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Cryptopolitan 2025-01-30 00:19:39

Wall Street giants Tesla, Meta, and Microsoft report weak earnings after the bell

Wall Street got a hard slap after the bell on Jan. 29 when Tesla, Meta, and Microsoft dropped their earnings reports, each showing numbers that didn’t hit the targets analysts had set. Investors saw their hopes crash as three of the biggest tech giants struggled on multiple fronts—electric vehicles, digital advertising, and cloud computing. Shares of all three companies saw immediate hits in extended trading. Let’s break down the chaos, who got hurt, and why it’s making headlines everywhere. Tesla warns of higher production costs Tesla missed expectations for its fourth-quarter earnings, reporting 73 cents per share compared to Wall Street’s expected 75 cents, according to analysts surveyed by LSEG. Revenue came in at $25.71 billion, much lower than the anticipated $27.27 billion. The stock took a 3.4% dive in after-hours trading at 4:14 p.m. in New York, proving investor frustration with the electric vehicle giant’s performance. Tesla told investors its goal to build more affordable cars remains on track, with production for new models starting in the first half of 2025. The Cybercab, Tesla’s latest project, is also expected to roll out by 2026. But here’s the thing, Tesla admitted it won’t be cutting production costs as much as previously planned. Instead, the company will rely on a combination of its current production methods and a next-gen platform to ramp up volumes during what it called “uncertain times.” Analysts didn’t love that message. The mix of slower cost reductions and missed revenue left Wall Street skittish. Still, Tesla’s loyal fan base came through, pushing the stock up 2% in later after-hours trading. Meta struggles to meet growth expectations Meta Platforms, the company behind Facebook and Instagram, projected a weaker-than-expected sales outlook for the first quarter of 2025, ranging between $39.5 billion and $41.8 billion. The midpoint of that forecast, $40.65 billion, came in below the $41.7 billion analysts had predicted, according to Bloomberg. Shares rose 5% in after-hours trading, but that optimism wasn’t about the future, it was about Meta narrowly beating its fourth-quarter numbers. For the last quarter of 2024, Meta posted $48.39 billion in revenue and $8.02 in earnings per share, outperforming Wall Street’s expected $47.04 billion in revenue and $6.77 per share in earnings. Mark Zuckerberg’s metaverse ambitions and AI investments continue to weigh heavily on Meta’s balance sheet, and the company isn’t generating ad revenue fast enough to offset those costs. And the company got hit with more drama. According to a Wall Street Journal report, President Donald Trump signed settlement papers that require the company to cough up $25 million to settle a 2021 lawsuit. Microsoft investors lose patience with AI rollout Microsoft Corp. disappointed investors when it reported slower growth in its Azure cloud computing business. The division posted a 31% revenue gain during the quarter, a drop from the 34% growth it recorded the previous quarter. Analysts had projected a 32% gain, and Microsoft’s miss triggered a 4% drop in its stock during after-hours trading. Total revenue for the company hit $69.6 billion, with profit coming in at $3.23 per share. Both figures surpassed Wall Street’s estimates of $68.9 billion and $3.12 per share, but the Azure slowdown was enough to overshadow the overall positive results. Microsoft has been pouring billions into AI, banking on its close relationship with OpenAI, the makers of ChatGPT. Over the last year, the company has launched many AI-powered products under the Copilot brand. But the returns have been slow, and investors aren’t thrilled. Meanwhile, AI king Nvidia saw a slight recovery, gaining 1% after a brutal 17% drop earlier in the week. The stock had been rattled after Chinese AI startup DeepSeek sparked concerns about US dominance in AI tech. Cryptopolitan Academy: Are You Making These Web3 Resume Mistakes? - Find Out Here

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