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Weekly Tech Roundup: Netflix, Nvidia, Tesla, Apple, and ASML

Netflix Smashes Expectations with Q3 Earnings

Netflix had a fantastic week as its Q3 earnings surpassed expectations. The company reported earnings of $3.73 per share, beating the average analyst target of $3.49. Moreover, Netflix saw a rise in paid subscribers, with 8.76 million new subscribers in the third quarter. This exceeded expectations by over 2 million subscribers. The company also announced a price hike on its streaming services, with basic and premium plans in the US, UK, and France seeing increases. Shares of Netflix soared by 16% for the week, closing at $400.96.

Nvidia Faces Challenges Due to US Export Restrictions

Nvidia experienced a setback as its shares plummeted nearly 10% after the US government imposed restrictions on chip exports to China. Nvidia expressed concerns about the impact of these export controls on its product development and support for existing customers. The company may need to relocate certain operations to comply with the restrictions. Analysts at Citi and Morgan Stanley lowered their price targets for Nvidia in response to the news.

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Tesla Misses Wall Street Estimates

Tesla disappointed investors as its Q3 earnings fell short of Wall Street estimates. The company reported adjusted earnings per share of $0.66 on revenue of $23.35 billion, missing expectations. Tesla’s gross margins also declined due to recent price cuts on electric vehicles. CEO Elon Musk expressed caution about the high interest rate environment and tempered expectations for the company’s Cybertruck vehicle. Several Wall Street analysts lowered their price targets for Tesla, citing concerns about its near-term outlook.

Apple Faces Challenges in the Chinese Market

Apple’s latest iPhone, the iPhone 15, is struggling in the Chinese market. Sales of the iPhone 15 have lagged behind its predecessor, facing competition from companies like Huawei. Market tracker Counterpoint Research estimates a 4.5% decline in iPhone 15 sales compared to the iPhone 14. This trend suggests that Huawei may surpass Apple in the Chinese market by 2024. Apple shares slipped by 3.3% for the week.

ASML Maintains Robust Outlook Despite Soft Guidance

Semiconductor-equipment maker ASML issued a cautionary outlook despite falling short of expectations. The company warned of flat sales in the upcoming year but maintains a robust order backlog of €35 billion. BofA analysts consider ASML a top pick, highlighting its attractive valuation and the potential for significant growth in 2025. Despite the soft guidance, ASML remains optimistic about its customers’ expansion plans across Asia, the US, and Europe.

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