trading at rich valuations and after the emergence of DeepSeek, which rocked the sector.
Most publicly traded companies report their financial results every three months to update investors on how much money they made and on the current state of their balance sheets. Many companies will also provide financial guidance for the upcoming quarters or year so the market has some idea of how things will progress.
in your inbox every market day.
Earnings and guidance are extremely important, because investors and analysts use these figures to make projections and value stocks. Strong earnings and guidance typically lead to positive movements for the associated stocks. Here are three tech and AI companies that just blew the cover off of earnings.
Netflix: Strong subscriber growth
in what many analysts and investors see as a saturated streaming market. Paid subscriptions rose by nearly 19 million in the fourth quarter when the Street modeled only 8.2 million. Earnings and revenue also posted nice beats.
During the fourth quarter, Netflix streamed several big live events, including two NFL Christmas Day games and the highly anticipated boxing match between Jake Paul and Mike Tyson. Those events each brought in tens of millions of viewers. Perhaps even more impressive is that management said viewers that came to the platform for those events remained on the platform, and also that the growth could be attributed to a variety of content across the platform.
Management also increased its projected revenue range in 2025 by about $500 million to a range of $43.5 billion to $44.5 billion, while also announcing a $15 billion share repurchase plan. Netflix also raised the price on its subscriptions. The company is increasing its basic ad-supported plan by $1 to $7.99 per month, its first ad-free plan by $2.50 to $17.99 per month, and its premium subscription by $2 to $24.99 per month.
analyst Tim Nollen also opined on the results: “With no more sub reporting to come, investor focus shifts to Netflix’s ability to monetize its member base; advertising and price increases help answer this.”
GE Aerospace: Thriving since the split
, the company’s main business after spinning off its other divisions, enjoyed nice gains after reporting strong earnings for the fourth quarter. The company beat analyst estimates on revenue, earnings, and operating profits:
.
ASML: A nice AI beat amid the DeepSeek panic
enjoyed nice gains following its fourth-quarter earnings report on Jan. 29 that beat estimates and delivered guidance ahead of expectations. ASML reported net income of $2.8 billion, roughly $500 million ahead of analyst estimates. Net sales came in at $9.64 billion, nearly $200 million above estimates. Management also left its 2025 revenue outlook unchanged.
, which allegedly built a version similar to OpenAI’s ChatGPT at a fraction of the cost. But on ASML’s earnings call, CEO Christophe Fouquet told investors that he views DeepSeek as a bullish catalyst for the sector because cheaper AI will ultimately lead to more demand for semiconductors.
ASML is the sole manufacturer of lithography machines needed to make the advanced chips that power AI. Lithography machines carve patterns into silicon wafers. Fouquet also told investors that the company’s outlook for its sales to China remains unchanged, and that Chinese sales should make up about 20% of revenue in 2025, although further export controls and geopolitical tensions are a risk. Given what has happened in the AI sector recently, ASML’s report is at the very least a small sigh of relief for AI investors.
Should you invest $1,000 in Netflix right now?
Before you buy stock in Netflix, consider this:
for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,
Now, it’s worth noting
Stock Advisor
’s total average return is 903% — a market-crushing outperformance compared to
176%
for the S&P 500. Don’t miss out on the latest top 10 list.
Learn more »
*Stock Advisor returns as of January 27, 2025
.
