Shesa's Weekly Updates - 1|28|24

Q4 GDP increased at a 3.3% vs. 2%. It was much much beyond Wall Street expectations. For the whole year of 2023 it was up 2.5%. A strong pace of consumer spending helped drive the expansion, as did government spending.

The Core prices for personal consumption expenditures (PCE) rose 2% for the period, while the headline rate was 1.7%.

Netflix (NFLX) kicked-off big tech earnings for Q4. Here is the result.
  • Earnings: $2.11 per share vs. $2.22 per share expected.
  • Revenue: $8.83 billion vs. $8.71 billion expected.
  • Total paid memberships: 260.8 million vs. 256 million expected. It newly added 13.1 million subscribers.

Tesla (TSLA) reported Q4 earnings that missed estimates and issued a downbeat full-year production outlook.  It earned 0.71 vs. 0.73 estimated. Revenue came at $25.2 billion vs..$25.6 billion estimated. The profit was impacted by costs associated with increasing Cybertruck production and spending on research and development and artificial intelligence projects. On the positive side, nonautomotive sales, including charging stations, residential solar roofs, and sales of battery-storage products to utilities, increased 4% to $3.6 billion in the quarter. The energy storage and Megapack batteries – had a 125% growth comparing to 2022. It ended 2023 with 54,892 charging ports, up from 42,419 in December 2022. The company did not provide any guidance. My View: Short term it may continue to struggle nut long term I still think it has lots of potential.


Intel (INTC): The company topped top and bottomline. However, the guidance was below the analysts estimate. It’s expected to generate a Revenue $12.2 billion to $13.2 billion on Q1 vs. $14.25 billion, according to data compiled by Bloomberg. Profit will be 13 cents a share, minus certain items, versus vs. 34 cents estimated. My view:  It may consolidate before picking up. 


Small Cap Rally: The large-cap S&P 500 is currently at all-time highs. However, the small-cap Russell 2000 is still in a bear market. This has never happened before. But wherever such situation has come as it stands today, the small cap stocks always rallied over the following year for more than 35%. So, I do expect some bounce in the small cap stock in next few weeks.


Microsoft (MSFT) is laying off about 1,900 employees in its gaming division, or 8% of its gaming workforce.


Expected Earning this week and stocks to watch: 

1/30/24: MSFT, GOOG

2/1: AAPL, AMZN,  META.


Next Week Key Economic Reports

Wednesday, 1/31/24: FOMC Interest Rate decision: I don’t think there will be any change in interest rate.

Friday, 2/2/24: January Job Report. Current expectation is 3.7%.




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