Weekly Financial Bites

Microsoft: Financial Highlights and Strategic Investments
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Financial Highlights: Microsoft's Q3 2023 earnings report surpassed Wall Street expectations, posting an EPS of $2.71 against the estimated $2.07. The tech giant also reported a 21% YoY increase in revenue, reaching $45.3 billion.  

Cloud and AI Performance: Microsoft's Azure cloud business is gaining market share, and its investments in AI through OpenAI are beginning to yield returns. This strategic focus is diversifying the company's revenue streams and positioning it as an industry leader.  

Stock Performance: The stock is currently priced at $330.53 with a market cap of $2.46T. Over the past month, the stock has risen by 4.09%, and it has seen a 31.86% increase since last year.  

Market Sentiment and Future Outlook: The strong quarterly performance and strategic investments in cloud and AI have boosted market confidence in Microsoft. The company is well-positioned for sustained growth, making it a compelling option for educated investors.

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Alphabet: Revenue Growth and Cloud Challenges
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Financial Highlights: Alphabet's Q3 2023 earnings report beat expectations with revenue reaching $64.1 billion against the $63 billion estimate. However, the cloud division fell short, reporting earnings of $8.4 billion.  

Cloud Business: Despite strong overall revenue, Alphabet's cloud business underperformed, raising concerns about its ability to compete effectively in a market dominated by Microsoft and Amazon.  

Stock Performance: The stock is currently priced at $138.81 with a market cap of $1.76T. It has increased by 5.87% over the last month but has seen a significant drop in the pre-market to $129.43.  

Market Sentiment and Future Outlook: The underwhelming performance in the cloud division has led to cautious market sentiment. Alphabet needs to bolster its cloud business to maintain investor confidence and stay competitive.

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Visa: Fiscal Performance and Market Positioning
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Financial Highlights: Visa's Q3 2023 earnings report exceeded expectations, with a fiscal fourth-quarter net income of $4.7 billion and an 11% growth in net revenue.  

Strategic Partnerships: Visa's partnerships, particularly with fintech companies, surged by 25% YoY, signaling a focus on diversification and technological innovation.  

Stock Performance: The stock is currently priced at $234.65 with a market cap of $477.60B. It has seen a modest increase of 0.55% over the past month and a more substantial growth of 20.72% since last year.  

Market Sentiment and Future Outlook: The strong fiscal performance and optimistic outlook indicate a promising future for Visa. However, the company faces the challenge of meeting high expectations, making it a stock to watch for educated investors.

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^Amazon:

Financial Highlights and Strategic Investments:

Amazon's Q3 2023 financial report exceeded market forecasts, with an EPS of $0.94 compared to the expected $0.58. The e-commerce behemoth also saw a 13% YoY increase in net sales, totaling $143.08 billion.
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Cloud and AI Performance:

Amazon Web Services (AWS) is showing signs of stabilization, reporting a 12% YoY growth in net sales at $23.1 billion. CEO Andy Jassy highlighted the role of AI in AWS's future, stating that it represents a market opportunity worth "tens of billions."
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Advertising Business:

The advertising sector of Amazon reported a 26% growth, contributing significantly to the company's diversified revenue streams and helping its profit more than triple.
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Stock Performance:

Amazon's stock is currently priced at $119.57 with a significant 43% increase since last year. After the Q3 report, the stock climbed by as much as 5% in after-hours trading.
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Market Sentiment and Future Outlook:

The robust Q3 performance in both AWS and advertising has strengthened market confidence in Amazon. With strategic investments in cloud and AI, the company is well-positioned for sustained growth, making it a compelling investment option for educated investors.

HSBC's Q3 profit after tax surged 235% to $6.26 billion, yet fell short of market expectations.

Financials: Core Numbers

‍The bank's Q3 profit before tax reached $7.7 billion, missing analysts' $8.1 billion estimate.

Costs: Rising Concerns

‍‍Operational costs are slated to increase by up to 5% this year, exceeding prior forecasts.

Market: Investor Impact‍

‍HSBC's Hong Kong-listed shares dipped 0.26%, but a new $3 billion share buyback was announced. A third interim dividend of 10 cents per share was declared, totaling 30 cents for the year.

Conclusion: Mixed Results

‍HSBC's Q3 financials revealed both gains and challenges, notably missing market estimates despite soaring profits.

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