The stock market's once robust momentum has been slowly fading, raising concerns about a possible correction lately. The market’s sentiment is also being affected by a weakening global economy, despite positive factors like strong earnings and slower inflation.
Alibaba: Embracing AI Collaboration
In a bid to expand the utilisation of its product and cement its position as a tech industry leader, Chinese e-commerce giant Alibaba has announced the opening of its proprietary artificial intelligence model to third-party developers. This strategic move places Alibaba in potential competition with U.S. tech giant Meta, which has taken a similar approach, presenting a likely challenge to OpenAI, the company behind the widely popular AI chatbot, ChatGPT.
Apple: Impressive Performance in China
Apple has released its fiscal third-quarter results, surpassing Wall Street's expectations for both earnings and sales. The notable growth in services sales, marking an 8% year-on-year increase, has been the main driver of the company's success. However, overall sales experienced a 1% decline compared to the previous year, with revenue from iPhone, Mac, and iPad lines all exhibiting a decrease. Despite this, Apple's performance in the greater China region stands out as a highlight, with sales experiencing an 8% growth from last year, reaching $15.76 billion. This improvement comes after a previous quarter of contraction in the region, and Apple's CEO, Tim Cook, has noted a "definite acceleration."
Amazon: Continues to Surpass Expectations
Amazon has delivered another earnings triumph, reporting 65 cents per share, significantly exceeding estimates of 35 cents per share. This remarkable beat in earnings is a standout achievement, reminiscent of its impressive performance in February 2021, when the fourth-quarter profit of 2020 reached $14.09 per share, nearly doubling analyst projections. Such consistent outperformance has delighted investors, propelling the company's stock to surge in extended trading.
Fullerton Markets Research Team
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