Meta and Amazon Shares Surge, Apple Falters in Q4 Earnings Reports
In a remarkable turn of events, Meta Platforms and Amazon experienced significant gains on Friday following their impressive fourth-quarter earnings reports. Meta’s shares soared by 16% at the opening bell, adding a staggering $160 billion to its market capitalization. Similarly, Amazon saw a 6% increase, adding $110 billion to its valuation.
The combined valuation of the “Magnificent Seven” stocks, including Meta and Amazon, skyrocketed by $270 billion on Friday alone. This increase in value surpasses the entire market capitalization of companies such as Netflix, Coca-Cola, Bank of America, McDonald’s, Disney, and Nike.
Meta’s stellar performance can be attributed to Mark Zuckerberg’s “Year of Efficiency” cost-cutting measures, which resulted in tripled profits year-on-year. The company also announced its first-ever dividend of 50 cents per share and a $50 billion stock buyback. Meanwhile, Amazon exceeded Wall Street’s expectations with its revenue and earnings-per-share for the quarter, thanks to a record-breaking holiday shopping season.
However, Apple faced disappointment as its stock dipped by 2% due to lower-than-expected sales in China. Despite beating quarterly earnings expectations, this setback resulted in a $70 billion decrease in market capitalization.
Overall, Meta has already seen a 12% increase year-to-date and a remarkable 109% increase over the past 12 months. Amazon has also experienced a 4% rise, while Apple has declined by 3%.
Benchmark stock-market indices also experienced positive movement on Friday, with the S&P 500 climbing by 0.2% and the tech-heavy Nasdaq 100 jumping by 0.7%.
According to Kathleen Brooks of XTB, these results demonstrate that tech companies are thriving beyond just AI. Meta’s outstanding performance and the announcement of a dividend have provided investors with a double dose of good news.
It will be interesting to see how these tech giants continue to shape the market in the coming months.