Quarterly figures: Microsoft and Meta also with massive growth +++ JP Morgan comments on Apple’s results | News
Not only Apple presented the figures for the past quarter, other large listed companies also did the same. While Alphabet, Amazon and Nvidia will only be hosting their quarterly conference next week, the two industry heavyweights Microsoft and Meta have already documented their performance. For both, it can be seen, as in the case of Apple, that money was literally printed in the Christmas quarter. Microsoft generated a net profit of $38.5 billion (+21 percent), although this was mainly due to OpenAI-related book profits of almost $8 billion. The cloud segment grew particularly strongly, but surprisingly the Windows division also grew slightly – although in view of the skyrocketing memory prices, private users were expected to be reluctant to purchase.
Meta turned sales of almost 60 billion dollars (+24 percent) into a profit of 22.8 billion (+9 percent). The difference between the increase in sales and profits is related to 40 percent higher investments, especially in the AI area. However, this is certainly bearing fruit, because the company emphasizes how well AI-based advertising works – and 98 percent of sales come from advertising.
JP Morgan comments on Apple’s earnings
In an analysis for investors, JP Morgan also addresses what was heard from Apple during its quarterly figures. Among other things, storage prices are discussed. Comments from Cook and Parekh provided some reassurance here, as Apple does not expect any problems for the current quarter either. However, starting in the fall, the matter could become a risk, with Apple more concerned about production capacity than unaffordable chips. According to JP Morgan, the statement was intended to help ease tensions.
If the new generation of Siri comes onto the market, it is likely to generate further demand, according to the investment bank. However, there are some doubts as to whether the growth of the App Store will continue to develop. The global economic situation, which JP Morgan currently classifies as rather uncertain, is seen as a factor of uncertainty.
In view of the discussions surrounding a successor to Tim Cook as Apple CEO, the analysis adds that this certainly represents a risk. However, Apple is known for making changes in top positions go smoothly. Despite these factors, the financial future is considered to be very solid for the foreseeable future – and the price target is increased to $315.
