DeepSeek disruption looms over Microsoft, Tesla and Meta earnings call today
Global investors will focus on Microsoft, Tesla, and Meta as the US stock market continues its earnings season, attracting analysts and investors to assess individual company performance.
The ‘Magnificent Seven’ stocks — Microsoft, Tesla, and Meta — will be the focus of all attention for the global investors. The earnings season continues in the US stock market with tech giants Microsoft, Tesla, and Meta reporting financial results on January 29, 2025, attracting investors and analysts to gauge individual company performance.
The financial results and investments made in AI initiatives will be rigorously examined, particularly in light of the recent disruption caused by the Chinese start-up business DeepSeek. The DeepSeek development interests investors as major tech companies are investing heavily in AI chips.
Investors’ primary and most pressing worry is how much DeepSeek would have spent in comparison to the multibillion-dollar expenditures made by tech titans.
DeepSeek, a low-cost and open-source AI model, is being debated in the AI community due to its perceived cost advantage. According to Elon Musk, the CEO of X and Tesla, the startup artificial intelligence company DeepSeek might own about 50,000 Nvidia Hopper GPUs. This is in contrast to the 10,000 A100s that DeepSeek claims to have.
Bernstein analyst Stacy Rasgon stated that the reasoning model was not trained for 5 million dollars, and the exact cost of the training is unknown.
Expect some real answers in the conference calls of Microsoft, Tesla, and Meta after they release their financial results.
DeepSeek’s earnings impact is unlikely in today’s earnings results, but Microsoft, Tesla, and Meta’s earnings could calm nerves for the equity market investors.
Tesla will post its financial results for the fourth quarter of 2024 after market close on Wednesday, January 29, 2025. At that time, Tesla will issue a brief advisory containing a link to the Q4 2024 update, available on Tesla’s Investor Relations website. Tesla management will hold a live question-and-answer webcast that day at 4:30 p.m. Central Time (5:30 p.m. Eastern Time) to discuss the Company’s financial and business results and outlook.
Tesla will announce net income and cash flow results along with the rest of the financial performance when they announce Q4 earnings.
In the fourth quarter, Tesla produced approximately 459,000 vehicles, delivered over 495,000 vehicles and deployed 11.0 GWh of energy storage products – a record for both deliveries and deployments.
Tesla shares have surged over 85% since October 23rd’s quarterly release, with market participants believing competitive challenges are behind the company’s success. The upcoming release will likely validate this view.
Meta Platforms (NASDAQ: META) fourth quarter and full year 2024 financial results will also be released after market close on Wednesday, January 29, 2025.
Meta will host a conference call to discuss its results at 2:00 p.m. PT / 5:00 p.m. ET the same day. The live webcast of the call can be accessed at the Meta Investor Relations website at investor.fb.com, along with the company’s earnings press release, financial tables, and slide presentation.
Microsoft Corp. will also publish fiscal year 2025 second-quarter financial results after the close of the market on Wednesday, January 29, 2025. A live webcast of the earnings conference call will be made available at 2:30 p.m. Pacific Time.
Microsoft faces a capex overhang due to its heavy AI infrastructure investments without a clear monetization plan, causing market concern.
The two big casualties of the DeepeSeek emergence has been Broadcom and Nvidia. Broadcom is anticipated to release its results in March, while Nvidia may publish in late February.
Apple reports results Thursday, followed by Alphabet and Amazon next week.