Asian markets saw a significant surge following the release of stronger-than-expected earnings results by Meta and Amazon, leading to a substantial increase in the share prices of the tech giants.
Despite a recent downturn in the stock market due to weak economic indicators in mainland China, the Hang Seng Index in Hong Kong rose around 2 percent in morning trading before moderating gains, while Japan’s Nikkei Index climbed 1 percent.
Furthermore, India’s NSE NIFTY 50 Index observed a rise of more than 1.5 percent.
Meta, the parent company of Facebook, reported remarkable fourth-quarter revenue of $40.1 billion and a profit of $14 billion, surpassing analysts’ forecasts. Consequently, Meta’s stock price surged by over 14 percent to exceed $445 in after-hours trading. Notably, the company achieved a significant milestone by becoming the first in its generation of tech unicorns to announce a dividend for its shareholders, set at 50 cents per share.
On the other hand, Amazon’s fourth-quarter results also surpassed expectations, with sales reaching $170 billion, driving a surge of up to 9 percent in its share prices. Amazon’s AWS cloud business also delivered strong results, with revenue reaching $24.2 billion.
Both Meta and Amazon have been actively involved in aggressive cost-cutting, collectively laying off approximately 48,000 employees since 2022.
The impressive performance of these tech giants added $280 billion to US markets, as the S&P500, NASDAQ Composite Index, and Dow Jones Industrial Average closed on a high note.
While Meta and Amazon’s fourth-quarter achievements serve as a bright spot amid regulatory scrutiny over online safety concerns and alleged antitrust breaches, fellow tech giant Apple also outperformed expectations with its results. However, its stock experienced a 3.3 percent dip due to a 13 percent decline in iPhone sales in China.
Meanwhile, Google’s parent company, Alphabet, announced fourth-quarter financial results that missed analysts’ forecasts, causing its shares to decline by over 6 percent.
Overall, the substantial earnings exceeding forecasts by Meta and Amazon have significantly impacted the performance of Asian and US markets, setting a positive tone for the tech industry in the face of increasing regulatory challenges.
