To The Moon

Before the start of this earnings season, the market repeatedly hit new highs, leading to overly high expectations for company performance.

As a result, some tech stocks experienced a pullback despite delivering good earnings reports.

Why did these strong results lead to declines instead of significant gains? Would you consider buying the dip? Let's take a closer look together!

$ASML Holding NV(ASML)$

• Q2 revenue was 6.24 billion euros, down 9.5% year-over-year, exceeding analysts' expectations of 6.0 billion euros by 4.0%.

• The gross margin was 51.5%, surpassing both the upper end of management's guidance of 51% and analysts' expectations of 50.6% by 1.78% and 0.98%, respectively.

• Q2 new orders totaled 5.57 billion euros, significantly exceeding analysts' expectations of 4.41 billion euros by 26.30%.

• However, the Q3 guidance forecasts revenue between 6.7 and 7.3 billion euros, which is 10.19% below analysts' expectations of 7.46 billion euros.

$Taiwan Semiconductor Manufacturing(TSM)$

• TSMC's Q2 revenue was $20.82 billion, up 32.8% year-over-year, exceeding analysts' expectations of $20.2 billion by 3.07%.

• The gross margin was 53.2%, surpassing both the upper end of management's guidance of 51%-53% and analysts' expectations of 52.6% by 1.14%.

• Looking ahead to Q3, TSMC expects revenue between $22.4 billion and $23.2 billion, exceeding expectations by 2.97%.

$Netflix(NFLX)$

• In Q1 FY24, Netflix's revenue was $9.559 billion, slightly above analysts' expectations of $9.526 billion by 0.4%.

• Operating margin was 27%, surpassing the forecast 26% by 2.5%.

• However, free cash flow was $1.213 billion, falling short of the expected $1.607 billion by 24.5%.

• The net addition of paid subscribers was 8.05 million, significantly higher than the expected 4.869 million by 65.3%.

• For Q3, the company guided revenue of $9.73B, 0.82% below expectations; but EPS of $5.10 beat estimates of $4.74.

$Alphabet(GOOG)$

• The company's Q2 revenue was $84.742 billion, exceeding analysts' expectations of $84.367 billion by 0.4%.

• The gross margin was 58.1%, surpassing the consensus estimate of 57.3% by 1.5%.

• Google Ads revenue was $64.616 billion, slightly above the consensus of $64.532 billion by 0.1%.

• YouTube Ads revenue was $8.663 billion, falling short of the expected $8.947 billion by 3.2%.