The company earned 40.375 billion yuan in the first three quarters, but its stock fell 7.03% on the day it released its earnings.
Foxconn Industrial Internet released its third-quarter results after market close on October 29: revenue for the first three quarters was 941.414 billion yuan, up 55.88% year over year; net profit attributable to shareholders was 40.375 billion yuan, up 79.55%. Both revenue and net profit have already exceeded their full-year totals from last year. Looking at Q3 alone, revenue was 383.554 billion yuan, up 57.73%, and net profit was 16.634 billion yuan, up 60.35%—marking five consecutive quarters above 10 billion yuan.
AI computing power is what drove these results: cloud computing revenue rose 75% year over year and 25% quarter over quarter; shipments of AI-ASIC servers rose 1.5 times year over year and 80% quarter over quarter; AI-GPU racks increased 70%; and shipments of 800G-and-above switches rose 80%.
But on the other hand, Foxconn Industrial Internet closed at 45.22 yuan on October 29, down a steep 7.03% for the day, with a total market capitalization of 897.3 billion yuan. By this article’s calculation, the stock is down nearly 26% so far this year. Goldman Sachs had previously maintained a Buy rating and a 12-month price target of 121 yuan.
So on one side, earnings are at a record high and analysts remain bullish; on the other, the stock plunged that day and is down nearly a quarter for the year. Which do you believe more: the 40.4 billion yuan in earnings, or the stock’s 7% drop that day?
Background prices, checked at approximately 13:04 CST: BTC 78464/-2.30%, ETH 2245.65/-3.42%, BNB 720.29/-4.88%. For background only. $BTC $ETH $BNB
Foxconn Industrial Internet released its third-quarter results after market close on October 29: revenue for the first three quarters was 941.414 billion yuan, up 55.88% year over year; net profit attributable to shareholders was 40.375 billion yuan, up 79.55%. Both revenue and net profit have already exceeded their full-year totals from last year. Looking at Q3 alone, revenue was 383.554 billion yuan, up 57.73%, and net profit was 16.634 billion yuan, up 60.35%—marking five consecutive quarters above 10 billion yuan.
AI computing power is what drove these results: cloud computing revenue rose 75% year over year and 25% quarter over quarter; shipments of AI-ASIC servers rose 1.5 times year over year and 80% quarter over quarter; AI-GPU racks increased 70%; and shipments of 800G-and-above switches rose 80%.
But on the other hand, Foxconn Industrial Internet closed at 45.22 yuan on October 29, down a steep 7.03% for the day, with a total market capitalization of 897.3 billion yuan. By this article’s calculation, the stock is down nearly 26% so far this year. Goldman Sachs had previously maintained a Buy rating and a 12-month price target of 121 yuan.
So on one side, earnings are at a record high and analysts remain bullish; on the other, the stock plunged that day and is down nearly a quarter for the year. Which do you believe more: the 40.4 billion yuan in earnings, or the stock’s 7% drop that day?
Background prices, checked at approximately 13:04 CST: BTC 78464/-2.30%, ETH 2245.65/-3.42%, BNB 720.29/-4.88%. For background only. $BTC $ETH $BNB
