Good Evening! There was a decline in U.S. stocks, with the Nasdaq leading the way, as a result of tech companies starting to showcase a week filled with earnings reports.
The S&P 500 declined by 1.58%, while the Dow Jones dropped by 1.01%. The Nasdaq Composite fell the most by 1.98%.
AD REVENUE COMING BACK?
Alphabet (GOOG, GOOGL) reported earnings for the first quarter, with revenue and earnings per share exceeding expectations and an enormous $70 billion stock buyback being authorized.
- Revenue: $69.7 Billion vs. $68.96 Billion Expected
- Google Ad Revenue: $54.55 Billion vs. $53.75 Billion Expected
- Youtube Ad Revenue: $6.69 Billion vs. $6.64 Billion Expected
- Earnings Per Share: $1.17 vs. $1.08 Expected
The importance of the Ad Revenue… Alphabet had previously struggled due to the industry-wide digital ad downturn over the past year. However, this was not the case with the Ad revenue beats and was a significant victory for the company.
What about AI? Don’t worry, we have you covered! Google has also been at the forefront of the AI battle in the sector against ChatGPT. As the answer to the battle, Bard has underwhelmed, and even some have begun to doubt Google’s AI capabilities in recent months. However! A number of adjustments are being made to the company’s AI approach to suit its evolving business plan, including the combination of two AI teams, Google Research’s Brain section, and DeepMind.
TOP 10!
Ever since LVMH reached the historic market valuation yesterday, Europe now has a company with a $500 billion market value. With this achievement, the French multinational that is most known for its upscale alcohol and extravagant clothing that scream “affluence” surpassed it to rank as the tenth biggest firm in the world.
Did you know… According to Bloomberg, selling status is to France what big tech is to the US—three of the top four most valuable businesses in France are luxury goods firms. And LVMH is France’s Apple: Both industrial behemoths offer expensive products, continue to grow despite economic downturns, and create some of their home nations’ most-known brands.
Looking ahead… LVMH recently issued a warning regarding a slowdown in the growth of the US market. The demand for cognac and leather goods has been particularly impacted. Consequently, some investors are concerned that the stock may be adversely affected if the economic downturn worsens.