For over a decade, Amazon was the odd one out when it came to profit margins amongst the big tech giants. Online retail is a high volume, low-margin business and Amazon could not compete with the software leaders when it came to free cash flow generation. But that has started to change. Take a look at the image below, showing the massive surge in cash flow that is underway at Amazon.

Market scorecard US markets closed lower last night following slightly hotter-than-expected US inflation numbers. This means that the Fed's work to tame inflation is not done and the pivot to cutting interest rates has been pushed out by a few months. The news dragged down all eleven sectors of the S&P 500. Since we've been at all-time highs, weaker trading days are sometimes ascribed to "profit taking".

Amgen's results from last week weren't as exciting as Eli Lilly's, but were still decent, with revenue and profit both higher than analyst expectations. Revenue was up 7% for the full-year, driven by record sales for 18 of their brands. We like Amgen because it isn't a one-trick pony.

Market scorecard US markets cooled off from record highs yesterday. Tech stocks took a breather, and defensive sectors like utilities, consumer, and energy went up. Nike was 2.6% higher and Airbnb rose 4.2% ahead of results. ServiceNow, Adobe, and Tesla were the laggards.

Hermès had another année exceptionnelle in 2023 with total revenue reaching EUR13.4 billion, up 21% compared to 2022. This can be attributed to its affluent customer base, whose spending habits are largely unaffected by economic uncertainties.

Global coffee chain Starbucks had results out last week and the numbers were reasonably well-received. Global revenues were $9.4 billion for the three months and profits rose by 22% due to various efficiency improvements. They will pay out a nice quarterly dividend, at an annual yield of 2.34% per annum.

Market scorecard On Friday, US markets closed in the green again as technology shares carried the market higher. The S&P 500 ended above 5 000 points for the first time, bringing its returns this year to 5.4%, while the tech-heavy Nasdaq has risen 6.5% so far. Both indices are up 14 of the past 15 weeks, the longest such stretch since 1972 for the S&P 500.

Arm Holdings shares saw a remarkable surge yesterday, shooting up 48% to a new record high after a surprisingly optimistic forecast. The company's expansion beyond smartphones has significantly contributed to its growth and profitability.

Pharma giant Eli Lilly had results out earlier this week. These are becoming highly anticipated by the market because of their fast-growing weight-loss drug Zepbound, along with the more established diabetes drug Mounjaro. Those drugs both have the same active ingredient.

Market scorecard US markets rose slightly on Thursday, as positive earnings announcements continued to drive share prices higher. The S&P 500 briefly breached 5 000 for the first time (intraday) but finished slightly below that level. The index is now up 4.8% year-to-date. Chip-maker Arm Holdings was a standout performer, rising by 48%.

Medical device company Stryker demonstrated a robust performance in the fourth quarter, with reported net sales increasing by 11.8% to $5.8 billion thanks to rising demand for elective surgeries. Stryker has been a Vestact-recommended stock since January 2014, exactly a decade ago.

Market scorecard US markets continued their steady march higher yesterday. Too lovely! Notable gains came from Meta (+3.3%), Nvidia (+2.8%), and Microsoft (+2.1%). On the flip side, the losers included Amgen (-6.4%), Gilead Sciences (-4.3%), and Comcast (-3.5%).

During the recent Google results coverage, I mentioned how AI is helping advertisers improve their conversion rates. Two weeks ago, Google announced the expansion of Gemini (their most capable AI model) into Google Ads. Beta access is now available in the US and UK and will be rolled out to global English-language advertisers over the coming weeks.

Market scorecard US markets moved slightly higher yesterday, resuming their rally after Monday's brief pause. Stocks in the materials and real estate sectors advanced. Some of the biggest winners in the S&P 500 were UPS (+4.9%), Pfizer (+3.5%), Starbucks (+3.4%), and Nike (+2.9%). The biggest losers were Adobe (-3.7%), AMD (-3.65%), and Charter Communications (-4.4%).

It's been 20 years since Mark Zuckerberg founded Facebook in a Harvard dorm room. The holding company stock, now called Meta, also happened to rocket 20% higher after it posted stellar results last week. They were truly impressive numbers.