Among the seven giants of the US stock market, $Tesla (TSLA.US)$ First to announce its better-than-expected financial report, Tesla's super strong earnings in the third quarter shook the market. After the financial report was released, Tesla's stock price soared by 21.9% on Thursday, marking the largest daily increase since May 2013.

However, after the release of Tesla's financial report, Wall Street institutions had a huge difference of opinion on its future stock price trend, with some extremely optimistic and others more cautious, believing that Tesla has not yet addressed long-term growth concerns. The bullish side sees this as an "early Christmas gift" for investors, predicting Tesla's "second wave of growth".

Dan Ives, a well-known analyst at Tesla's bull party and American investment bank Wedbush, stated that this is an "early Christmas gift" for investors. Combining profit margins with Tesla's artificial intelligence, autonomous driving products, and other growth drivers will ultimately bring a market cap of over one trillion dollars. He maintained his buy rating on Tesla and a target price of $300.

John Murphy, an analyst at Bank of America, raised Tesla's target price in the backdrop of Tesla's strong performance. He raised the target stock price from $255 to $265 and maintained the company's buy rating. Looking ahead, Bank of America believes that by 2025, Tesla will be in a "favorable position" and will usher in a "second wave of growth".

Morgan Stanley's star analyst Adam Jonas specifically focused on CEO Elon Musk's prediction that by 2025, Tesla's sales growth rate could reach 20% to 30%. The team believes that in the third quarter, investors are more focused on reducing car costs and increasing the profitability of the car business, rather than trying to assess the value of Tesla's transition to artificial intelligence and other businesses. Tesla remains Morgan Stanley's "top pick", with a target price of $310.

The bearish side believes that the market trend brought by Tesla's Q3 financial report is "unsustainable".

JPMorgan analyst Ryan Brinkman pointed out that while investors may be excited about Tesla's extraordinary profit growth, the catalyst driving this surge in stock price should not be seen as a long-term growth factor. He believes that the market brought by the Q3 financial report is "unsustainable". Brinkman maintains his hold rating on Tesla, but slightly raises the target price from $130 to $135.

Additionally, TD Cowen analyst Jeff Osborne, who also has a bearish outlook on Tesla, mentioned that Tesla's performance in the third quarter is driven by strong gross margins. He also noted that the company's new car releases are still expected to proceed smoothly in the first half of next year. However, his rating remains "neutral" with a target price of $180.

After Tesla's financial report, investors can focus on the progress of Robotaxi, FSD, and the US elections. Musk stated at the Q3 conference call that next year, Robotaxi services will first be launched in California and Texas, despite significant regulatory challenges; Tesla plans to launch fully autonomous driving FSD in China and Europe in the first quarter of 2025, expected to be approved by the end of this year. In addition, the US election is in full swing, with Musk recently strongly supporting Trump in swing states. If Trump wins in November, it will boost investment sentiment for Tesla.

Since its listing, Tesla's stock price has shown some seasonal fluctuations. According to historical data, November is the second strongest month for Tesla stock performance, with a win rate of 71% and an average ROI of 9.79%. The strongest month is June, with Tesla's stock price cumulatively rising by 11.12% in June this year.

Next week, tech giants are set to release their financial reports, with expectations of continued increases in capital expenditure.

Financial reports are the current market focus, with a wave of tech giants' financial reports set to be announced next week. $Apple (AAPL.US)$Please use your Futubull account to access the feature.$Microsoft (MSFT.US)$Please use your Futubull account to access the feature.$Alphabet-A (GOOGL.US)$/ $Alphabet-C (GOOG.US)$Please use your Futubull account to access the feature.$Amazon (AMZN.US)$ and $Meta Platforms (META.US)$ Earnings report will be released. So far, over 27% of S&P 500 index constituent companies have reported third quarter performance, with 76% of companies exceeding expectations.

1,$Alphabet-A (GOOGL.US)$/ $Alphabet-C (GOOG.US)$ Its third quarter results will be announced after market on October 29.

The market generally expects Google to achieve revenue of $86.23 billion in Q3, a year-on-year growth of 12.44%; earnings per share are expected to be $1.84, a year-on-year growth of 18.97%.

Key points: The market is particularly focused on the performance of its cloud computing, advertising business, and YouTube in the market, as well as the risk control of anti-monopoly. The continued growth of Google Cloud business, the revenue of the cloud department helps alleviate concerns in the market about large technology companies increasing their investment in artificial intelligence; whether the demand for digital advertising remains stable; Google is facing regulatory pressure from the US Department of Justice.

