Feb 2nd, 2024 – Friday indices performances: the S&P 500 closed the session with a + 1.07% performance, rising for a fourth-straight week thanks to strong tech earnings and reaching a new record. Thanks to almost the same tech companies, the Nasdaq was up by 1.74%, and also the Dow Jones gained 0.35% in this session.
Meta Platform shares soared around 20% on Friday, after posting a better-than-expected result in the fourth quarter of 2023. The company has also declared its first dividend of 50 cents per share, that will be paid in late March, along with authorization for additional stock buybacks.
Portfolio Holding Apple (AAPL) (Purchased 0.6 units @ $183.96) experienced a 2% stock decline despite beating expectations in Q1 earnings with $2.18 EPS and $119.6 billion in revenue. The factor that dragged down the stocks’ value were China sales, which fell short of the expected $23.5 billion, topping out at $20.8 billion impacting overall performance. Apple challenges in the Chinese market are due to economic factors and competition from a resurgent Huawei, but Apple has compensated these struggles with great performances in both North America and Europe. While iPhone sales beat analysts’ expectations at $69.7 billion, Mac revenue ($7.8 billion) and iPad revenue ($7 billion) missed projections. Services generated $23.1 billion, slightly below the expected $23.4 billion. The upcoming March launch of refurbished iPads and Macs may influence future performance.
Intel shares slid 1.4% in premarket trading after a report by The Wall Street Journal suggested a delay in the company’s $20 billion chip facility in Ohio, raising concerns about capital expenditure strategies. Analysts noted the delay might indicate a structural reset in forward revenue expectations, emphasizing the need for investors to monitor Intel’s response and reassessment of its strategic plans.
Author: Filippo Ferrero