Microsoft, Alphabet, Amazon Expect Robust Q4 Earnings: Analyst Dan Ives
Analyst Dan Ives from Wedbush has made an optimistic forecast for Big Tech’s Q4 earnings. He highlighted Microsoft, Alphabet, and Amazon as leaders in this expected robust performance. These companies have seen a surge in demand for their artificial intelligence (AI) enterprise services.
Comparing Tech Landscapes
Ives described the current tech environment as akin to mid-1996, indicative of a genuine internet boom characterized by real adoption and profitability. In contrast, he notes, this stands in stark opposition to the speculative bubble of 1999.
Indicators of Growth
The optimism for Q4 follows a strong performance by Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), which reported a remarkable 35% profit increase. This growth is attributed to global demand for semiconductors, reflecting ongoing strength in the AI industry.
Impact of Cloud Providers
- Neocloud providers like CoreWeave and Nebius Group are gaining validation for their specialized compute power.
Microsoft’s Financial Strategy
Microsoft’s pledge to cover its data center energy costs has contributed to predictions that it could achieve a $4 trillion valuation. This underlines the overall resilience of the tech sector.
Future Projections
Jack Fu, CEO of Draco Evolution, stated that as we approach 2026, the market will prioritize returns on investments over mere headlines. This insight reflects a shift in focus for cloud and technology companies moving forward.
Upcoming Earnings Reports
| Company | Earnings Report Date |
|---|---|
| Microsoft | January 28 |
| Alphabet | February 4 |
| Amazon | February 5 |
Stock Performance Overview
Over the past year, Microsoft stock has risen by 7.56%. Meanwhile, Alphabet and Amazon stocks witnessed significant growth of 71.37% and 7.94%, respectively. These figures showcase the ongoing potential and recovery in the technology sector.
