Fast Money Blog- 10/27/23
This was a big week on Wall Street as several major companies, including Alphabet, Inc. (GOOG), Microsoft Corporation (MSFT), Visa, Inc. (V), Mastercard, Inc. (MA) and Amazon.com (AMZN) released their earning reports. They are all winners in the short and long term even though Wall Street reacted somewhat negatively.
If you’ve been a member of the Wealthy Investor program for 5 years or more, you know that we typically experience a short-term pull-back in the month of October.
Below are a few Wealthy Investor stocks that delivered outstanding earnings results this week, both on the top and bottom line.
Google reported Q3 2023 earnings with top-line revenue of $76.7 billion, up 11% year-over-year, as the company had significant growth in both its search engine and YouTube.
Here’s how the company’s revenue broke down:
Google’s Services sector, which includes Search and You Tube, rose 10% to $68 billion in the third quarter year-over-year. You Tube’s ad revenue of $7.5 billion in Q3 was particularly impressive as it represented a rise of over 12% year-over-year.
Google’s cloud revenue grew 22% year-over-year, taking in $8.4 billion in the quarter.
These numbers are historic across every sector.
Microsoft released its quarterly earnings for Q1 2024 with top-line revenue of $56.5 billion, an increase of 13% year-over-year.
Microsoft’s Intelligent cloud segment had quarterly revenue of $24.3 billion, up 19% year-over-year. This segment includes server products and cloud services such as Azure, whose revenue grew 28% year-over-year for the quarter.
The Productivity and Business Processes segment, which includes Dynamics, LinkedIn and the Office suite of products, brought in $18.6 billion, an increase of 13% year-over-year.
The company also reported a 4% growth in the sales of Windows operating-system licenses to device makers, ending a streak of five quarters of year-over-year declines.
Again, these are dream numbers.
Higher consumer spending during the past few months and the trend in using credit cards to purchase almost everything, led to strong growth for both Visa and Mastercard.
Visa posted top line Q4 2023 revenue of $8.6 billion, representing an increase of 10.6% year-over-year. The company saw strong spending by consumers, especially on both domestic and international travel.
Across the board Visa had outstanding numbers:
Payments volume increased 9% over the prior year.
Total cross-border volume increased 16% in the quarter year-over-year.
Processed transactions totaled $56 billion, an increase of 10% year over year
Visa raised its quarterly dividend nearly 16% to 52 cents a share. It also announced a $25 billion buyback. This means that Visa shares should rise significantly over the next 36 months.
Mastercard posted exceptional Q3 2023 earnings with revenue of $6.5 billion, up 14% year-over-year. Moreover, the company had a 28% boost in net income.
For Q3, the company saw GDV (gross dollar volume- a metric that represents the total dollar value of all transactions processed) of $6.7 trillion, up 13% year-over-year. In addition, cross-border payments volume grew 26%.
As of September 30th, 2023, Mastercard had issued 3.3 billion Mastercard and Mastercard branded cards, which includes gift and debit cards.
Visa and Mastercard's stock price will rise in the future. Both make great dates in both the long and short term.
Amazon’s Q3 earnings surpassed Wall Street expectations with top-line revenue of $143.1 billion, an increase of 13%.
Moreover, after a year of cost cutting, the company’s net income more than tripled to $9.9 billion.
Amazon’s advertising business continues to be a major revenue driver, bringing in over $12 billion for Q3, an increase of 26% from a year earlier.
Amazon Web Services had quarterly revenue of $23.1 billion, up 12% year-over-year.
Once again, this week we saw outstanding earnings results from all of the above S&P components.
Stay patient, stay disciplined.
Tyrone Jackson
The Wealthy Investor