Tesla Inc. (NASDAQ: TSLA)
Tesla Inc. (NASDAQ: TSLA) delivered a strong performance in the third quarter with the much-anticipated earnings results for Q3 2024.
Fueled by growth in vehicle deliveries and a record gross margin from its energy business, Tesla reported an 8% year-on-year increase in total revenue, reaching $25.2 billion. Operating income also rose year-on-year to $2.7 billion in Q3, resulting in a profit margin of 10.8%.
Tesla believes it is positioned between two waves of growth, following the global expansion of the Model 3/Y platform. The next wave is expected to be driven by advances in autonomy and the introduction of vehicles based on their next-generation platform.
By focusing on expanding their vehicle and energy product lineup, reducing costs, and investing in AI projects, Tesla aims to capitalize on the ongoing transition in the transportation and energy industries.
In its earnings call, CEO Elon Musk projected a 20% to 30% growth in vehicle sales for 2025.
Tesla is full steam ahead as it plans to ramp up production in 2025, with Musk hinting at the launch of a ride-hailing platform during the “We, Robot” event on 10 October 2024.
Alphabet Inc. (NASDAQ: GOOG, GOOGL)
Alphabet Inc. (NASDAQ: GOOG, GOOGL) turned in stronger than expected earnings in their third quarter result led by great performance in Search, Cloud and YouTube.
Consolidated Alphabet revenues in Q3 2024 increased 15%, or 16% in constant currency, year over year to $88.3 billion reflecting strong momentum across the business.
Alphabet generated strong revenue growth in the quarter with revenue from Google Services and Google Cloud increased 13% to $76.5 billion and 35% to $11.4 billion respectively.
CEO Sundar Pichai remarked in its earnings call that the company’s differentiated full stack approach to AI puts the Alphabet in a position to lead in the era of AI.
Its robust AI infrastructure coupled with world class deep, technical AI research teams and global reach creates a “virtuous cycle” that drives success for both the company and its customers.
The search engine giant is turning to AI to better improve efficiency in cost cutting efforts, YouTube recommendations and productivity in its Google Workspace and Google Cloud platforms.
At market close on Wednesday 30 October 2024, shares of Google’s parent Alphabet climbed to its all time high since July.
Meta Platforms Inc (NASDAQ: META)
Bolstered by AI progress in its apps and businesses, Meta Platforms Inc (NASDAQ:META) beat analyst expectations in their third quarter results.
The social media giant reported an earnings per share of $6.03 and total revenue of $40.6 billion, a 19% year on year increase.
Total expenses were up 14% at $23.2 billion and capital expenditure of $9.2 billion, Meta has warned of “a significant acceleration in infrastructure expense growth next year as we recognize higher growth in depreciation and operating expenses of our expanded infrastructure fleet.”
This forecast comes as Meta ramps up investments in AI development and infrastructure.
Meta said it is expecting fourth-quarter revenue to be between $45 billion and $48 billion.
Dive into the future of technology with our newest FREE report, “The Rise of Titans.” Discover how the big 7 US tech stocks can be your ticket to huge long-term gains. Download your copy today and see how easy it is to supercharge your portfolio.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Joanna Sng owns shares of Alphabet and Meta Platforms.
