28.07.202111:43 Forex Analysis & Reviews: Tesla, Microsoft, and Apple have shown phenomenal financial results

Just a few days ago, the largest US companies reported financial results for the next quarter. In principle, no one had any doubts that all of them would show better financial results compared to the same quarter of 2020. However, Apple, Tesla, and Microsoft published even better figures than experts expected.

Apple increased its profit in the third fiscal quarter by 93%. Net profit amounted to almost $22 billion, which is almost twice as high as in the same quarter of 2020. Earnings per share increased from $0.65 to $1.3. It also became known that the company received a record profit in all geographical regions, as well as in all business segments. Revenue from iPhone sales rose to almost $40 billion. Revenue from Mac sales increased by 16%, and revenue from various services increased by 33%. At the moment, the company's capitalization is $2.5 trillion.

The same applies to another technology giant—Microsoft. The company's net profit increased by 38% and amounted to $61 billion. Total revenues increased by 18% and amounted to $168 billion. It should be noted that experts expected smaller volumes of revenue and income in the case of both Apple and Microsoft. The company's capitalization is currently equal to $2.18 trillion.

Tesla showed much more modest results. However, it should be taken into account that the volume of business of Elon Musk's company is disproportionately lower than that of Apple or Microsoft. The total revenue of Tesla amounted to $12 billion in the reporting period, of which $10.2 billion came from sales of electric cars. Compared to the same quarter of 2020, revenue almost doubled, as did the number of cars sold. The profit in the third fiscal quarter amounted to $1.1 billion in profit, although a year ago this figure was equal to $100 million. However, it should be noted that with such rather modest profit indicators (incommensurable with Apple or Microsoft), Elon Musk's company is not much inferior to the two tech giants in terms of capitalization. Its capitalization is now $620 billion. This suggests that Tesla shares are highly overvalued, and investors are buying them approximately like bitcoin, hoping that they will continue their growth. Thus, we conclude that the growth of Apple or Microsoft shares is much more fair and justified than that of Tesla. Thus, the share price of the iPhone and Windows manufacturer is likely to continue to grow, but Tesla shares are unlikely to do so. At the time of writing, Tesla shares were trading at $644 apiece, Apple shares at $146 apiece, and Microsoft shares at $286 apiece.