We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Investment Ideas feature highlights: Tesla and Amazon
Read MoreHide Full Article
For Immediate Release
Chicago, IL – November 25, 2024 – Today, Zacks Investment Ideas feature highlights Tesla (TSLA - Free Report) and Amazon (AMZN - Free Report) .
These Magnificent 7 Reports Impressed Investors: AMZN, TSLA
The Q3 reporting cycle has officially ended for the Mag 7 group following the release of Nvidia’s quarterly results yesterday. The group posted strong growth, though post-earnings reactions weren’t favorable for all.
But reports from Tesla and Amazon did spark post-earnings positivity, with shares of each seeing positive price action following their releases.
But what was there to like in each respective release? Let’s take a closer look.
Amazon's AWS Results Impress
Concerning headline figures in Amazon’s quarterly release, the company exceeded both consensus EPS and sales expectations handily. EPS grew a sizable 70% year-over-year, whereas sales of $60 billion reflected an 11% climb from the year-ago period.
However, the real highlight of the results was the AWS results. AWS sales jumped 19% year-over-year to $27.5 billion, matching the same growth pace we saw last quarter. While the growth pace didn’t reflect an acceleration, the results overall confirm underlying momentum.
Further, the profitability picture for AWS jumped higher, with operating income of $9.3 billion well above the $5.4 billion mark in the year-ago period. Below is a chart illustrating the company’s AWS results against our consensus expectations, with the recent $27.5 billion print falling $127 million short.
Like Tesla, analysts raised their earnings expectations for Amazon following the favorable release, with the stock boasting a Zacks Rank #2 (Buy).
Overall, the company’s dominant stance in the cloud paints a bright outlook for the company, particularly in the midst of this AI frenzy that we’ve all become accustomed to. AWS is the dominant player in the cloud computing market, flexing a significant market share globally. It provides various services, including computing power, storage, databases, and AI/ML tools.
Tesla Sees Higher Profitability
While EV delivery/production numbers were important, the real highlight of the release that caused shares to perk up was margin expansion, with the company’s gross margin expanding nicely to 19.8% vs. a 17.9% print in the same period last year.
Notably, Tesla reported its lowest-ever level of cost of goods sold (COGS) per vehicle throughout the period, which bodes favorably for upcoming periods as well. Analysts have raised their EPS expectations across the board following the release, with the stock now holding the highly-coveted Zacks Rank #1 (Strong Buy).
The stock’s current momentum is undeniable, partly boosted by the recent U.S. election. Growth is expected to resume in its next fiscal year, with our consensus FY25 expectations suggesting 30% EPS growth on 16% higher sales.
Bottom Line
With Nvidia's quarterly release finally out of the way, the Q3 reporting cycle for the broader Mag 7 group has ended. The group overall posted strong growth, though Amazon and Tesla were among the few to see post-earnings momentum.
A notable boost in profitability helped vault Tesla shares higher, with the stock also benefiting from the recent U.S. election. The company overall remains the prime selection for EV exposure, with growth expected to return in a big way during its next fiscal year.
A strong showing from AWS in Amazon’s release aided the bullish action post-earnings, with the results reflecting underlying momentum. The company remains a solid pick for the AI frenzy given its dominant cloud computing stance, with an upcoming holiday season also potentially providing near-term tailwinds.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Investment Ideas feature highlights: Tesla and Amazon
For Immediate Release
Chicago, IL – November 25, 2024 – Today, Zacks Investment Ideas feature highlights Tesla (TSLA - Free Report) and Amazon (AMZN - Free Report) .
These Magnificent 7 Reports Impressed Investors: AMZN, TSLA
The Q3 reporting cycle has officially ended for the Mag 7 group following the release of Nvidia’s quarterly results yesterday. The group posted strong growth, though post-earnings reactions weren’t favorable for all.
But reports from Tesla and Amazon did spark post-earnings positivity, with shares of each seeing positive price action following their releases.
But what was there to like in each respective release? Let’s take a closer look.
Amazon's AWS Results Impress
Concerning headline figures in Amazon’s quarterly release, the company exceeded both consensus EPS and sales expectations handily. EPS grew a sizable 70% year-over-year, whereas sales of $60 billion reflected an 11% climb from the year-ago period.
However, the real highlight of the results was the AWS results. AWS sales jumped 19% year-over-year to $27.5 billion, matching the same growth pace we saw last quarter. While the growth pace didn’t reflect an acceleration, the results overall confirm underlying momentum.
Further, the profitability picture for AWS jumped higher, with operating income of $9.3 billion well above the $5.4 billion mark in the year-ago period. Below is a chart illustrating the company’s AWS results against our consensus expectations, with the recent $27.5 billion print falling $127 million short.
Like Tesla, analysts raised their earnings expectations for Amazon following the favorable release, with the stock boasting a Zacks Rank #2 (Buy).
Overall, the company’s dominant stance in the cloud paints a bright outlook for the company, particularly in the midst of this AI frenzy that we’ve all become accustomed to. AWS is the dominant player in the cloud computing market, flexing a significant market share globally. It provides various services, including computing power, storage, databases, and AI/ML tools.
Tesla Sees Higher Profitability
While EV delivery/production numbers were important, the real highlight of the release that caused shares to perk up was margin expansion, with the company’s gross margin expanding nicely to 19.8% vs. a 17.9% print in the same period last year.
Notably, Tesla reported its lowest-ever level of cost of goods sold (COGS) per vehicle throughout the period, which bodes favorably for upcoming periods as well. Analysts have raised their EPS expectations across the board following the release, with the stock now holding the highly-coveted Zacks Rank #1 (Strong Buy).
The stock’s current momentum is undeniable, partly boosted by the recent U.S. election. Growth is expected to resume in its next fiscal year, with our consensus FY25 expectations suggesting 30% EPS growth on 16% higher sales.
Bottom Line
With Nvidia's quarterly release finally out of the way, the Q3 reporting cycle for the broader Mag 7 group has ended. The group overall posted strong growth, though Amazon and Tesla were among the few to see post-earnings momentum.
A notable boost in profitability helped vault Tesla shares higher, with the stock also benefiting from the recent U.S. election. The company overall remains the prime selection for EV exposure, with growth expected to return in a big way during its next fiscal year.
A strong showing from AWS in Amazon’s release aided the bullish action post-earnings, with the results reflecting underlying momentum. The company remains a solid pick for the AI frenzy given its dominant cloud computing stance, with an upcoming holiday season also potentially providing near-term tailwinds.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.