Big Tech Q4 Earnings Breakdown: META, MSFT, AAPL

Q4 Earnings notes Earnings Snapshots: Microsoft (MSFT), Meta (META), Apple (AAPL) 📊 Microsoft (MSFT): AI Growth Meets Capacity Limits  Revenue: $69.6B (+12% Y/Y), beating estimates by $0.8B. EPS: $3.23 (+12% Y/Y), $0.13 above expectations. Azure & Cloud: Intelligent Cloud revenue grew 20% Y/Y to $25.5B, with Azure AI services up 157% Y/Y. AI Push: AI business surpassed $13B run rate (+175% Y/Y); Copilot adoption expanding rapidly. Margins: Gross margin at 69% (flat Q/Q), operating margin at 45% (-2pp Q/Q) due to AI-related costs. CapEx: Soared 97% Y/Y to $23B, focusing on AI infrastructure. Challenges: Cloud growth slightly slowed, with Azure growth decelerating from 34% to 31% Y/Y. Outlook: Expecting double-digit revenue growth, with AI as the key driver. Capacity constraints to ease by FY25 year-end. Key Takeaways: Stock Down 6%: Post-earnings reaction reflects high expectations and slight Azure deceleration. Cloud Remains Strong: Azure now represents 40% of total revenue, showcasing Microsoft's cloud dominance. Net Profit: $21.9B, highlighting strong profitability amidst heavy AI investments.   ♾️ Meta (META): AI Infrastructure Takes Center Stage  Revenue: $48.4B (+21% Y/Y), beating estimates by $1.4B. EPS: $8.02 (+50% Y/Y), $1.26 above expectations. Advertising Growth: Strong ad revenue growth driven by +14% ad price increase and +6% more impressions. Reality Labs: $5B loss, reflecting heavy metaverse and AR/VR investments. AI Focus: Capital expenditure guidance of $60–$65B for 2025 (+70% Y/Y) to bolster AI infrastructure. Product Highlights: Meta AI expected to reach 1B+ users in 2025; developing AI with mid-level coding skills. Concerns: Q1 guidance ($39.5–$41.8B) fell short by $1B, raising growth slowdown worries. Strategic Shifts: Adjusting political strategies, revising content policies, and scaling back DEI efforts. Key Takeaways: Stock Up 3% (ATH): Reached an all-time high despite Reality Labs losses. Massive AI Spending: Heavy investments in AI infrastructure benefiting partners like NVIDIA. Strong Profitability: $12.4B net profit with 3.24 billion daily active users driving growth. 📱 Apple (AAPL): Services Growth Offsets China Weakness  Revenue: $124.3B (+4% Y/Y), beating estimates by $270M. EPS: $2.40 (+10% Y/Y), $0.06 above expectations. iPhone Revenue: $69.1B (-1% Y/Y), missing expectations. Strong Segments: Services surged +14% Y/Y to $26.3B; Mac (+16%) and iPad (+15%) outperformed. Gross Margin: 47%, driven by Services growth. China Weakness: Sales down 11% Y/Y due to competitive pressure and inventory adjustments. Outlook: Low- to mid-single-digit revenue growth in Q2, with FX headwinds (~2.5%). Strategic Moves: Stronger iPhone 16 sales in AI-supported markets, expanding Apple Intelligence features globally in April. Key Takeaways: Stock Flat: Stable performance with mixed growth results. $110B Buyback: Massive share repurchase plan signals confidence in long-term growth. Resilient Demand: iPhone demand stronger than expected despite China headwinds. Key Themes Across Big Tech: AI Investment Surge: Microsoft and Meta are aggressively investing in AI infrastructure, with CapEx hitting record levels. Cloud Dominance: Microsoft’s Azure remains a growth driver despite capacity constraints. Ad Revenue Resilience: Meta continues to dominate digital ads, while Apple leverages its ecosystem for steady Services growth. Geopolitical & Regulatory Risks: Apple faces headwinds in China, Meta navigates political realignment, and Microsoft manages global AI regulatory scrutiny. These companies remain growth powerhouses, with AI and ecosystem expansion as core themes heading into 2025. Not Financial advice. Disclaimer: The information presented in this video is for general informational purposes only and does not constitute personalized financial, tax, legal, or investment advice. Any third-party content referenced in this video is not endorsed by MP3 Fitness or MP3 Finance. This video is not intended to provide sufficient information for evaluating any specific security or investment decision. Any securities mentioned are for informational purposes only and should not be construed as a recommendation to buy, sell, or hold. While I may personally hold investments, either long or short, in securities discussed in these videos, I have no affiliation with the companies issuing those securities and do not engage in market making activities.    • MP3 Finance Disclaimer