Fresh Quarterly Reports of Alphabet, Apple, Facebook, Amazon, and Microsoft
6 minutes for reading
This week, US tech giants reported their performance in Q1, 2021 – Alphabet, Apple, Facebook, Amazon, and Microsoft. Let’s find out how GAFAM guys can surprise us.
Microsoft report: the highest revenue of the last 3 years
On April 27th, the IT giant, created by Bill Gates, reported the results of Q3 of financial 2021. The company’s representatives state that the revenue of the cloud service Azure grew by 50%, the revenue of the cloud version of the Office software – by 33%, and that of PC sales – by 19%.
Important details of the report:
- Revenue: $41.7 billion, +19% (forecast - $40.96 billion).
- Return on stock: $2.03, +45% (forecast - $1.78).
- Net profit: $15.5 billion, +44%.
Forecast for the current quarter
Amy Hood, the financial director of Microsoft, reported that this quarter, they plan to increase the revenue by 16%, to $43.6-44.5 billion. Meanwhile, the consensus forecast by Refinitiv is below $42.96 billion.
Market reaction and tech analysis
On April 28th, the next day after the report, the shares of Microsoft (NASDAQ: MSFT), dropped by 2.83% to $254.56, regardless of good quarterly results. On the next day, the falling continued – by 0.81% to $252.51.
However, the stock price remains above the 200-days Moving Average, demonstrating an overall uptrend. The aim of the correction is $244.50. Upon testing the support level, Microsoft shares have all the chances to start growing again with the aim of the nearest high at $263.00.
Alphabet report: record profit for the second quarter in a row
On April 27th, the company presented the results of January-March. According to the report, 81% of the quarterly revenue is provided by Google ads service. Ads sales grew by 32%, compared to the same months of 2020, while sales of cloud services – by 45.7%.
Important details of the report:
- Revenue: $55.3 billion, +34% (forecast - $51.18 billion).
- Return on stock: $26.29, +166% (forecast - $15.6).
- Net profit: $17.9 billion, +162%.
Forecast for the current quarter
The IT giant warned its investors that due to the self-isolation period coming to an end, the advertising business of Google would grow slower. Also, the company announced its plan to buy back its own stocks for $50 billion.
Market reaction and tech analysis
A good quarterly report made the shares of Alphabet (NASDAQ: GOOGL) grow by 2.97% to $2359.04. On Thursday, the growth of the stock price continued – by 1.43% to $2392.76.
Currently, the price has broken through the upper border of the ascending channel. Comparing current growth to the previous case, I presume that the quotations might correct to the upper border of the channel. Upon testing the support line and completing the correction, the shares will have all the chances for further growth, aiming at $2500.00.
Apple report: mighty sales growth in every category of products
On April 28th, the company from Cupertino presented the statistics of January-March and impressed analysts and investors by the scale of sales growth: smartphone sales - +65.5% to $47.94 billion; tablets – by 78.9% to $7.8 billion; laptops and PCs – by 70.1% to $9.1 billion; other products – by 24% to $7.83 billion.
Sky-rocketing of sales in the Chinese market is worth special attention - +87.5% compared to the same period of 2020.
Important details of the report:
- Revenue: $86.9 billion, +53.7% (forecast - $76.75 billion).
- Return on stock: $1.4, +119% (forecast - $0.98).
- Net profit: $23.63 billion, +110%.
Forecast for the current quarter
The company’s representatives announced that due to the global chip shortage, the supply of tablets and PCs would be limited. This, of course, will reflect in the sales volumes of these products and the overall revenue. However, dividends will be increased by 7%, as well as the stock buyback program – by $90 billion.
Market reaction and tech analysis
The forecast for the nearest three months made investors worry and somewhat deteriorated the leadership of Apple. On the report day, the share price of Apple (NASDAQ: AAPL) dropped by 0.6% to $133.58, on the next day – by $0.07% to $133.48.
On D1, the quotations demonstrate a general uptrend with corrections happening from time to time; they are still trading above the 200-days MA. Currently, the price is declining after a minor flat. This should be the beginning of another correction.
The aim of the decline might be the support level and the lower border of the ascending channel at $128.00. After the pullback is over, Apple has all the chances for further growth with the first aim at $145.00; then it can renew the highs and go on with the ascending dynamics.
Facebook report: ads provided perfect revenue
On April 28th, Mark Zuckerberg’s company presented its quarterly report. We found out that almost the whole of the company’s revenue in January-March came from its advertising business that is unbelievably flourishing because of the pandemic and global isolation.
Important details of the report:
- Revenue: $26.2 billion, +48% (forecast - $23.7 billion).
- Return on stock: $3.3, +93% (forecast - $2.37).
- Net profit: $9.5 billion, +93.9%.
Forecast for the current quarter
Facebook warned its investors that in the nearest three quarters, the growth of the revenue would slow down. The main reasons are self-isolation gradually coming to an end and the changes in the privacy policy of the iPhone.
Market reaction and tech analysis
On April 28th, the shares of Facebook (NASDAQ: FB) grew by just 1.16% to $307.1. However, on the next day, the growth amounted to 7.3%, to $329.51.
The aim is still above the 200-days MA and inside the ascending channel. Judging by similar episodes previously, a correction at the current stage is quite possible.
The aim of the pullback is the broken high, which is also the support level. After the correction is over, the quotations might go on growing, aiming at $340.00 and then – at the upper border of the ascending channel.
Amazon report: thank you, COVID-19!
On April 29th, Jeff Bezos’s corporation published its financial results in Q1, 2021. It became known that in the pandemic year, the company earned more than in 2017-2019: $26.9 billion of net profit against $24.7 billion.
Important details of the report:
- Revenue: $108.5 billion, +44% (forecast - $104.5 billion).
- Return on stock: $15.79, +215% (forecast - $9.49).
- Net profit: $8.1 billion, +224%.
Forecast for the current quarter
In the nearest 3 months, the company is planning to increase its revenue by 24-30% to $110-116 billion, and the operational profit – by 30-38% to $8 billion. Wall Street analysts expect the revenue to remain under $108.5 billion.
Market reaction and tech analysis
The market price of the IT giant has grown by 47% since a year ago, reaching $1.74 trillion. Amazon (NASDAQ: AMZN) shares on Thursday closed at $3471.31, growing by 0.37%.
The quotations keep trading above the 200-days MA. Comparing this one to the previous moves, I suppose that a correction will bring the price back to the broken level of $3434.00.
Then after a test of the support line, the quotations should go on growing. The aim is quite hard to predict because the price is renewing the highs, being high as it is.
Summing up
This week, we saw the reports about Q1 of Alphabet, Apple, Facebook, Amazon, and Microsoft. All five reports were impressive, which led to the growth of the NASDAQ and S&P 500 indices. The latter grew by 0.8% to 4211.47 points during a week and the former – by 0.5% to 14082.55 points.
