3 Tech and AI Stocks That Just Blew the Cover Off of Earnings

Core Viewpoint - The earnings season is crucial for investors and analysts, particularly for tech and AI stocks, as they assess the impact of recent developments like the emergence of DeepSeek on valuations and market performance [1]. Group 1: Earnings Reports - Publicly traded companies report financial results quarterly to inform investors about earnings and balance sheet status, often providing guidance for future performance [2]. - Strong earnings and guidance typically lead to positive stock movements, with several tech and AI companies recently exceeding expectations [3]. Group 2: Netflix - Netflix reported strong subscriber growth, adding nearly 19 million paid subscriptions in the fourth quarter, significantly surpassing the expected 8.2 million [4]. - The company streamed major live events that attracted tens of millions of viewers, contributing to subscriber retention and growth across various content [5]. - Management raised its 2025 revenue projection by approximately $500 million to a range of $43.5 billion to $44.5 billion and announced a $15 billion share repurchase plan, alongside subscription price increases [6]. Group 3: GE Aerospace - GE Aerospace reported strong fourth-quarter earnings, beating analyst estimates for revenue, earnings, and operating profits, with an EPS of $1.32, exceeding consensus by $0.28 [8]. - Revenue reached $9.9 billion, surpassing estimates by $400 million, and operating profit was $1.9 billion, exceeding expectations by $200 million [8]. - The spin-off of healthcare and energy businesses has positively impacted GE Aerospace's performance [7]. Group 4: ASML - ASML reported fourth-quarter earnings that beat estimates, with net income of $2.8 billion, exceeding analyst expectations by approximately $500 million [9]. - Net sales were $9.64 billion, nearly $200 million above estimates, and the company maintained its 2025 revenue outlook [9]. - CEO Christophe Fouquet views the emergence of DeepSeek as a potential catalyst for increased semiconductor demand, despite recent challenges in the AI sector [10][11].