KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
The upcoming earnings season is shaping up to be a high-stakes moment for U.S. tech giants. Eyes are on Netflix, NVIDIA, Meta Platforms, and Alphabet, all poised to deliver impactful results.
Netflix Kicks Off Earnings Season
Netflix will be the first major tech name to report, officially launching this quarter’s earnings wave. Expectations are high:
Revenue: $11.04B (+15.51% YoY)
EPS: $7.07 (+44.8% YoY)
Strong growth and expanding margins suggest confidence in subscriber and content strategies.
NVIDIA: AI Powerhouse Still Charging Ahead
NVIDIA continues to lead the AI wave with:
Revenue growth: +51.86%
EPS growth: +38.66%
This reflects sustained enterprise demand for AI chips and infrastructure, positioning NVIDIA as a core AI winner.
Meta & Alphabet: Digital Ad Titans Stay Resilient
Despite economic pressure, both companies are expected to post solid numbers:
Meta: +14.25% revenue growth
Alphabet: +10.73% revenue growth
Both platforms benefit from increasing advertiser adoption of AI-driven tools like Meta’s Advantage+ and Google’s Performance Max, boosting campaign efficiency and returns.
Tesla Slows, Eyes Software & Robotaxi Future
Tesla is under pressure as core vehicle sales slump:
Deliveries: 384,100 (–13.5% YoY)
Model 3/Y: 97.3% of deliveries
Model S/X & Cybertruck: Down 50% YoY
The silver lining? Tesla is doubling down on software revenue and expanding its Robotaxi service in Phoenix, supported by its scalable FSD (Full Self-Driving) tech.
Cloud Wars: AI Is the New Growth Engine
Amazon, Microsoft, Google, and Meta’s cloud arms are under the spotlight. Growth in AI services like model trainingand inference computing is offsetting a slowdown in traditional services like storage.
Microsoft Azure: AI-related revenue now >10%
Capex Trend: 2024 spending hit $221B (+55% YoY), forecast to reach $330B in 2025 (+49.3%)
This AI-first investment shift not only reflects long-term confidence in the space but also has ripple effects on chipmakers like Nvidia and Broadcom.
Digital Ads: AI Tools Drive Efficiency
Advertisers are rapidly adopting automation:
Google’s Performance Max and Meta’s Advantage+ are seeing rising usage.
This automation enhances targeting, creative, and performance optimization—reinforcing the platforms’ dominance.
Hardware: A Mixed Picture
Apple: iPhone shipments up 2% YoY in Q2, but down 20% QoQ. Market share stable at 16%, slightly below two years ago.
Tesla: Facing its toughest sales slump since 2015, pushing the company to diversify into software and FSD.
Streaming Services: Steady Market Share
Per Nielsen, the Q2 streaming landscape remained stable:
Top platforms: YouTube (12.5%), Netflix (7.5%), Disney, Amazon Prime
Netflix: Long-term original content is improving margins—a key investor metric.
Final Takeaway
This earnings season is about more than just numbers—it's about narrative.
Will Netflix maintain momentum with content profitability?
Can NVIDIA keep up with AI demand?
Will Tesla convince the market with its Robotaxi pivot?
And how much cloud-fueled AI growth is left in the tank?
Comments
Post a Comment