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Microsoft Briefly Surpasses $3 Trillion Market Cap; Tesla Falls Short in Q4

Jan 25, 2024 - techtimes.com
Microsoft briefly surpassed a market capitalization of $3 trillion during Wednesday's intraday trading, thanks to a more than 1% increase in its share price. This was largely due to investor confidence in its artificial intelligence efforts, particularly with OpenAI. The tech giant's shares have climbed almost 7% year to date. Analysts predict Microsoft's fiscal second-quarter profits to surpass estimates due to its generative AI strength, and Morgan Stanley analysts have increased their price target to $450.

In contrast, Tesla's Q4 profits and revenue fell short of estimates, with vehicle sales rising only 1% year-over-year. The company's adjusted earnings were 71 cents per share, below expectations of 74 cents, and revenue was $25.17 billion, below the expected $25.6 billion. Tesla attributed the sluggish auto sales growth to lower vehicle average selling prices after global price cuts. Despite these challenges, Tesla delivered 484,507 vehicles in Q4 and over 1.8 million in 2023.

Key takeaways:

  • Microsoft briefly exceeded a market capitalization of $3 trillion during Wednesday's intraday trading, with shares climbing almost 7% year to date, largely due to investor confidence in its artificial intelligence efforts.
  • Apple recovered the top spot on Wednesday with a $3.01 trillion market worth, despite slowing iPhone demand, particularly in China.
  • Microsoft is expected to announce record profits of $61 billion in revenues on Jan. 30, with its generative AI strength predicted to surpass estimates.
  • Tesla's Q4 profits and revenue were below estimates, with vehicle sales rising only 1% year-over-year, and the company anticipates potentially lower vehicle volume growth in 2024 as it focuses on launching its 'next-generation vehicle'.
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