SNAP melts down, Disney earnings, Big Tech breakdown with Dan Ives and Alex Kantrowitz
Feb 7, 2024
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Tech analyst Dan Ives and journalist Alex Kantrowitz discuss the meltdown of SNAP, Disney earnings, and breakdowns of big tech companies like Tesla, Alphabet, Microsoft, Meta, Apple, and Amazon.
Amazon's record-breaking profits highlight the success of its investments in high-margin areas and AI-powered products.
Microsoft's strong quarter is driven by its focus on AI and Azure, positioning it as a market leader.
Apple's mixed results emphasize the importance of its AI initiatives and expanding AI capabilities.
Amazon's transformation into a conglomerate with multiple business segments positions it for continued success despite challenges in the retail industry.
Deep dives
Amazon Reports Impressive Quarter with Record Profits
Amazon reported record-breaking profits of $13.2 billion, marking the largest profit in the company's history. Despite concerns over retail growth, Amazon's high-margin areas, such as AWS and advertising, experienced significant growth. The company's investments in AI and advertising have paid off, with advertising revenue growing by 26%. The strong earnings report shows the successful transformation of Amazon as it focuses on higher-profit areas and continues to innovate with products like the AI-powered Rufus shopping assistant.
Microsoft's Cloud Business Drives Record Quarter
Microsoft reported a record-breaking quarter driven by the continued strength of its cloud business, surpassing $33 billion in revenue, a 24% increase year-over-year. The company's focus on AI and its Azure cloud platform are paying off, with increasing enterprise workloads and strategic deals, such as Vodafone's $1.5 billion investment. Microsoft's commitment to monetizing its cloud services and expanding its AI capabilities position it as a market leader and a top competitor in the industry.
Apple Faces Revenue Challenges, But Remains Optimistic
Apple's most recent quarter showed mixed results, with revenue beating expectations but services missing the mark. The company's revenue growth has been slowing, partly due to challenges in China. Apple's introduction of AI features, such as Rufus the shopping assistant, and the upcoming AI app store are positive signs for the company. However, concerns remain about the iPhone sales decline and the impact of AI on customer satisfaction. Overall, Apple is optimistic about its long-term prospects, leveraging its large install base and expanding AI capabilities.
Amazon's Impressive Quarter Adds to Its Conglomerate Status
Amazon's quarter highlighted its position as a conglomerate with multiple business segments driving growth. Despite online store sales reaching a plateau, areas like AWS and advertising experienced strong growth, especially with the launch of sponsor ads and sponsor TV. Amazon's transformation into a more profitable company with significant R&D investments and expanding AI capabilities positions it for continued success. While challenges remain in balancing the cluttered retail experience, Amazon's focus on high-margin areas and customer satisfaction sets it apart from its competitors.
Disney set to report quarterly earnings
Disney is expected to report $1.82 billion in net income for the quarter, with analysts projecting $23.72 billion in revenue, the slowest pace of growth since the start of the pandemic. However, expectations for the quarter are low, and the focus will likely be on Disney's future outlook and the progress of its turnaround efforts.
Warner Bros., Disney, and Fox team up for new sports app
Warner Bros. Discovery, Disney, and Fox are partnering to create a new sports app that aims to compete with big tech companies like Amazon and provide a cheaper streaming option for sports fans. The app, set to launch this fall, will offer access to live and archived games, as well as other features like multi-view options and messaging capabilities.
Overindexing of tech and media news skews perception of economic conditions
A recent survey conducted by Bloomberg Markets Live suggests that conversations on platforms like Twitter tend to overindex on media and tech news, leading to a skewed perception of economic conditions. While job reports and lay-offs in these sectors may dominate headlines, they may not fully reflect the broader economic landscape, where consumer spending remains strong or even on the rise.
The future of Apple's AR/VR venture, the Apple Vision Pro
Opinions on the success of Apple's AR/VR venture, the Apple Vision Pro, vary. Some experts believe it will revolutionize consumer experiences, while others are more skeptical, citing challenges in securing app development by top brands. Despite differing perspectives, the potential of the Apple Vision Pro and similar AR/VR products to transform industries and offer immersive experiences is undeniable.
On this episode of TCAF Tuesday, we're bringing you a new show called Great Quarter Guys! On this episode, Josh Brown, Michael Batnick, Alex Kantrowitz, and Dan Ives discuss: Tesla, Alphabet, Microsoft, Meta, Apple, and Amazon. Then, on an all-new episode of What Are Your Thoughts, Josh and Michael discuss: Mike Wilson, Snap, new Dow stocks, layoffs, the consumer, and much more!
Thanks to Rocket Money for sponsoring this episode! Cancel your unwanted subscriptions by going to: https://rocketmoney.com/compound
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