Analysis of some of the most representative stocks in the tech sector: Tesla (TSLA) for electric mobility, Amazon for e-commerce, and Riot for AI.
Tesla (TSLA), stock sandwiched between good and bad
The company of the histrionic naturalized Texan entrepreneur gains 0.28% today and rises to €183.02.
Tesla is back to the levels of the end of last November when, before the big drop, the stock lost 37.5%.
The reasons for that performance were partly Elon Musk‘s selling of shares, market saturation, and finally the difficulty in finding raw materials.
Tesla released its quarterly report for the last quarter of 2022, which was surprisingly above expectations.
Falling prices of flagship models especially in Europe supported demand.
Demand and the boost given by the quarterly earnings report brought the electric company a +11% gain in the stock market.
Tesla’s revenues rose 37% to $24.32 billion, leaving Musk very confident about the company’s future.
The entrepreneur also spoke about the Cybertruck, which has begun pre-sales but will officially go on mass sale starting in 2024.
“In the short term we are accelerating our cost reduction projects and pushing towards higher production levels.”
Tesla recovered 48% of value in 2023 after a loss of 675 billion in market capitalization and a 65% match in share value.
Amazon ads keep stock afloat
Amazon can continue grinning this day in February by appreciating 2%, trading at €95.23.
The stock has lost 31% of market value in the past six months only to manage to recover a 50% loss in just 30 days this year.
The recently released quarterly report, covers Q4 of 2022 and showed revenues above expectations by $4 billion ($149.2 billion total).
EPS was below forecast which was $0.18 against a paltry $0.03 per share.
Operating income hit $2.7 billion against $3.5 billion in the same quarter a year earlier.
Cloud revenues definitely disappointed, AWS (Amazon Web Services) grew less than expected in sales.
AWS grossed 7.5% less than in Q3 2022.
Sales grossed $470 million less than the online sales company reported ($21.4 billion versus $21.87 billion expected).
How much it grossed from advertisements outperformed expectations, which were $11.38 billion.
Amazon grossed a whopping $11.56 billion (up 19% from 2021) edging out what Alphabet, Meta and Snap did.
The stock of Riot Blockchain (RIOT)
Riot Blockchain (RIOT) boasts a market cap of $1.2 billion, a figure much smaller than what it achieved in the past.
The protocol suffered the backlash of Bitcoin losses and was forced to write down its holdings in companies in the industry by $349.1 million:
“A $349.1 million goodwill impairment in connection with the acquisitions of Whinstone US and ESS Metron in 2021.”
The devaluation affected not only Riot but also other major BTC miners in the US.
One of the most damaged companies was Marathon Digital (MARA), which reported $127.6 million in losses during Q2 after the crypto world collapsed.
2022 was not the golden year for crypto miners especially for all those companies listed on Wall Street.
2021, unlike 2022, had allowed companies to lay the groundwork for the future and analysts believe it will be enough to get off to a great start this year.