Dan Ives on Tesla & Microsoft: Key Takeaways from the Earnings Reports

On ‘Closing Bell Overtime,’ Dan Ives, Global Head of Technology Research at Wedbush Securities, provided his insights on the earnings reports from Tesla (TSLA) and Microsoft (MSFT), with lingering anticipation for Meta’s (META) results.

For Tesla, Ives highlighted two crucial aspects: the commitment to producing cheaper vehicles in the first half of the year, which alleviated concerns about delays, and the progress on autonomous driving with the Cybercab or RoboTaxi project. Despite Tesla missing on both revenue and earnings – EPS $0.73 adjusted vs. $0.76 expected, Revenue: $25.71B vs. $27.26B expected – Ives emphasized that the real focus for investors should be on the AI and autonomous driving aspects, suggesting that the stock might rebound. He pointed out the importance of Elon Musk’s participation in the earnings call, especially in discussing the regulatory environment under a potential Trump administration, which could significantly impact Tesla’s autonomous driving initiatives.

Turning to Microsoft, Ives noted the significance of the company’s guidance over its actual numbers. He discussed the $13 billion spent on AI-related capital expenditures as a sign of Microsoft’s ongoing commitment to AI, with expectations of this investment scaling up to $20, $25, or even $30 billion. This investment trajectory, he argued, is what investors are most interested in, especially in light of the AI market dynamics influenced by competitors like DeepSeek. Ives predicted that Microsoft’s conference call would be bullish, with Azure growth possibly accelerating despite currency headwinds, and he reaffirmed Microsoft’s $80 billion capex guidance, suggesting confidence in their AI strategy.

Regarding the broader AI market, Ives addressed the impact of DeepSeek, viewing it not as a threat but as a catalyst accelerating the AI revolution. He mentioned that companies like ServiceNow (NOW), Palantir (PLTR), and Salesforce (CRM) would benefit from this trend, focusing on how AI can enhance software use cases rather than solely on cost reduction.

As for Meta, which was late with its earnings release, Ives outlined key expectations: a reiteration of the $60-$65 billion capex commitment, strategies to monetize their vast user base, particularly through AI, and insights into advertising growth. He noted that Meta’s checks at Wedbush were bullish on advertising, positioning Meta strongly. Ives underscored that this earnings call could be one of the most critical in recent quarters for Meta, given its current offensive stance in AI and monetization strategies.

Overall, Ives portrayed a tech landscape where AI and autonomous technologies are central to future growth, with each company’s approach to these innovations shaping investor perceptions and market movements.

WallStreetPit does not provide investment advice. All rights reserved.

About Ari Haruni 467 Articles
Ari Haruni

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