Tesla $TSLA dumped in after hours after reporting an earnings miss
Tesla shares drop 6% on weak auto revenue, warning of slower growth in 2024 Tesla reported revenue growth of 3% in the fourth quarter, trailing estimates. Auto revenue increased just 1% from a year earlier. Vehicle volume growth in 2024 “may be notably lower” than last year’s growth rate, the company warned. Source: barchart
Netflix adds 13.1 million subscribers, tops revenue estimates as membership push gains steam
KEY POINTS -> Netflix added 13.1 million subscribers during the fourth quarter. The company now has 260.8 million paid subscribers. • Subscribers +13M Q/Q to 260M. -> The company also topped Wall Street’s revenue expectations. • Revenue +12.5% Y/Y to $8.8B ($0.1B beat). • Operating margin 17% (+10pp Y/Y). • EPS $2.11 ($0.11 miss). -> Q1 FY24 Guidance: • Revenue +13% Y/Y. • Operating margin 26%. Source: App Economy Insights, CNBC
Tesla is reporting results tonight?
Who wants to play $TSLA earnings call bingo? 😂 Source: Markets & Mayhem
US earnings revision: a big tailwind for big tech >>> 5 out of 7 Big Tech names have seen upward earnings estimate revisions for the last quarter and this year over the past 3 months
As a group, they’ve seen average upward earnings revisions of 6.7% and 4.9% for last quarter and 2024 respectively, considerably better than the S&P (-7.1%, -1.3%). Source: DataTrek, TME
US earnings: things get fun starting this week
Source: The Transcript, Brad Freeman / StockMarketNerd
What are you watching this week?
• Tuesday: $GS, $IBKR, $MS. • Wednesday: $DFS, $PLD, $SCHW. • Thursday: $TSM. • Friday: $ALLY. Source: Earnings Whispers
Key Events This Week
1. 10-Year Note Auction - Wednesday 2. crudeoil Inventories - Wednesday 3. December CPI Inflation data - Thursday (Crucial data ahead of the January Fed meeting). 4. Initial Jobless Claims - Thursday 5. December PPI Inflation data - Friday 6. Total of 4 Fed Members Speak 7. Earning season Kick-off with some big banks publishing on Friday - see below Source: The Kobeissi Letter, Earnings Whispers
A widening gulf in earnings power between Tech and the rest of the S&P 500
Chart below shows how 2024 earnings expectations for the mega-cap tech and the rest of tech and rest of S&P 500 have been evolving throughout 2023. Source: Barclays, The Market Ear
