in performance, marking the overdue death of the “Magnificent Seven” as investors and traders focus on each company’s merits.



Read more: After Earnings, What’s Next for the Magnificent Seven?