3, the strong performance continued after the earnings report. The volume of options on Friday surged to 0.3 million contracts, and the call ratio increased again, to around 70%. On the options chain, the call with a $40 strike price expiring this Friday was sought after, with a trading volume of 0.034 million contracts and an open interest of 3,800 contracts. The option recorded a 100% increase on the day. $Microsoft (MSFT.US)$ Will release the latest quarterly earnings after the market closes on October 30.

Analysts generally expect Microsoft's revenue for the first quarter of fiscal year 2025 to reach $64.53 billion, compared to $56.52 billion in the same period last year; earnings per share are $3.10, compared to $2.99 in the same period last year.

Key points: The fundamental increase in Microsoft's business, revenue growth remains a key indicator for Microsoft; the customer base in key areas such as Azure and enterprise software, the continuation of this trend will be a bullish signal for long-term growth; progress in the layout of artificial intelligence and cloud computing fields, artificial intelligence revenue is expected to exceed $10 billion by 2025.

$Meta Platforms (META.US)$ Will announce its third-quarter performance after the market close on October 30th.

Market consensus expects Meta Q3 to achieve revenue of $40.299 billion, an 18.02% year-on-year increase; earnings per share of $5.28, a 20.24% year-on-year increase.

Key points: Advertising is the core revenue source for Meta, and advertising in the third quarter may show strong growth, especially considering the enhancement of its advertising capabilities by artificial intelligence. Advertising revenue in the third quarter may grow by as much as 25% year-on-year; the impact of the metaverse business on the overall business, but currently its focus on the Reality Labs department, which specializes in VR and AR technology, is still experiencing losses; whether there will be a stock split plan, Meta is the only company among the 'Magnificent 7' that has never split its stock.

4. $Apple (AAPL.US)$ Will announce its fourth-quarter performance for the 2024 fiscal year after the market close on October 31st.

Market expects Apple's revenue to be $94.26 billion, a 5.3% year-on-year growth; earnings per share are expected to increase from $1.46 in the same period last year to $1.57.

Key highlights: Revenue contributions from iPhone, iPad, Mac, wearable devices, home and accessories, and services business, especially the market performance of iPhone 16; sales situation in different regions, as well as the expansion capability in emerging markets; Production volume of Vision Pro mixed reality headsets, with previous reports of multiple suppliers reducing production of Vision Pro components; With the development of artificial intelligence technology, the latest progress of Apple Intelligence has received attention from investors.

5、 $Amazon (AMZN.US)$ Will announce its third-quarter results after the market on October 31 local time.

The market expects Amazon's Q3 revenue to grow by about 10% to $157.2 billion, compared to $143.083 billion in the same period last year; earnings per share are expected to increase to $1.14, compared to $0.87 in the same period last year.

Key points to watch: Revenue contributions from e-commerce, AWS cloud services, advertising services, subscription services, and other sources to Amazon. The two major growth engines - advertising and AWS business - are expected to continue to expand, helping to improve overall profitability. The development of AWS cloud services, market position, business innovation, and expansion. Intensifying competition in cross-border e-commerce, Amazon's expansion into low-price markets.

Wall Street expects tech giants' capital expenditures to continue to surge.

Capital expenditures in the performances of Microsoft, Amazon, Google, Meta, and other giants will be a key focus for investors. The AI expenses of these giants to some extent represent Nvidia's sales. Wall Street statistics show that the capital expenditures of these four tech giants exceeded $50 billion in the second quarter, with most of it used for purchasing data center AI chips.

According to Visible Alpha, Wall Street expects total capital expenditures for Microsoft, Alphabet, Meta, and Amazon, the four tech giants, to increase by 56% to over $60 billion in the quarter ending in Q3. By the fourth quarter, Wall Street expects these capital expenditures to once again show a double-digit substantial increase, pushing total annual spending to around $231 billion, about 49% higher than 2023.

According to Citigroup's forecast data, by 2025, the capital expenditures related to data centers of the four largest tech giants in the USA (Amazon, Google, Microsoft, and Meta) are expected to grow by at least 40% year-on-year. These massive capital expenditures are mostly linked to generative ai, indicating that the computational power demand for AI applications like ChatGPT remains significant.

In addition, according to FactSet's estimation, Apple's R&D expenses for this quarter are expected to reach a new record of $31.5 billion, nearly a 6% year-on-year increase, while revenue growth is forecasted to be less than 2%.

Nvidia released its performance on November 20th, with Blackwell expected to ship in Q4.

$NVIDIA (NVDA.US)$ It will announce its earnings for the third quarter of fiscal year 2024 after the market closes on November 20th. Wall Street analysts currently expect Nvidia's revenue for the third quarter to grow by 83% to $33.1 billion; earnings per share are expected to reach $0.74, an 84% year-on-year increase.

