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NEWS
Not All Mag 7's Are Created Equal

The market climbed for the eighth straight, led by strength in tech stocks after Microsoft and Meta not only beat expectations for their earnings results, but raised their planned spending on AI development this year- it’s flush times for everything computer. After Apple and Amazon reported in the evening, the market showed it was happier with digital sales than gadget sales— both firms missed future guidance and warned imports would likely suffer this quarter.

Tomorrow’s job numbers will show any economic strength the FOMC will draw on when deciding rates next week. 👀

Today's issue covers double A earnings day, Tesla [allegedly] eyeing ousting Musk, and more. 📰

Here’s the S&P 500 heatmap. 7 of 11 sectors closed green, with tech (+1.47%) leading and healthcare (-3.8%) lagging.

And here are the closing prices: 

EARNINGS
Welcome To $A-Day 💢 

Apple and Amazon reported beats to their most recent fiscal quarters, but the market seemed to have spent its positivity on Microsoft and Meta’s results, and both stocks fell after hours.

The issue?

Both tech giants are also import giants— Amazon is a huge imported goods seller, and three-quarters of Apple’s leading products come from China.

Apple Breakdown:

Apple reported Q1 EPS of $1.65 on revenue of $95.36B. iPhone revenue came in at $46.8B, higher than $45.94B estimated. According to Yahoo Finance, analysts expected $5.22/share earnings on revenue of $42.36B.

It makes three-quarters of its revenue from iPhones, Macs, and tech in China. TD Cowen thinks it will cost them 6% of earnings this year. Expected to post nearly $90B in revenue for the June Quarter.

For forward guidance, analysts were looking for $1.47/share for the quarter, revenue at $89B for the quarter, and $07.26/share, $408.3B for the full year. The firm said it expects costs upwards of $900M on imports from tariffs, even while it works to move 100% of U.S. iPhone production to India ASAP. 📱 

Amazon Breakdown:

Amazon fell after reporting earnings and revenue beats, but forward guidance for the current quarter was low.

Sales grew 8.4%, but the firm gave a light forecast compared to high expectations.

Amazon reported Q1 EPS of $1.59 on revenue of $155.7B. Analysts expected earnings of  $1.37/share on revenue of $155.13B according to Yahoo Finance. For the current quarter, the firm sees operating income coming in $13-$17B, below analyst estimates.

AWS revenue, the hosting side that has little to do with tariffs, came mostly in line with estimates. In total sales, analysts wanted to see $166B for the coming quarter, but the firm projected $164B. 😅 📉 

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^{_{1. The underlying companies held by StartEngine Private Funds LLC, and StartEngine Private LLC (together, “StartEngine Private”) are not participating or involved in the offering. The availability of company information does not indicate that the company has endorsed, supports or otherwise participates with StartEngine Private or any of its affiliates. StartEngine Crowdfunding LLC purchases shares from current and former employees, early investors, and advisors of the companies and sells the shares to StartEngine Private for each offering. When you make an investment in a company on StartEngine Private, you are purchasing an interest in a series of StartEngine Private Funds LLC or StartEngine Private LLC, each a Delaware limited liability company (together the “Series LLCs”), which were created to hold shares of privately held companies. An investor will not directly own or hold shares of the private company but instead will own member interests in a series of the Series LLCs, which either directly or indirectly, will hold shares in the company. There may not be a one-to-one economic parity on the value of the Series LLCs interests and the underlying shares.  This is offered only to accredited investors per regulation D rules. 2. Based on our 2024 Form 10-K. This revenue growth has been driven by StartEngine Private, a new product line that offers funds in late stage companies. This product line has driven over $28 million of the $48 million in revenue from 2024. Net loss also increased to $16.5 million. To understand the impact on margins, see financials.}}

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