Earnings Review: Apple, Amazon, Meta, Microsoft, Samsung, SK Hynix - targets smashed!
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This week's AI earnings announcements blew our (and the market's) minds!
The week began with the AI selloff extending, before big tech stocks reinvigorated a rebound in chipmakers and AI-linked stocks.
This roller-coaster price action perhaps is best summed up by the tech-heavy NAS100 index's performances:
July 20 (and reiterated on the 27th): we cited the 100-day simple moving average (SMA) support level
July 27 and 28: duly respected that 100-day SMA support (markets initially didn't dare to push prices much lower below the 100-day SMA)
July 29: sinks to a 3-month low …
July 30: quickly rebounds back above 100-day SMA
July 31, at time of writing: NAS100 extending gains
In other words ...
Our 100-day SMA downside target may well have been as good as it got for "shorts" (those hoping NAS100 would fall).
Otherwise, bears/shorts may have risked having profits(when prices fall) being reduced by the subsequent rebound in the latter part of the week.
RECAP (published July 27th): NAS100 included among "3 Assets to Watch"
Still, there's a lot to unpack this week.
We now sift through the big winners and losers after their respective earnings announcements - all of which totally decimated past the market's forecasted post-earnings moves:
(NOTE: This report is written prior to the US market open on Friday, July 31st - so there could be more notable stock moves during the regular cash session).
1) Microsoft makes stock market history!
On Thursday, July 30th, Microsoft's stock prices surged 15.5% - its biggest one-day gain since October 2008.
Microsoft's market cap also grew by US$ 450 billion - the biggest 1-day market cap gain by any stock in history!
For context, that US$ 450 billion market cap growth in just 1 day is LARGER than these companies' valuations:
Bank of America (market cap: US$ 438.1 billion)
Chevron (market cap: US$ 383 billion)
Coca-Cola (market cap: US$ 380.7 billion)
Morgan Stanley (market cap: US$ 330.2 billion)
Goldman Sachs (market cap: US$ 314.2 billion)
Netflix (market cap: US$ 304.7 billion)
Palantir (market cap: US$ 293.1 billion)
Alibaba (market cap: US$ 278.8 billion)
TAP HERE for initial targets drawn on July 28th.
What drove MSFT's stock price reaction?
Microsoft's cloud business (Azure) grew at its fastest pace since 2022, faster than anyone expected, proving that its big bets on AI are actually bringing in real money.
2) Amazon skyrockets 13% to 2-month high!
If these gains hold till the closing price today (Friday, July 31):
This would mark Amazon's biggest 1-day advance since February 2022!
TAP HERE for initial targets drawn on July 28th.
What drove AMZN's stock price reaction?
Amazon's cloud division (AWS) grew 37% - its fastest pace in 18 quarters - showing that AI demand is translating directly into real revenue for the company.
3) Meta fell to 4-month low!
Following its earnings report (after US markets closed on Wed, July 29), Meta tumbled 8% when US markets reopened on Thursday - reaching its lowest prices since late-March.
That 8% drop is its biggest 1-day loss since its previous earnings announcement - when it fell 8.5% on April 30th.
However, the subsequent and slight rebound has brought prices back to around our $553.00 downside target:
TAP HERE for initial targets drawn on July 28th.
What drove META's stock price reaction?
Despite beating its sales target for the quarter, investors were spooked because Meta is still spending enormous amounts of money on AI with no clear sign yet of when that spending will pay off.
Free cash flow - essentially the cash left over after expenses - fell to its lowest level in nearly four years, while Meta's forecast for next quarter's sales also came in below expectations.
4) Apple falling over 7%!
Apple is falling away from its record high, set for its biggest daily drop since the April 2025 market angst from President Trump's tariff announcements.
At the time of writing, its perps are testing support around its 50-day SMA - a widely followed technical indicator.
TAP HERE for initial targets drawn on July 28th.
What drove AAPL's stock price reaction?
The company warned that parts shortages and weaker-than-expected services revenue (like the App Store) will see slower growth next quarter.
Apple's forecast of 9-11% missed what Wall Street was hoping for - sales growth of more than 12%.
Also, revenue from China came in below expectations, even though Apple's iPhone and Mac sales were actually strong overall.
5) Samsung hits downside target, then smashes past upside target!
Samsung had something for everyone: it first dipped below our $137.00 downside target set on July 29th (which proved prudent), before then rebounding alongside other chip stocks.
TAP HERE for initial targets drawn on July 28th.
What drove Samsung's stock price reaction?
Even though Samsung reported a jaw-dropping 250-fold surge in chip profits driven by AI memory demand, the stock initially sold off because (greedy?) investors had already priced in big numbers.
The stock then recovered when the full details showed results well above estimates, illustrating a recurring pattern:
Samsung has beaten profit forecasts in 16 of the last 17 quarters, yet its shares declined on 10 of those occasions.
6) SK Hynix smashes past both downside and upside targets!
SK Hynix was the first among our highlighted 6 stocks to report its earnings this week.
Its perps plummeted before rebounding in tandem with other chip and AI stocks, and now appears headed to test its 21-day SMA for immediate resistance.
TAP HERE for initial targets drawn on July 28th.
What drove SK Hynix's stock price reaction?
Despite reporting record profits (operating profit up 557% year-over-year), investors fixated on the company's capex plans of US$ 31 billion this year.
Market fears of AI overspending stepped up another notch, sending this stock as much as 55% below its June 23rd peak.
So when US tech giants like Microsoft and Amazon confirmed that AI spending is alive and well, SK Hynix exploded upward!
DISCLAIMER:This article is provided for general information and reflects the author’s views only. It does not constitute investment advice, nor an offer or solicitation to buy or sell any financial instruments or digital assets. Your ability to access or use any products or services mentioned may be subject to the laws and regulatory requirements of your jurisdiction.