Key points of Nvidia's financial report, technology giants' capital expenditure is expected to continue to surge, investors will closely monitor Nvidia's capital expenditure, especially the scale of AI investment; the market is also focused on Blackwell chip news, especially Blackwell order volume; Nvidia's collaboration with other companies in the AI field, such as Microsoft and other.$Accenture (ACN.US)$and others.

Before Nvidia's financial report in November, Wall Street analysts continue to be bullish on it. Analysts expect the stock to have more upside potential and keep raising Nvidia's target stock price. Last week, Bank of America's strategist raised Nvidia's target stock price from $165 per share to $190. The bank's analysts pointed out that the artificial intelligence market in the coming years will experience exponential growth, which will bring Nvidia 'intergenerational opportunities'.

Goldman Sachs estimates that Blackwell can help Nvidia generate billions of dollars in revenue. The introduction and enhancement of Blackwell is not only a driver of recent and medium-term revenue growth, but also a driver of expanding Nvidia's competitive advantage. Huang Renxun stated at a recent Goldman Sachs meeting that Blackwell chips are expected to start shipping in the fourth quarter.

Driven by the enthusiasm for the AI boom and Blackwell chips, Nvidia's stock price has surged by over 183% this year. The stock hit a record high of $144.42 on Tuesday, October 22.

Last week, global chip manufacturing giant $Taiwan Semiconductor (TSM.US)$ announced impressive Q3 financial results, with a 54% year-on-year increase in net income, net revenue exceeding market expectations, and an upward revision of the revenue growth target for 2024. This eased investors' concerns about global chip demand and the sustainability of the AI hardware boom. In addition, the $Micron Technology (MU.US)$ also exceeded Wall Street's expectations in its recent financial report. These positive financial news from Nvidia's industry partners have boosted Nvidia's stock price and the overall AI sector.

Concerns are raised about the concentration of the US stock market, while the founder of Muddy Waters still remains bullish on the 'magnificent 7'.

Before Tesla's financial report was released, Carson Block, the founder of Muddy Waters known for shorting, stated in a recent interview that he will not short Tesla. As early as 2021, he concluded that shorting Tesla was a foolish act. He also mentioned that he recognizes Tesla's capital size as a safety net.

At the same time, Block advised investors not to overthink and blindly buy stocks of the magnificent 7 technology companies, as this would be a profitable investment.$S&P 500 Index (.SPX.US)$After hitting new highs this year, causing concerns about valuations, Block mentioned in an interview that the inflow of funds from retirement funds will still be a key driver for further stock market gains, especially for the stocks with the largest weights.

Wedbush Securities stated that after the 'strong' third quarter earnings season in the technology industry, the AI revolution and rebound in digital advertising will drive tech stocks higher in the last quarter of this year. It is expected that tech stocks will rise by 20% in 2025, as the tech bull market 'has just entered the next stage led by revolution' and is going through 'a generational consumption cycle'.

Analysts led by Daniel Ives stated in a report last Sunday that 'We believe the key highlights of this tech earnings season will be the massive scale cloud computing giants Microsoft, Google, and Amazon all showing robust growth, surpassing Wall Street expectations, as a large amount of workloads move to the cloud, setting the stage for large-scale deployment of AI enterprise applications/models by 2025.'

Furthermore, Daniel Ives mentioned that Apple's iPhone 16 is kicking off the company's 'consumer AI revolution'. He added that Apple's supply chain has expressed to the firm that 'this iPhone upgrade cycle could be historic', as the company estimates that about 0.3 billion phones have not been upgraded in over four years. Additionally, with the 'AI-driven upgrades gaining traction', Apple's sales next year could exceed 0.24 billion units. The report predicts that Apple will gradually introduce Apple Intelligence by the end of this month, marking the beginning of a 'large-scale holiday sales season' for Apple.

It is worth noting that this year, the US stock market is currently in the most concentrated market in history. So far this year, only Nvidia, Apple, Meta, Microsoft, and Amazon, these five companies alone have contributed to around 46% of the S&P 500 index's increase.

Regulators hope that investment institutions will diversify and spread their investments. According to the requirements of the US Internal Revenue Service, the total investment proportion of weighted stocks in the investment portfolio of any regulated investment company should not exceed 50%, and investments exceeding 5% are considered weighted stocks. This also means that large fund companies wanting to heavily invest in technology stocks like Nvidia and Apple also face regulatory risks of touching the 50% red line.

Furthermore, the market also expresses concerns about the rationality of the high valuations of the US tech 'magnificent 7'. FactSet data shows that Apple, Microsoft, and Amazon currently have forward P/E ratios of 34.4 times, 31.4 times, and 31.1 times respectively, with AI chip leader Nvidia at 41.8 times. After the significant rise yesterday, Tesla's valuation has already reached 83 times the expected earnings, more than twice the P/E ratios of Apple, Microsoft, and Amazon.

Editor / jayden