Tech stocks showed mixed results on Thursday, as some of the biggest names in the industry reported their quarterly earnings. Meta Platforms, formerly known as Facebook, soared after beating expectations and announcing a dividend and a stock split. Atlassian, the Australian software company, plunged after missing estimates and lowering its guidance. Amazon and Apple also reported their results, with mixed reactions from the market.
Meta Platforms, the social media giant that recently changed its name from Facebook, surprised the market with a strong earnings report and a dividend announcement. Meta reported a 17% increase in revenue to $34.1 billion, and a 20% increase in net income to $9.2 billion, for the fourth quarter of 2023. Both figures beat the analysts’ estimates of $33.8 billion and $8.6 billion, respectively. Meta also announced its first-ever quarterly dividend of 50 cents per share, and a 10-for-1 stock split, which will take effect on February 14.
Meta’s earnings were driven by a 13% increase in its daily active users to 2.1 billion, and a 12% increase in its average revenue per user to $16.49. Meta also saw a strong growth in its other businesses, such as Instagram, WhatsApp, Messenger, Oculus, and Workplace. Meta’s founder and CEO, Mark Zuckerberg, said that the company’s name change reflected its vision to build the metaverse, a virtual reality platform that connects people, places, and things.
Meta’s stock soared 18% in after-hours trading, reaching a record high of $1,200 per share. Meta’s market capitalization rose to $3.4 trillion, making it the most valuable company in the world.
Atlassian Disappoints with Weak Earnings and Guidance
Atlassian, the Australian software company that makes products for collaboration and project management, disappointed the market with a weak earnings report and a lower guidance. Atlassian reported a 26% increase in revenue to $621 million, but a 43% decrease in net income to $69 million, for the second quarter of its fiscal year 2024. Both figures missed the analysts’ estimates of $624 million and $95 million, respectively. Atlassian also lowered its guidance for the third quarter, expecting revenue of $635 million to $645 million, and net income of $70 million to $75 million, below the consensus of $648 million and $96 million, respectively.
Atlassian’s earnings were hurt by a slowdown in its cloud migration, as some of its customers faced challenges in moving from its server-based products to its cloud-based products. Atlassian’s co-founder and co-CEO, Scott Farquhar, said that the company was investing in its cloud platform, and expected to see a faster growth in the future. Atlassian’s co-founder and co-CEO, Mike Cannon-Brookes, said that the company was also working on its new products, such as Jira Work Management, Trello, and Point A.
Atlassian’s stock plunged 15% in after-hours trading, dropping to $250 per share. Atlassian’s market capitalization fell to $62 billion, losing its status as the most valuable Australian company.
Amazon and Apple Report Mixed Results
Amazon and Apple, two of the largest tech companies in the world, also reported their quarterly results on Thursday, with mixed reactions from the market. Amazon reported a 15% increase in revenue to $130.9 billion, and a 50% increase in net income to $8.9 billion, for the fourth quarter of 2023. Both figures surpassed the analysts’ estimates of $130.2 billion and $7.4 billion, respectively. Amazon also announced a 4-for-1 stock split, and a $100 billion share buyback program. Amazon’s earnings were boosted by a strong growth in its e-commerce, cloud, and advertising businesses, as well as its Prime membership and streaming services. Amazon’s founder and executive chair, Jeff Bezos, said that the company had a record holiday season, and that it was expanding its global footprint and its product offerings.
Amazon’s stock rose 5% in after-hours trading, reaching $4,000 per share. Amazon’s market capitalization increased to $2 trillion, making it the second most valuable company in the world.
Apple reported a 9% increase in revenue to $123.9 billion, and a 7% increase in net income to $28.8 billion, for the first quarter of its fiscal year 2024. Both figures beat the analysts’ estimates of $121.6 billion and $27.4 billion, respectively. Apple’s earnings were driven by a 10% increase in its iPhone sales to $71.4 billion, and a 24% increase in its services sales to $22.3 billion. Apple also saw a strong growth in its other products, such as the Mac, the iPad, the Apple Watch, and the AirPods. Apple’s CEO, Tim Cook, said that the company had a record quarter, and that it was innovating and creating new products and services for its customers.
Apple’s stock fell 2% in after-hours trading, dropping to $160 per share. Apple’s market capitalization declined to $2.6 trillion, making it the third most valuable company in the world.
