Microsoft Earnings: Will AI Investments Boost Profits? Wall Street Awaits Key Report

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Microsoft Earnings: Will AI Investments Boost Profits? Wall Street Awaits Key Report. 💡 The company is set to report its fiscal fourth quarter earnings, with analysts expecting $2.94 EPS on $64.5 billion revenue, driven by AI and cloud services growth. Investors are keen to see if AI investments are paying off, following Alphabet's mixed results last week. Yahoo Finance reports.

🍟 MacMiss: McDonald's misses Q2 estimates across the board. Yahoo Finance reports.

🚨 TechTurbulence: US stock turbulence throws spotlight on Big Tech's valuations. Reuters reports.

🤖 FutureOS: Apple will reportedly release artificial intelligence features in October. CNBC reports.

📈 Priceflix: Netflix holding investor call for possible first blue-chip bond. Yahoo Finance reports.

🛫 CEOChange: Boeing Has a New CEO Candidate. MarketWatch reports.

💸 AICosts: Microsoft's costs in focus as fears rise over slow payoff from AI. Reuters reports.

*Analyzing the markets with Richie Naso, a Wall Street veteran of over 40 years and former member of the NYSE.

LAST WEEK:

Was one for the record books, featuring the largest red day for ES since December 2022 on Wednesday, with ES snapping a historic 357-day streak with a 2% red day. As a result of this, ES put in another red week, making this the second red week in a row. Red weeks have been relatively rare in 2024. We only had two red weeks in a row on three other occasions, two of which bottoms were set afterwards, and one of which (April) we put in a third red week then rallied 700 points.

ON FRIDAY:

S&P 500 JUMPED 1.1% for its best day in seven weeks after 3M and several other big companies delivered better profits than analysts expected.

The closing price of the top three market percent gainers trading near or above $3 on July 29.

*All pricing and percent gains are based on regular market trading hours from 9:30am to 4:00pm Eastern Time

1. $AIU: Meta Data Limited
Total gain: 784.77%
The stock appeared to be moving on no notable news.

2. $TWOU: 2U
Total gain: 115.20%
The stock appeared to be moving on no notable news.

3. $NIPG: NIP Group
Total gain: 81.77%
The company announced the closing of its initial public offering of 2,250,000 American depositary shares ("ADSs") at a price of US$9.00 per ADS. In addition, the underwriters partially exercised their option to purchase an additional 182,526 ADSs at the initial public offering price on July 26, 2024. Benzinga reports.

*Estimate and Actual numbers represent Earnings Per Share in US Dollars

WU: Western Union
2Q 2024
After Market Close
Estimate: 0.450
Actual: N/A

SBUX: Starbucks
3Q 2024
After Market Close
Estimate: 0.930
Actual: N/A

MSFT: Microsoft
4Q 2024
After Market Close
Estimate: 2.930
Actual: N/A

Time (ET) / Report / Period

10:00 am - Consumer confidence - July
10:00 am - Job openings - June

"Investing well is less about finding the perfect stock and more about developing a sound investment philosophy and sticking to it."

― Seth A. Klarman

Sourced in:
“Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful
Investor”, by Seth A. Klarman, published in 1991