Tesla (TSLA) reported fourth-quarter revenue and adjusted profit below analysts' estimates late Wednesday, with the stock first falling and then rising in after-hours trading after the company's report and conference call. Tesla posted net income of $2.32 billion, or $0.66 per share, on revenue of $25.71 billion. Analysts polled by Visible Alpha expected profit of $2.33 billion, or 66 cents per share, on revenue of $27.35 billion. Adjusted earnings per share (EPS) of $0.73 came in 5 cents below estimates. ...

Core Insights - Apple shares have increased approximately 40% over the past nine months, but analysts suggest caution ahead of the upcoming earnings report [2][5] - A majority of analysts maintain a "buy" or equivalent rating, with a consensus price target of around $246, indicating a 3% premium over the recent price of $239 [2][5] Analyst Ratings and Sales Estimates - Oppenheimer downgraded Apple to a neutral "perform" rating and reduced its iPhone sales estimates for the next 12 to 18 months, citing increased competition in China and an underwhelming rollout of Apple Intelligence [3][5] - Concerns regarding Apple's performance in China have intensified, with Canalys reporting a 17% decline in iPhone shipments for 2024 [4][5] Regional Sales Performance - Analysts expect Apple's sales in China and the rest of Asia (excluding Japan) to rise only 2% year-over-year to $31.65 billion [5]

Meta Platforms (META) reported fourth-quarter earnings that topped analysts' estimates as revenue grew more than 20% year-over-year. The social-media and tech giant posted fourth-quarter revenue of $48.39 billion, above the analyst consensus compiled by Visible Alpha. Its net income of $20.84 billion, or $8.02 per share, rose from $14.02 billion, or $5.33 per share, a year earlier, also topping projections. Advertising revenue climbed nearly 21% to $46.78 billion, compared to estimates of $45.46 billion, a ...

Tesla (TSLA) shares fell 2.5% in extended trading Wednesday after the electric vehicle maker's fourth-quarter revenue and adjusted profit came in lower than expectations. Tesla posted net income of $2.32 billion, or $0.66 per share, on revenue of $25.71 billion. Analysts polled by Visible Alpha expected profit of $2.33 billion, or 66 cents per share, on revenue of $27.35 billion. Adjusted earnings per share (EPS) of $0.73 came in 5 cents below estimates. The results come after Tesla's Q4 deliveries and pro ...

Microsoft (MSFT) shares moved lower after the close Wednesday as the tech giant reported fiscal second-quarter Intelligent Cloud revenue that missed analysts’ expectations. The company saw revenue rise 12% year-over-year to $69.63 billion, surpassing the analyst consensus from Visible Alpha. Earnings came in at $24.11 billion, or $3.23 per share, compared to $21.87 billion, or $2.93 per share, a year earlier. That was also above expectations for the quarter ended Dec. 31. However, revenue from Microsoft’s ...

Core Viewpoint - Starbucks shares have seen an increase as analysts cautiously respond to new CEO Brian Niccol's "Back to Starbucks" turnaround plan, despite mixed opinions on the company's performance [2][3]. Group 1: Analyst Perspectives - JPMorgan analysts noted a narrower-than-expected 4% decline in global same-store sales for the fiscal first quarter, maintaining an "overweight" rating with a price target of $105, suggesting improving business momentum [3]. - Jefferies analysts expressed a bearish outlook, stating there are no early signs of meaningful improvement in same-store sales or traffic trends, maintaining an "underperform" rating with a price target of $76 [4]. - Oppenheimer analysts adopted a neutral stance, reiterating a "perform" rating, acknowledging a favorable setup under Niccol but struggling to identify a clear path for improvement in same-store sales, margins, and earnings per share [5]. Group 2: Company Performance and Expectations - The fiscal first-quarter results showed a less severe decline in same-store sales than analysts anticipated, indicating potential early success for Niccol's turnaround strategy [6]. - CFO Rachel Ruggeri indicated that year-over-year earnings pressure could intensify in the current quarter but is expected to improve in the second half of fiscal 2025 [6].

Key TakeawaysNvidia shares tumbled Wednesday, dashing hopes for a quick recovery from losses earlier in the week amid concerns about competitiveness of American AI firms and their spending on artificial intelligence. The rapid rise of lower-cost models from Chinese companies that can compete with those from leading American firms has spurred a reckoning on Wall Street.Bank of America analysts told clients in a note Wednesday they see this as "AI's Sputnik moment," suggesting the competition could push U.S. ...

Core Insights - Starbucks is implementing a "Back to Starbucks" campaign aimed at reversing sales declines and doubling its U.S. footprint, with net sales down 0.3% and same-store sales down 4% year-over-year in the fiscal first quarter [2][6] - The company is focusing on operational improvements, including a mobile order-pacing algorithm to enhance service speed and digital menu boards to streamline offerings [3][4] Group 1: Strategy and Operations - The new mobile order-pacing algorithm aims to serve in-store customers within four minutes, addressing current inefficiencies in order processing [3][4] - Starbucks plans to reduce its menu by about 30% by the end of September, allowing for more effective merchandising of food and drink options throughout the day [4][6] - The company is also reviewing store aesthetics, introducing new seating options, and reinstating features like ceramic mugs and condiment bars [5][6] Group 2: Expansion Plans - Starbucks intends to open small, mid-size, and large format stores as part of its expansion strategy, with approximately 17,050 stores in the U.S. as of late December [5][6] - The "Back to Starbucks" campaign is designed to restore brand confidence and support sustainable long-term growth [2][3]

Core Insights - Alibaba has launched a new AI model, Qwen 2.5 Max, claiming it can outperform leading models from DeepSeek, OpenAI, and Meta Platforms [1][4] - Following the announcement, Alibaba's U.S.-listed shares increased by 3% in early trading [1] - The upgraded model reportedly performed on par with Amazon-backed Anthropic's Claude 3.5 Sonnet and surpassed OpenAI's GPT-4o, DeepSeek's V3, and Meta's Llama 3.1 in benchmark tests [2] Market Context - The news of Alibaba's AI model comes shortly after concerns regarding the rising popularity of DeepSeek's AI model, which reportedly competes with American counterparts at a lower cost, negatively impacting U.S. tech stocks [3][4] - The tech sector experienced volatility, with major indexes affected by the news, and shares of Nvidia, Broadcom, and Palantir also declining [3][4]

KEY TAKEAWAYSBloomberg is reporting that Microsoft and OpenAI are investigating whether a group linked to Chinese startup DeepSeek used improperly obtained data from the American AI company to launch the low-cost AI model that sparked a selloff Monday.DeepSeek earlier this month released its super-efficient R1 model at a fraction of the cost of AI models of U.S. rivals like OpenAI.President Donald Trump’s AI and Crypto Czar David Sacks said on Fox News that there’s “substantial evidence” that DeepSeek “dist ...