Amazon pops on surging sales, as all of Big Tech posts monster earnings: CNBC After Hours

today is the busiest day of earnings season and wraps up this massive week of big tech names reporting plus as president biden completes his first 100 days on the job we take a look at how the markets performed in his inaugural months and finally the consumer economy is back as people are spending more than they were even in 2019 this bodes well as new york city reveals its plans to fully reopen this summer i'm pippa stevens and this is cnbc after hours stocks finish higher across the board and the s p 500 notches another record close and as we mentioned at the top today marks the busiest day of earnings season those few weeks every quarter when public companies open up their books and report their revenues and profits to shareholders late this afternoon it was amazon's turn and the e-commerce giant has continued to profit in this pandemic environment sales skyrocketed 44 higher from the first quarter last year coming in at more than 108 billion dollars investors were so pleased with amazon's performance that the stock hit a new all-time high in after hours trading amazon caps off a monster three-day spree of big tech earnings during which we heard from microsoft facebook apple and google parent alphabet the results were in a word huge but there are some big questions looming over these blowout reports steve kovac explains so big tech earnings just proved what we've been seeing the entire pandemic that these companies were built for people being stuck and locked down using various digital services buying new gadgets as they work in play from home and that was really representative in apple's blowout earnings report that they did on wednesday what we learned from apple is revenue is up about 54 and they made so much money they're doing 90 billion dollars in share buybacks that's 90 billion that's about the market cap of snap for example so they are just making money hand over fist it doesn't matter that so much of the pandemic is crippling other industries big tech is dominating right here and that's especially notable in apple's results for the mac and ipad segments which are growing more than 70 percent year over year we also heard from facebook yesterday and they had another blowout quarter so what we learned from facebook is they command such high prices and digital advertising not just because more advertisers especially travel are coming back online as people get out in the world again but also just they have such good data on people and their ads are so effective they can set the rates that they want and what we heard yesterday from mark zuckerberg on the call was look there's this change coming to the iphones this week it's it's going to be enacted we're going to see how it plays out in the coming months but now after screaming and crying and yelling about this change for months facebook's not worried about it anymore they're saying we have a plan in place we have great internal data on all our users across our whole family of apps from instagram to messenger to the regular facebook app and we're able to monetize those users and command really high prices for advertising the big tech companies are really valued on how many users they can capture in netflix's case that means subscribers in facebook's case that means users but there is a huge pull forward for a lot of these companies early on in the pandemic as people started signing up for netflix or sitting on facebook on their phone a lot more and we're starting to see that slow down just a hair because people are excited they want to get out and this is something people have been worried about since the beginning of the pandemic that once we come out of this what are these insane growth numbers going to look like well they're still making money hand over fist that's fine but when it comes to what wall street really cares about the users the subscriber growths that's slowing down a bit and it's going to be interesting to see if they can kind of rebound in the back half of the year okay let's get to our sound check here's a roundup of the day's biggest action and what the top newsmakers and business leaders had to say on cnbc's airwaves we're the largest company the only company that represents content in the entertainment space owns content and interface owns sports with ufc and many others and represent it there's nobody like us in the world and i think we're the reopening plus we have all the experiences the largest experience companies so we're we're a unique company in the marketplace right now we have line of sight to significant material improvement to supply and get the ability to match supply and demand as close as we can as we get to the end of the calendar year and still with this very challenging supply environment we had continued to generate growth in the quarter in the guide and i think we're very happy with the company performance historically we we do well in low inflation periods i'll say a couple percent inflation we've uh generally done pretty well in those types of periods we have seen some recent increase in commodity costs now but the fed i think is doing a pretty impressive job right now of containing things and so as long as they hold inflation around that two percent target that they're targeting we feel pretty good about uh our opportunities [Music] frankly we don't think that's going to be a significant part of the issue obviously crewing is what makes us successful and anything there is an issue but i think we're feeling pretty confident that the crew are eager to come back and that we have ways to overcome the regulatory and other uh issues that are facing us today marks president biden's 100th day in the oval