📊 PRO: This Week in Visuals
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Today at a glance:
📱Apple: Services Shine
♾️ Meta: AI Spending Incoming
💳 Mastercard: New Partnerships
🧴 Procter & Gamble: Price Hikes
💊 Merck: Outlook Revision
⚙️ AMD: AI Chip Surge
📞 T-Mobile: FCF Expansion
📲 Qualcomm: Smartphone Recovery
🍟 McDonald: Rare Decline
💉 Pfizer: Paxlovid Raise
⚙️ AMR Holdings: Lukewarm Forecast
🧑💻 Intel: Massive Restructuring
🏝️ Booking: Soft Nights Growth
🧠 Lam Research: China Risk
🛩️ Boeing: New Leadership
🇪🇺 Airbus: Space Challenges
🌐 Arista Networks: Etherlink Optimism
☕️ Starbucks: Ongoing Turnaround
🤝 MercadoLibre: Soaring Profits
🏎️ Ferrari: Leveraging Customization
🏨 Marriott: Weaker Demand
💳 Paypal: Transaction Beat
📈 Coinbase: Bipartisan Support
☁️ Atlassian: Sales Transition
🌭 Kraft Heinz: Lower Volume
🍫 Hershey: Profit Decline
🎮 Electronic Arts: Bookings Drop
👾 Roblox: CFO Departure
💵 Block: Bottom Line Focus
🎤 Live Nation: Strong Attendance
📌 Pinterest: Muted Guidance
👻 Snap: Guidance Falls Short
🔥 Match Group: Tinder Slowdown
💻 Paycom: Buyback Incoming
📺 Roku: Gaining Streaming Share
🏦 SoFi: Revenue Shift
📦 Etsy: GMS Keeps Sliding
🧑⚕️ Teladoc: Struggling BetterHelp
🌿 Tilray: Craft Beer Boost
🍽️ Olo: Growth Acceleration
1. 📱Apple: Services Shine
Apple (AAPL)'s iPhone sales have declined for the second consecutive quarter, with a 1% drop in Q3 FY24 (June quarter). However, overall revenue grew by 5% to $85.8 billion ($1.4 billion beat), and earnings exceeded Wall Street expectations. The high-margin Services drove the outperformance, hitting a record revenue of $24.2 billion, a 14% year-over-year jump. Services made up 45% of Apple’s gross profit.
Investors hope the upcoming Apple Intelligence AI features, set to be released in the fall, will reignite iPhone sales. Apple is betting on AI to spur upgrades, especially in China, where sales have lagged. While the initial rollout of AI features has been delayed, analysts believe the new tools could still give iPhone sales a much-needed boost. With many customers due for an upgrade, Apple's AI gamble may just pay off.
2. ♾️ Meta: AI Spending Incoming
Meta (META)'s Q2 earnings report revealed aggressive AI spending plans for FY25. This strategy follows similar announcements from hyperscalers. Meta's stock soared anyway. This surge is attributed to better-than-expected revenue, with a 22% year-over-year increase in advertising revenue to $38.3 billion, outperforming Google Search and Amazon Advertising.
Despite losses at Reality Labs expanding to $4.5 billion, the company's year of efficiency is paying off, with increased revenue per employee and controlled headcount growth. The monetization of its AI offerings could take time to materialize, but AI is already proving to be a powerful tool for improving engagement and ad performance—Meta's core business.