Meta Is Q4 Standout of Tech Trifecta

We got a trifecta of big tech earnings results today, with December quarter updates from Apple, Amazon and Meta Platforms. Of that group, Meta was the standout, reporting 25% growth in revenue to just above $40 billion, at the high end of what it had projected. Even better, Meta projected that revenue growth could accelerate further to as high as 29% in the first quarter, while the company declared a quarterly dividend for the first time. (That was a surprise, as Meta said in a securities filing a year ago: “We do not intend to pay cash dividends for the foreseeable future.”) Meta stock jumped 14% in after-hours trading to $451 a share. Investors seem to think Meta’s advertising slump and stock collapse are firmly in the rearview mirror. Well, maybe. 

Before we get to that, though, let’s look at the less striking numbers from Apple and Amazon. Amazon CEO Andy Jassy can be pleased. Amazon’s numbers showed the benefit of its cost cutting over the past 12 months, particularly in the U.S. The company reported an operating margin in its North American segment of 6.1%, the highest since early 2019, and compared favorably with a negative margin of 0.3% a year earlier. Apple, meanwhile, had another anemic quarter, with revenue growing just 2%. We should put that into perspective, though: It was the best quarterly growth Apple has reported in a year (for fiscal 2023, Apple’s revenue fell 2.8%). Helping lift performance in the quarter, a little, was a slight recovery in iPhone revenue, which grew 6% (in the 2023 fiscal year, iPhone revenue fell 2.4%). Apple stock fell 3% in after-hours trading, though, likely because Apple executives signaled revenue for the March quarter would be lower than it was a year ago. Investors appeared to be finally recognizing that the company is not growing.