As Tesla, Meta, and Microsoft prepare to release earnings, investors closely monitor key trends in AI, cloud computing, and advertising. Here’s what to expect from each company’s report.
Tesla: A Challenging Quarter Amidst AI and EV Competition
Tesla is set to announce its Q4 2024 earnings on 29 January at 8:00 am AEDT (9:00 pm GMT), following a quarter of record deliveries but also its first-ever annual decline. The electric vehicle maker delivered 495,570 vehicles in Q4, missing its 500,000 - 510,000 target.
For the full year, Tesla sold 1.79 million vehicles, reflecting increasing competition from BYD and other automakers.
Revenue: Markets expect US$27.2 billion, an 8.1% YoY increase.
Earnings Per Share (EPS): Forecast at $0.77, reflecting 7% growth.
Margins: Price cuts have driven automotive gross margins down to 15% from historical highs above 25%.
Beyond EVs, Tesla’s AI investments - including Full Self-Driving (FSD), the Dojo supercomputer, and the Optimus robot - remain focal points. However, competition from China’s DeepSeek, which has developed a cost-efficient AI model, could disrupt Tesla’s AI ambitions.
Investors will also watch updates on Cybertruck production, energy storage growth, and Tesla’s 2025 outlook.
Meta: Ad Revenue Surge and AI Integration
Meta’s Q4 2024 earnings are expected to showcase strong advertising growth and continued AI-driven engagement across its platforms. The company’s stock has surged 25% year-to-date, reflecting investor confidence.
Revenue: Expected to reach $46.99 billion.
EPS: Saxo Bank analysts forecast $6.75, up 27% YoY.
Key areas to watch include Meta’s ability to monetise Instagram Reels, Facebook’s daily active user count (expected at 2.2 billion), and Reality Labs' metaverse investments, which remain a long-term play despite ongoing losses.
AI-driven ad targeting continues to give Meta a competitive edge over TikTok, while management’s guidance on Q2 growth will be critical.
Microsoft: AI, Cloud, and DeepSeek Disruption
Microsoft’s Q2 2025 earnings will test the company’s AI momentum amid new competition from DeepSeek’s cost-efficient models.
Revenue: Projected at $68.9 billion, an 11.1% YoY increase.
EPS: Estimated at $3.11, up 6.8% YoY.
Azure Growth: Cloud revenue is expected to hit $37.2 billion, with AI contributing 8 percentage points to last quarter’s 29% Azure growth.
AI remains central to Microsoft’s strategy, with Copilot adoption growing and the company investing US$80 billion in data centres in 2025. However, DeepSeek’s ability to run high-performance AI on older hardware raises concerns about Microsoft’s costly AI infrastructure.
Beyond AI, Microsoft’s acquisition of Activision Blizzard has strengthened its gaming division, with Xbox content revenue surging 61% last quarter. Investors will watch Azure performance, AI monetisation updates, and broader market competition.
