Tesla delivered *triple digit* revenue growth this quarter versus the same quarter a year ago. The company also managed to significantly increase gross margins. Rapid revenue growth and rising margins bodes well for the company. With that said, the Solar City acquisition is absolutely destructive to shareholder value. The deal shows that Musk is not particularly focused on increasing shareholder value.
Google managed to grow its 'Google segment' operating income 16.7% in the quarter. The company's double-digit growth is incredibly impressive (and rare) considering the size of the company. Google currently has a market cap of over $500 billion. Google is proving quarter after quarter that it isn't susceptible to its enormous size slowing growth.
Amazon continues its amazing growth. According to Mauboussin's "The Base Rate Book - Sales Growth" document, the odds of a business with over $50 billion a year in sales growing at 20% or more is just 8.8% a year. Amazon's sales growth is incredibly impressive when one considers the size of the company. The company's experimental culture and continued expansion mean sales could continue growing at a rapid rate over the next several years.
Google continues to post rapid EPS growth numbers as its search advertising revenue and income grow. The company's growth is even more impressive considering its $500+ billion market cap.
While $AAPL's EPS has declined some since last year, the company is still quickly growing app store revenue. Additionally, the company's stock is priced at bargain levels with a P/E ratio of under 11... Which is very unusual for a powerhouse company like Apple.
Microsoft closed the year with adjusted EPS growth of 6%, which is decent given the company's tremendous size and market position. Microsoft ended the year on a positive note, however, generated 11% adjusted EPS growth in the 4th quarter Y-O-Y.
IBM suffered heavy declines in operating income in its most recent quarter. The company's revenue and margins declined. IBM operates in a quickly changing industry. The company has not been able to replace its legacy operations fast enough to keep pace with this change.
Amazon continues its impressive operating cash flow growth. Operating cash flows are growing well ahead of revenue, showing the company is becoming more efficient as its scale based competitive advantage increases.
While Apple posted declines this quarter, the company is using its cash flows to reward shareholders. $11.6 billion in operating cash flow was generated during the quarter (just think about that quarterly number for a second...), and $10 billion was paid out to shareholders as dividends and share repurchases. Long-term Apple shareholders should feel good about management's willingness to return cash to them.
Google stock fell 5% during the morning of 4/22/16 - despite delivering 15.9% Y-O-Y Adjuseted EPS growth. Constant currency revenue grew 23% Y-O-Y. Don't be fooled by the stock price decline - Google is stronger than ever.
Microsoft continues to deliver solid constant-currency revenue, operating income, and earnings-per-share growth. The market isn't too happy with results (shares plummeted 5% 4/22/16), but the company is now fairly priced for a high quality blue chip stock.
Twitter's rapid growth and low profitability make it difficult to value. The company should be able to significantly boost advertising revenue (and earnings) over the next several years, but how much is anyone's guess.
LNKD stock plunged 40% (yes, really) after this announcement... Even AFTER the decline, the company is still trading for an absurd P/E ratio of 38. EPS are projected to grow between 7% and 12% in fiscal 2016 which is good for a company like KO or PG, but far short of what an investor should expect for a company with a P/E ratio of 38.
$GOOG's cash hoard continues to grow - now reaching $73 billion. If a recession does occur, $GOOG is in a great position to acquire smaller tech companies when their valuations decline.
Operating income for next quarter will be between "$100 and $700 million" - quite a wide range. Note that the company is spending ~$600 million on stock based compensation - which could drastically increase OCF if it were trimmed back.