The US financial results season has arrived, and is “M7” profit growth still leading the S&P 500?

Since the beginning of this year, Netflix's stock price has risen by about 28% to 622.83 dollars (4/12), which is 35 times the valuation value of the 2024 earnings forecast. Considering that Netflix's earnings per share (EPS) are expected to grow 43% this year, analysts say the current price of $622.83reasonable but not cheapI'm thinking about it.

Competition in the market will intensify in response to the announcement of financial results this timestreaming marketI'm paying attention to Netflix's performance at In particular, investors expect Netflix to continue to maintain strong momentum in terms of important indicators such as content investment, number of subscribers, global expansion, and profitability.

Chairman George Ball of the investment company Sanders Morris pointed out that “what will drive future market prices is not observing a reduction in US interest rates, but earnings.” ”Even in the current high interest rate environment, corporate profits greatly exceed market expectations” he said.

According to analysts, this trend of the S&P 500 index constituent stocks finally reversed in the fourth quarter of last year from a decline in profit for 3 consecutive terms in the 1st to 3rd quarters of last year. Driven by strong economic growth and consumer demand, profits for the S&P 500 Index constituent stocks are expected to increase for 2 consecutive quarters.High-tech stocks drive the marketIt is expected to be.

Analysts are optimistic about the financial results of major high-tech companies. Jessica Rabe, the co-founder of DataTrek Research, said that with the exception of Apple and Tesla, the earnings forecasts of major high-tech companies other than the “M7” were revised upward, and not only for the first quarter,Forecasts for this year and next have also been raisedI will point out that it has been done.

Mr. Rabe said that in the past 90 days, analystsEarnings per share for the first quarter of “M7”(EPS)Forecast revised upwards by 5.5%And, excluding Tesla, this number10% or moreI pointed out that it would happen. Also, analysts have revised earnings per share (EPS) forecasts for “M7” for 2024 and 2025 upward by 3% or more.

However, Chris Senyek (Chris Senyek) of Wolfe ResearchThe rise in crude oil prices and the uncertainty of when interest rates will be cutTaking into account factors such as, the stock market will be even more in the future than in the first quarterThere is a possibility of instabilityIt is pointed out that investors should be wary of this.

NVIDIA also performed well in the first quarter of 2024, and it has risen 78% since the beginning of this year. Cantor Fitzgerald analyst C.J. Muse recentlyBuy NVIDIAHe stated that this is one of the best tactics of the current fiscal season.

Also, stock prices have risen recentlyGoogle and AmazonRegarding, the path of monetizing Google's AI is still uncertain, but since evaluations are low compared to other high-tech giants, analysts think it is an attractive brand.

Meanwhile, it dropped out of “M7” after entering 2024Apple and TeslaThere is a possibility that financial results for the first quarter will not meet expectations. LPL Financial strategist Jeffrey Buchbinder said that in contrast to the profit growth rate of “M7” reaching 40% in the first quarter,Tesla and Apple are expected to be less profitableI'll point that out. However, compared to analysts' pessimism about Tesla,It is said that Apple's situation is different. Apple has been hit by unfavorable situations one after another since the beginning of the year, and when stock prices are sluggish, major financial institutions such as Bofa Securities and JPMorgan Chase went against that trend, and there are also people who show a bullish view on the company. BofA Securities analysts say investors are once again Apple'sUnderestimating gross profit marginI said I was doing it.