I'm excited about this week. The next five days around half the stock market is reporting earnings. Many of the biggest companies in the market, the biggest drivers of the market, they're giving us some insight into how they're doing. That's all earnings reports are, is a look inside the company at how things are progressing.
And I think that's a lot of fun to look at because as an investor, I want to see that my companies are moving along, gaining in their earnings per share, gaining in their free cash flow per share. They're gaining more customers. The mote is widening. I want to see all those important metrics improving over time and earning season gets us a chance to get more data points on our companies, which I think
is really, really fun. So this next 5 days is going to be a very busy, hectic, important week and it's going to drive the market either further up or things are going to stagnate. And we might have a little bit of a sell off because many of the biggest, most important companies are showing what they're doing. Now if we look specifically at the week and what's reporting earnings, you can see the significance of this.
We have some of the biggest companies highlighted here, but I also underline the ones that I think are the most significant. Starting off the week, we had Sofi just report earnings, they're up big. So that's a good start to the week. But then moving into Tuesday, we get to some bigger companies. We have MSCI there. I highlighted this one because MSCI is an industry business similar to S&P Global and it is an incredibly strong business.
I think that thing is a genuine compounding machine. So it's one that I keep on my watch list. I think it's a wonderful company. I want to see how it's doing. Now we have some other companies that are blue chip average, S&P 500 companies, JetBlue, UPSGM, Pfizer. I'm not as interested in those ones. I want to look at big tech, Microsoft, AMD, Google, Starbucks, and then I'll also I have to take a look at Canadian Pacific because I'm invested in
that one. But this day, Tuesday of this week, Microsoft and Google reporting earnings is going to be huge. Microsoft has to do well, and they usually do. So I'll be going over my predictions of Microsoft what I think Azure growth will be. I'll also be looking at Google. What I expect to see with tightening up their business a bit, cutting costs and growing their cloud business, I have high expectations for Google as an investor in that company as well.
And then we get to see how the food companies are doing. Starbucks will be a tell of how well Chipotle will do and how well Texas Roadhouse will do. That's the biggest food chain in the world. Starbucks is massive. It's bigger than McDonald's. So this company's dramatically important to the food industry. Moving on throughout the week, on Wednesday, we have a lot of, again, your average blue chip companies. We don't have time to go over
all of these. So we're not going to be talking about Boeing or Qualcomm, you know Aflac, all these companies. The one that I highlighted was MasterCard because I'm invested in that company. I want to see how they're doing. And then Thursday, that is the other big day this week, Thursday, we have Apple, Amazon and Meta reporting earnings. Apple and Amazon are two companies that really move the market. These are massive, massive
companies. With Apple. We want to see resumed growth for a company that has stalled with Amazon. We want to see good ads business growth and we want to see, of course the Azure cloud business. A lot of people focus on the cloud, but I think the ads business is equally important. So we'll be looking at the specific numbers with those two. And then finally, we have meta, which is going big into AI. They're buying a lot of chips from NVIDIA. They're trying to create a big
AI powerhouse. So we have a busy week to get into. We're going to be going over all of those companies in this video left to right, Monday through Friday. I think it's going to be a fun 1 to get into. Now let's go ahead and start off the week by looking on Monday, Monday before market open. The most significant earnings report was Sofi. This is like a financial institution.
So it's like Ally Financial, but they have some technology aspect to it where they create software for managing investments in that type of stuff. So it's a fintech company in some parts. I view Sofi as mostly a bank. I think it's mostly a bank with some financial technology stuff mixed in. So I don't find it the most attractive investment, but I am excited about how the company's doing. Today. It's up 22%. It had a very rough start to the year, but it's recovered just in a day.
So it's basically flat this year. Now we have a note here from Qualtrum. This says that Sofi shares are trading higher after the company reported better than expected Q4 revenues and that's what I expect with these type of companies. The only reason there's going to be a big jump in a company like this up 22% is because they really beat out investors
expectations. They reported something much better similar to Netflix reporting that they gained 13 million subscribers when the Street was expecting like 9 million. That's such a massive beat and expectations the stock jumped as a result. So if you're investing in a company, that's the biggest reason it's going to change after market close. Now in terms of analyst estimates, this is something that I recently added in the Qualtrum.
