February Markets Report
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CONTENTS: (Sidebar on the right - desktop view)MAG-7 Earnings Reports (N/A)
Several of the largest technology and software companies report earnings, (In alphabetical order)
Alphabet (GOOG):
The parent company of Google, Alphabet, sank 9% following their Q4 earnings results. Earnings-per-share (EPS) beat estimates by 1.07%, with revenue targets slightly falling missing by (0.21%). Compared to Q4 of 2023, net-income was up 28.27% year-over-year. However, revenue from Google’s cloud business unperformed expectations after showing slowing growth. Additionally, Google provided guidance on the 2025 fiscal year, which contained plans to spend $75-billion in expenditures, which was significantly higher than the $58-billion predicted.
Amazon (AMZN):
Amazon remained relatively unchanged following their Q4 earnings results. Earnings-per-share (EPS) beat estimates by 25.29%, with revenue beating by 0.30%. Compared to Q4 of 2023, net-income was up 88.32% year-over-year. Unfortunately for Amazon, Q1 2025 guidance fell short, falling within a range of 151B to 155.5B compared to the 158.56B expected. Guidance for revenue additionally showed the slowest growth expectations in Amazon’s history.
Apple (AAPL):
Apple remained relatively unchanged following their Q4 earnings results. Earnings-per-share (EPS) beat estimates by 2.26%, with revenue beating by 0.22%. Compared to Q4 of 2023, net-income was up 7.10% year-over-year. Disappointment came in the news of declining iPhone sales compared to prior years. However recently, Apple announced the release of more cost-effective iPhone’s with the release of the new “iPhone 16E”, which could expand Apple’s market-share dominance to higher levels.
Meta (META):
The parent of mainstream social media apps, including Instagram, Facebook, and Whatsapp, Meta rallied in the days follow their Q4 earnings results. Earnings-per-share (EPS) beat estimates by 19.00%, with revenue beating by 2.96%. Compared to Q4 of 2023, net-income was up 48.64% year-over-year. Meta additionally disclosed plans to invest $65-billion in 2025. Meta is currently the top performing MAG-7 company YTD, boasting an 8.87% increase compared the NASDAQ’s 5.49% decline so far this year. Much of Meta’s recent success has been affiliated with their shift and advancements in AI, causing them to have bounced back from extreme lows faced in late-2022.
Microsoft (MSFT):
Microsoft fell (6.18)% following their Q4 earnings results. Earnings-per-share (EPS) beat estimates by 3.47%, with revenue beating by 1.20%. Compared to Q4 of 2023, net-income was up 10.24% year-over-year. Results from Azure, Microsoft data center wing, came in below expectations, considering the extreme sum of investment Microsoft made to build new data centers. Microsoft has positioned itself among many emerging AI companies, pouring large investments into OpenAI and opening Azure offerings to the newly acclaimed DeepSeek.
NVIDIA (NVDA):
NVIDIA, a forerunner & favorite within the stock market, fell (8.48)% following their Q4 earnings results. Earnings-per-share (EPS) beat estimates by 5.22%, with revenue beating by 3.08%. Compared to Q4 of 2023, net-income was up 79.50% year-over-year. Additionally, NVIDIA provided guidance for Q1 2025’s report, projecting revenue 2.14% higher than expectations. The rest of the technology sector – NASDAQ – was down 2.78% the day after the reported earnings.
Tesla (TSLA):
Tesla remained relatively unchanged following their Q4 earnings results. Earnings-per-share (EPS) missed estimates by (4.83)%, with revenue missing by (5.25)%. Compared to Q4 of 2023, net-income was down (70.74)% year-over-year. Tesla announced a delivery count of 459,000 vehicles from Q4. Tesla’s shares up 12.13% since the 2024 election and have seen high volatility in recent months.
YTD graph of performances of MAG 7 companies
EXTRA: What does (X)% mean VS X% ?
Commonly, in report data-sets & presentations, companies will use (parenthesis) to denote losses. This means (12.34)% would translate to a -12.34% loss/miss.