office in that time he's pushed through a covert relief package and proposed trillions more in spending to pay for that the administration wants to hike the capital gains tax for people making 1 million or more in investment income remember capital gains is the tax investors pay on their stock market returns biden addressed that proposal head on last night when he spoke in front of a joint session of congress sometimes i have arguments with my friends in the democratic party i think you should be able to become a billionaire and a millionaire but pay your fair share and wealthy people with money in the stock market have been very successful so far under president biden in his first 100 days the stock market has had its best performance for any president's first 100 days going back to the 1950s bob passani has those details there's been an obsession about a inaugural president's first 100 days for a long time it really goes back to franklin roosevelt in 1933 when he came into office in march of 33 the country was in the middle of the depression and he inaugurated a series of legislative initiatives to get the country out of the depression he shut down the banks and created deposit insurance he tried to get the country out of the depression and ever since then new presidents have been judged by their first 100 days in office now for joe biden if the stock market performance is a way of judging the success of the first hundred days joe biden is a big winner this is the best first 100 days for the stock market for a president in 75 years you got to go back a long long way since the election on november 2nd the s p 500 is up 28 that is a remarkable run in essentially six months since his inaugural since january 19th it's also still up 10 not as much the other thing that's really happening that's important is we're getting earnings we're halfway through earning seasons for the first quarter this is the best earning season we've seen in more than 12 years virtually everything is going right earnings estimates are going up and that's the most important thing for the stock market remember it's earnings that matters for stocks and when the estimates for how much companies are going to make in the second third and fourth quarter keep going up that's a big thing second thing that matters is the margins how much profit are you really making compared to what you're actually spending the margins are holding up even though in some cases the costs are going up they're raising some prices to cover some higher costs like transportation costs labor costs and material costs the other thing that matters right now in terms of the second hundred days because remember the stock market doesn't care about what just happened the stock market's trying to figure out what's going to happen in the next 100 days continue to see earnings go up estimates that's going to matter number two is what's going to happen with the biden legislative strategy remember he got a big stimulus program through but he's got a couple of other programs he's working on right now including a big infrastructure bill that could impact the stock market the third thing that matters is the reopening story and continued economic growth most people feel that the numbers are going to continue to go up for the next couple of months and the economic news is just going to be terrific finally the federal reserve they've talked about not right and not hiking rates for a long time but we'll see if the economy really heats up they may have to start thinking about doing something next year if you want one problem the stock market has right now things are really going too well this is what people call peak everything it's peak earnings it's peak economic growth right now how much better is it really going to get the stock market's trying to figure that out right now before we go let's get to the numbers round we'll start with 45. card spending is up 45 from last year according to a bank of america analysis of its credit and debit card users in a note to clients titled the snooze is over the bank's research echoes the country's robust 6.4 gdp growth we saw in the first quarter we should point out this jump in consumer spending isn't just explained away by the fact that many americans were confined to their homes and lockdowns this past year that bank of america report shows spending is also up 20 from 2019 levels next 100 new york city will fully reopen to 100 capacity starting july 1st according to mayor bill de blasio the city hasn't been open in more than a year since it was the epicenter of the pandemic when lockdowns went into effect in mid-march 2020 but as of wednesday more than 6 million doses of the kova vaccine have been administered in the city and about 36 of its adult population is fully vaccinated more than half have received at least one dose and finally 50. ford expects to lose a 50 percent of its second quarter production due to the ongoing semiconductor shortage that is plaguing the auto industry the ceo told jim cramer on mad money last night that this current quarter will be the company's most difficult and that he expects production will rebound in the second half and set up forward for a strong 2022. the car maker expects to face a two and a half billion dollar hit this fiscal year as a result of the supply chain crisis we've got full coverage of the chip shortage and the havoc it's wreaking on manufacturing across multiple industries on cnbc.com and on the cnbc app that's it for after hours we'll be back here in our home office every tuesday and thursday so be sure to catch us then

Channel: CNBC Television

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Id: -XOQka8b40o

Length: 11min 51sec (711 seconds)

Published: Thu Apr 29 2021