From Nasdaq: 2024-04-26 18:23:00

The ‘Magnificent 7’ group, including Microsoft, Alphabet, Meta, and Tesla, have reported their Q1 results, with impressive performances from Microsoft and Alphabet reassuring investors about their AI strategies. Meta’s earnings were up 80.5%, but concerns over increased capital expenditures for AI are prevalent. Tesla’s weak results reflect deteriorating earnings outlook due to softening demand and competition.

Despite concerns, Tesla’s Q1 results were not as bad as feared, with both top and bottom lines missing estimates. The stock remains a laggard compared to other Mag 7 stocks. Amazon, Apple, and Nvidia are set to report their Q1 results in the coming weeks, with total Q1 earnings for the group expected to be up 43.7% on 13.2% higher revenues compared to last year.

The Technology sector as a whole is expected to see Q1 earnings rise by 27.1% on 8.7% higher revenues. The sector is currently in the heart of the Q1 earnings season, with over 950 companies reporting, including Apple and Amazon. Q1 earnings for S&P 500 companies are up 2.8% on 3.3% higher revenues, with many beating EPS and revenue estimates.

Looking ahead, total S&P 500 earnings for 2024 Q1 are projected to be up 3.8% on 3.7% higher revenues. This follows a period of strong earnings growth in the preceding quarters. Annual S&P 500 earnings for 2024 are expected to rise by 8.3% on 1.7% revenue growth. This positive earnings picture reflects the market’s overall growth trajectory.



Read more at Nasdaq:: Does Mag 7 Leadership Remain Intact Post-Tesla and Meta Disappointments?