NVIDIA Adjusts Investments in AI (02/14)
Five years ago, who would’ve known NVIDIA would be shaking markets with simple portfolio adjustments?
On February 14th, the $3T semiconductor company, NVIDIA, who create essential GPU’s used in AI computing and data centers, disclosed their latest investment positions in multiple AI startups, causing the companies included in the portfolio to swing rapidly.
NVIDIA disclosed a new position in “WeRide”, a Chinese self-driving vehicle technology startup company. The position is worth $36.7-million as of 02/27/2025. In the days following the announcement, shares of WeRide were at one point up 135%.
Furthermore, NVIDIA disclosed a new position in a European data center and self-driving technology company, “Nebius Group”. The position is worth $38.4-million as of 02/27/2025. Shares of Nebius are up 45.75% since December, when the investment was initially disclosed.
Not all of the portfolio adjustments were additions, however. NVIDIA also disclosed the closure of two of its positions within the companies “SoundHound” and “Serve Robotics”, causing their shares to plummet in value.
Lastly, NVIDIA disclosed its reduction of stake in the semiconductor patent company, “Arm Holdings”. Arm Holdings earns royalties from chips across many semiconductor companies, including Amazon, Apple, AMD, Microsoft, NVIDIA, and Qualcomm. Roughly 90% of Arm Holdings’ stake is controlled by the holding company “Softbank”.
Investments from larger companies in smaller-to-medium companies is typically a positive sign.
Novo Nordisk Resolves Drug Shortage (02/21)
Weight loss pharma company, Novo Nordisk (NVO), resolves shortage
Novo Nordisk, a company within the pharmaceutical sector, creates weight loss and diabetes treatments, including the famous brands “Ozempic” and “Wegovy”. As of writing, they are Europe’s second largest company by market-cap.
On Friday the 21st, the US FDA reported that the main ingredient in Novo Nordisk’s products are now no longer in shortage.
For context, any drugs that contain ingredients determined to be in shortage allow for the creation of compounded, “copy-cat” versions.
The presence of compounded versions hurt Novo Nordisk, as competing company “Hims & Hers Health” was previously allowed to mass produce compounded versions of Ozempic and Wegovy, without FDA approval, resulting in customers leaving Novo Nordisk in favor of Hims & Hers Health.
Following this announcement,Hims & Hers Health shares dropped more than 20%, as it would likely force them to cease manufacturing of the compounded drugs. As for Novo Nordisk, this marks a win for the Danish based pharma company. Shares were up 5.18% following the announcement.
Check out our personal analysis of Novo Nordisk? NOVO NORDISK RESEARCH DOCUMENTATION
Apple to Invest $500B (02/24)
Apple (AAPL) announces $500B investment plan
Apple just announced a 500 billion dollar commitment over the next four years.
“We are bullish on the future of American innovation, and we’re proud to build on our long-standing US investment with this $500-billion commitment to our country’s future”
- Tim Cook (CEO of Apple)
As part of the commitment, Apple will open new manufacturing facilities across the US, starting with the creation of an mega-facility in Houston, Texas. In addition, Apple plans to boost research and development (R&D) spending, which is crucial for technology or software companies.
Apple disclosed plans to invest in education via the “New Silicon Initiative”, which seeks to expand efforts for “hardware engineering and silcon chip design” across colleges in the US.
Research and development spending is key for companies aiming at growth.
Market Declines Over Fears (02/27)
February has been relatively rough for the markets.
NASDAQ Performance YTD (Jan 1 - Feb 27th)
Consumer confidence declined this month, with the drop being the largest in four years. This was likely caused by fears over reemerging inflation, with the current rate sitting higher than the Federal Reserve’s target of 2% inflation. The Federal Reserve’s next FOMC meeting is in March, where a decision on current interest rates could be pivotal.
The market is currently red YTD, with volatility picking up once again – caution.
- Conclusion -
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