sevenD.mp4
Category
🗞
NewsTranscript
00:00 More than 70% of S&P 500 earnings last year were led by 7 companies.
00:08 Only 7 companies led the S&P 500's growth in 2023.
00:15 The question now is, will this momentum continue?
00:18 And to what extent?
00:19 When we talk about the results of the companies and the quarter-final announcement season,
00:23 these 7 companies will lead again, but this time with the S&P 500's earnings.
00:31 So we are talking about the S&P 500's earnings for the quarter-final of 2023
00:38 until 16 January.
00:40 The predictions are that they will be 10 points ahead.
00:46 6% of S&P 500 companies announced their business results,
00:50 but these results were not positive at all.
00:54 The investor did not expect this, especially in the banking sector.
00:59 76% of earnings per share were better than expected until 16 January.
01:04 But these expectations were greatly reduced over the past 3 months.
01:10 So it was easy for the companies to exceed their expectations,
01:14 because the expectations were greatly reduced.
01:17 Now the S&P 500's earnings are expected to grow by more than 4% in the quarter-final of 2023.
01:24 But the question is, where will this growth come from?
01:27 Will it be limited in the technology sector or in other sectors?
01:33 Because the earnings we saw on the American shares last year
01:36 were not limited to these 7 companies.
01:40 So the question is, will we see the same trend on the business results?
01:45 The Magnificent 7 shares will continue to support business results
01:48 until Q3 2024, according to the LPL Financial's predictions.
01:55 If we compare the Magnificent 7 with other companies from the beginning of 2024,
02:02 we will notice that the leadership in the rise in profits is for the Magnificent 7
02:06 until Q3.
02:08 In Q4, we will start to see that companies outside the technology sector
02:12 will start to take the lead in the rise in profits.
02:16 Bank of America says that the Magnificent 7, except for Tesla,
02:20 will see a 56% increase on an annual basis.
02:24 What does this mean?
02:25 This means that without these shares, without the Tech shares,
02:29 the Magnificent 7 will see a 6% decline in the S&P 500's profits.
02:35 And there are many reasons.
02:37 We must remember a very important thing, that since the beginning of 2023,
02:42 the technology companies have been announcing a big decrease in their costs and in their jobs.
02:48 So the question is, to what extent, by the end of 2023,
02:53 will we see a big reflection of this big decrease in jobs and costs
02:57 on the bottom lines, on the profits of these companies?
03:01 On the other hand, we remind you that what led these companies
03:04 to take the lead is the artificial intelligence.
03:07 The dilemma is that these companies benefited from this different file.
03:11 Some companies are ready to benefit more from the artificial intelligence file.
03:15 Amazon and Amazon Web Services, and the dependence on it.
03:18 Google launched a Gemini model.
03:20 Nvidia released a new model.
03:22 Nvidia is considered one of the most companies that we see that the analysts
03:28 are bullish on because of their great benefit from the artificial intelligence.
03:32 Microsoft and the investments in Open AI.
03:35 Of course, we are talking about the growth of the artificial intelligence market,
03:38 the generative market, by about 42%, which could reach 1.3 trillion dollars
03:45 by the year 2032.
03:47 The question is, to what extent will this file reflect the profits of the companies
03:52 that work in this sector?
03:54 We remind you that these companies contributed 60%,
03:57 more than 60% in the S&P 500's growth over the past year.
04:02 Will we benefit from these past year's growth
04:06 and bet on similar growth for this year?