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Markets are settling into holiday mode, with stock futures slightly down on the last full trading day before Christmas. Here’s where things stand today: * Nasdaq-100: +0.37% * S&P 500: +0.04% (flat) * Dow Jones: -0.22% On Friday, the S&P 500 rose 1.1%, recovering
Quantum computing stocks are taking off in 2024. Is this the start of something big? Let’s take a closer look Google’s Chip Changes the Game Google’s new Willow chip, a 105-qubit processor, hit a big milestone: * Fixed Errors: It solved a 30-year problem by cutting down error
Government surveys that track the economy are failing. Budgets are shrinking, people are skipping surveys, and economic data we rely on is becoming less trustworthy. This is a big deal—because when the numbers are wrong, decisions that affect markets, businesses, and everyday life go wrong, too. Here’s what’
The S&P 500 Value Index just dropped 3.7%, marking its longest losing streak on record. Meanwhile, Bitcoin smashed past the $100,000 mark, and the Nasdaq climbed to 20,000. To me, it seems that value stocks have been left in the dust, and investors chasing bigger
Almost $10 billion has poured into Bitcoin ETFs since the US election, pushing Bitcoin past the $100,000 mark for the first time. The momentum is crazy, with Bitcoin posting its best winning streak since 2021. With investors pouring in, knowing the risks are more important than ever. Bitcoin’s
If you’re like me, you’ve probably checked your stock app more times than you’d like to admit. Well, brace yourself for another round of notifications because Apple and Microsoft are set to report their earnings this week.
In this post, I'm going to dive into what investors should expect from Apple and Microsoft’s earnings reports, why these results matter, and what they mean for the broader market.
Apple’s Drivers of Growth
Apple’s earnings report on August 1st are going to shake markets. The most attention will likely focus on a few key areas: AI developments in iPhone, gross margins, and service revenue (aka subscription) growth. Future iPhone sales are crucial, and AI enhancements to Siri and other features could spur more sales down the road.
Gross margins are expected to continue their upward trajectory, thanks to Apple's in-house supply chain and its high-margin services segment. The services segment, which makes up about 1/4th Apple's total revenues, is growing fast. This includes revenue from the App Store, Apple Music, iCloud, and other subscription services.
Microsoft’s Earnings Expectations
Microsoft’s upcoming earnings report on July 30th will likely focus on the performance of its cloud services, particularly Azure. Despite a slower customer base growth compared to competitors Amazon Web Services (AWS) and Google Cloud Platform (GCP), Microsoft Azure has expanded its market share by 14.2% from 2023. In contrast, AWS and GCP grew by 24.6% and 23.2%.
Another interesting metric of Microsoft is their Office 365 product, that continues to benefit their margins and profits. The Office 365 subscriber base has had an average annual growth of 33.78% over the past ten years. It's a pretty remarkable figure that will support the network effect Microsoft has over it's other SAAS competitors.
Broader Market Trends
Shift to Small Caps: Last week was a game changer for markets. We saw a huge swing away from big tech to small caps, driven by expectations of lower interest rates in September.
CAPEX Spending on AI: Investors could get concerned about the tangible returns on massive capital expenditures (CAPEX) in artificial intelligence (AI). While the spending to build infrastructure around AI is useful, the immediate return on these investments could be uncertain.
How do you think investors will react to these company reports this week?