Earnings Report | #48
$TSLA, $AAPL, $MSFT, $META
Hello everyone!
The Q4 2024 earnings season has been packed with major updates from some of the biggest names in tech. From Tesla's transition phase to Microsoft's AI-driven growth, Apple's resilience, and Meta's strong ad recovery, there’s a lot to unpack.
Let’s dive into the highlights.
Overview
📈 Tesla ( TSLA 0.00%↑ ) – A Quarter of Transition
🌐 Microsoft ( MSFT 0.00%↑ ) – Cloud & AI Domination
🍏 Apple ( AAPL 0.00%↑ ) – Resilient Amid Headwinds
🌍 Meta ( META 0.00%↑ ) – Strong Ad Recovery & AI Focus
📈 Tesla (TSLA) – A Quarter of Transition
Revenue: $25.7B (+2% YoY), missing estimates of $27.2B
EPS: $0.73, below expectations of $0.77
Automotive Revenue: $19.8B (-8% YoY)
Energy Business: $3B (+113% YoY) — record-breaking quarter
Outlook: Focus on affordable models in H1 2025, Cybercab by 2026
Analysis:
Tesla faced headwinds with declining automotive revenue due to intense competition and price pressures in the EV market. However, its energy business has emerged as a key growth driver, posting a record 113% YoY growth. The ramp-up of the Megafactory in Shanghai is expected to bolster this momentum.
Short-Term Outlook: Expect volatility driven by demand fluctuations, macroeconomic uncertainties, and Cybertruck production ramp.
Long-Term Outlook: Tesla’s focus on affordable EVs, coupled with its autonomy roadmap (Cybercab) and energy growth, positions it for sustained growth beyond 2025.
🌐 Microsoft (MSFT) – Cloud & AI Domination
Revenue: $69.6B (+12% YoY)
Net Income: $24.1B (+10% YoY)
EPS: $3.23 (+10% YoY)
Microsoft Cloud Revenue: $40.9B (+21% YoY)
Azure Growth: +31% YoY
Analysis:
Microsoft delivered exceptional growth, driven by cloud services (Azure) and its AI-powered products. The AI segment alone surpassed a $13B annual run rate, showcasing Microsoft’s dominance in enterprise AI solutions.
Short-Term Outlook: Continued strong demand for Azure and AI services will fuel growth. Expect margin expansion as operational efficiencies kick in.
Long-Term Outlook: Microsoft’s investment in AI infrastructure and its cloud ecosystem will position it as a leader in the AI economy, with growth accelerating beyond 2025.
🍏 Apple (AAPL) – Resilient Amid Headwinds
Revenue: $119.6B (-1% YoY)
Net Income: $30B (+2% YoY)
EPS: $1.88, meeting expectations
iPhone Revenue: $65.8B (+3% YoY)
Services Revenue: $22.6B (+10% YoY) — all-time high
Analysis:
Despite supply chain challenges and a slight revenue decline, Apple’s strong iPhone sales and robust services growth provided stability. The Services segment’s 10% growth highlights Apple’s success in diversifying revenue streams beyond hardware.
Short-Term Outlook: Expect steady performance driven by new product launches (Vision Pro) and strong services growth.
Long-Term Outlook: Apple’s AI integration, expanding services ecosystem, and wearable innovations will drive sustainable growth through 2025 and beyond.
🌍 Meta (META) – Strong Ad Recovery & AI Focus
Revenue: $48.4B (+21% YoY)
Net Income: $20.8B (+49% YoY)
EPS: $8.02 (+50% YoY)
Ad Revenue: $46.8B (+21% YoY)
Free Cash Flow: $13.15B (Q4), $52.1B (2024)
Analysis:
Meta’s ad business rebounded strongly, with ad impressions and average price per ad both increasing. The company’s AI-driven ad optimization played a crucial role, while Reality Labs investments continue to be a long-term bet.
Short-Term Outlook: Expect continued ad revenue growth driven by AI enhancements and strong engagement across Meta’s platforms.
Long-Term Outlook: Meta’s focus on AI, VR/AR (Reality Labs), and monetizing new platforms positions it for multi-year growth, despite regulatory challenges.
🚀 Final Take: What’s Next?
While Tesla navigates a transition phase, Microsoft and Meta are capitalizing on AI, and Apple remains a pillar of resilience. 2025 will be pivotal, with AI, energy, and new product lines shaping the growth trajectory.
What do you think about these earnings? Which company are you most bullish on? Let's discuss below! 🚀🌐