An Airport is IPOing?

By Matthew Gutierrez and Shawn O'Malley · January 31, 2024

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Written by Matthew Gutierrez and Shawn O’Malley

The botanist and bestselling author Robin Wall Kimmerer has remarked, “it worries me greatly that today’s children can recognize 100 corporate logos and fewer than 10 plants” ??

We can’t remember the last time someone told us their favorite plant. But big brands? They’re all around us. Credit is due to big brands like Apple, Amazon, and Nike, whose brand values are nothing short of extraordinary.

?? Their logos are recognizable in virtually every corner of the world, and their brand values have a lot to do with their market values: Amazon’s brand contributes about 19% to its total market value, including debt.

Our Chart of the Day highlights some of the biggest brands worldwide.

— Matthew & Shawn

Here’s today’s rundown:

Today, we'll discuss the three biggest stories in markets:

• Microsoft and Google kick off big tech earnings
• Why an airport in Europe is IPOing
• 23andMe’s fall from $6 billion to nearly $0

All this, and more, in just 5 minutes to read.

POP QUIZ

People aren’t quitting their jobs like they used to. How much has the “quits rate” fallen in the last two years? (The answer is at the bottom of this newsletter!)

Chart of the Day

In The News

?? Microsoft, Google Kick Off Big Tech Earnings

Microsoft and Google-parent Alphabet kicked off big tech earnings on Tuesday. Both companies are sitting near all-time-high stock prices. Here’s what you need to know:

Microsoft

Microsoft posted its highest profit growth in over two years, beating on the top and bottom lines, and Azure cloud growth continued to flex its muscles. The numbers:?

• Earnings: $2.93 per share vs. $2.78 per share expected
• Revenue: $62.02 billion vs. $61.12 billion expected

Transformational: MSFT shares have risen 62% over the past 12 months and 292% over the past five years, thanks to a sensational run driven by enthusiasm around its new AI-driven products that could transform how we work. Its Azure cloud business grew 30%, beating estimates.

• Last week, Microsoft became the second company to reach the $3 trillion market capitalization mark.?

Investors continue to bet heavily that Microsoft’s big investments in AI will power further earnings growth. Microsoft’s AI products are “significantly more advanced than what is available from their competitors,” noted one analyst at Bernstein. “It’s not a marketing pitch; it’s proof points.”

Alphabet

Google’s parent company said ad sales ($65.5 billion) were short of expectations, driving a sharp decline (8%) in shares. Still, it beat on the top and bottom lines:

• Earnings: $1.64 per share vs. $1.59 per share expected?
• Revenue: $86.31 billion vs. $85.33 billion

The stock has risen over 40% in the past year and 157% in the last five years.

Google is trying to overcome the notion of falling behind rivals in the AI race. Cloud-computing sales grew 26%, and YouTube, the video platform, earned ad revenue of $9.2 billion, a 16% jump. Solid numbers, sure, but...