Apple, Microsoft Need To Do More Than Just Beating Wall Street Estimates, Says Analyst: 'AI Enthusiasm And Potential Is Not Enough"
Portfolio Pulse from Pooja Rajkumari
Major tech firms like Microsoft and Apple are facing stock declines despite surpassing Wall Street estimates due to conservative forecasts and weak guidance. AI enthusiasm is not enough to satisfy investors, as seen with Microsoft's 6.1% stock drop and Apple's pre-market slide.
November 01, 2024 | 1:37 pm
News sentiment analysis
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POSITIVE IMPACT
NVIDIA could benefit from Alphabet's plans to increase AI infrastructure investments next year.
Jim Cramer noted that Alphabet's AI infrastructure investments could benefit NVIDIA, suggesting potential positive impacts on NVIDIA's business.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Apple's stock began sliding in pre-market trading despite beating estimates, due to weak guidance for December quarter sales.
Apple exceeded Wall Street estimates but provided weak guidance for the December quarter, leading to a negative investor reaction and a pre-market stock slide.
CONFIDENCE 100
IMPORTANCE 85
RELEVANCE 100
NEGATIVE IMPACT
Alphabet's stock declined 1.9% after an initial rise, following OpenAI's announcement of Chat GPT Search, a competitor to Google Search.
Alphabet's stock initially rose post-earnings but fell after OpenAI announced a competing product, highlighting competitive pressures in AI.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Microsoft's stock fell 6.1% despite exceeding revenue expectations due to a conservative forecast for the next quarter.
Microsoft reported strong earnings but provided a conservative forecast, leading to a 6.1% stock decline. This indicates that investors are looking for more than just beating estimates, especially in the context of AI potential.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100