We have a new section here. If you Scroll down below the charts, it says analyst estimates right here above the new section and you can see the current quarter, that's the upcoming one. Right here you can see the current year, this is 2023 and then you can see next year, 2024 for each company. This will show you the number of
analysts covering this company. In this case, it's 12 analysts covering Sofi. It'll show you the average estimate of all those 12, and then it will show you the low and the high. The reason that I included the low and the high is so that you can see a range. You can see how how much of A discrepancy or how much of A consensus there is with the estimates. If there's a really low low and a really high high, that means that analysts are guessing. They don't really know.
So the average is just the average of a bunch of guesses. But then in some companies like Microsoft or in this case Sofi, the average estimates pretty close to the high and low. So there's a pretty close consensus between analyst estimates. In this case, it looks like Sofi was expected to earn around a loss of $0.01, so they're expected to lose 1 cent in earnings per share.
When they reported earnings, they actually gained 2 cents per share, so they beat their earnings per share by around $0.03, which of course is a big beat. Then if we look at the revenue here, we can flip over to revenue again. We have the same thing. The number of analysts, the average low and high, they're supposed to earn between 538 million to 606,000,000. That's a pretty big range. That's a range of $60 million. So the analysts are guessing the average was around 562 and Sofi
reported 615,000,000. So Sofi beat not only the average analyst estimate, they beat the high estimate, They came in higher than the highest estimate from analysts. So this was a massive beat by Sofi. And if we look at that 615, that's really good. The next one is going to be right around here. So a big jump in revenue for this company. If I was invested in Sofia, I'd be very satisfied with this report. Next up before Tuesday morning,
we have MSCI. This company right here, I consider a genuine compounding machine. The reason why is because it's a huge indicee business of mostly foreign markets. So the way that S&P Global controls the Dow Jones and the S&P 500 indicee, they license that, they get a little bit of money, they license it and get a little bit of earnings every time you buy the S&P 500.
Well, that's something that MSCI does for all of these foreign exchanges and they have these huge secular trends, these huge tailwinds of growth into that category. And while they're doing this, it's a very capital light business. So if we look at the metrics, their revenue continually grows as more and more money moves towards investments, more and more ETFs are linked to the MSCI indices. You can see the revenue growing over time at a steady pace and you look at their expenses and
their expenses are very low. So it's a very good business overall. Now if we look at the analyst expectations for this company, we have earnings per share hair the low of $3.14, the high of $3.53, average around $3.33 for the quarter. If we look at that on the earnings per share chart, $3.33 would put them, let's see this right here. Last quarter was $3.27. So right about there, this is where it would put their next quarter, which if you look at this, this is a beautiful chart.
Their earnings per share just grows and grows and grows. There's a couple quarters because of maybe taxes or one time events where it goes down a little bit, but you see this nice trend. This is a compounder, a company that has predictable, reliable growing earnings per share. They have good cost structure control over their expenses and they're expected to grow right in line business as usual, just
like every other quarter. Now if we look at the revenue expectations for this next quarter, we have a lowest 637,000,000, a high of 660,000,000 and the average estimate of 651 million. So let's go ahead and take a look at how that looks on the chart. 651 million, we'll put it right above last quarter, which was 625 S Again, analysts are expecting that the revenue in the earnings per share tick up just a bit more than last quarter. So they're not expecting huge explosive growth.
They're just expecting things to continue ticking up quarter after quarter. And with the cost control this company has, that leads to huge cash flows. So as they grow, they have very reliable predictable cash flows. They issue a lot of buybacks, which grow their free cash flow per share at a faster speed. So this is one that I think is going to do just fine. I'm not concerned about MSCIS earnings. It might go up a little bit above estimates, a little bit below.
Either way, I think they'll grow continually quarter after quarter. They're going to gain a lot of free cash flow per share. This is a company that I will buy if it gets into a big enough dip. So I'll be looking at the price of it, hoping that there's some fear in it, some problems that it dips big and I might enter a position into that one. Now after MSCI on Tuesday market close, we have the big one, Microsoft reporting earnings. I've called Microsoft the poster child for the perfect
fundamentals for a company. In my opinion, when you're looking at companies and doing analysis, when I bring up Microsoft here and I just take a look at all of their metrics, it's nearly flawless. I can find a couple flaws, and that's only with the amount of CapEx that Azure requires. It's a little bit more capital intensive than most businesses, but that's about it. I mean, you're being hyper critical if you're trying to find flaws in Microsoft's
fundamentals. Every chart moves up and to the right. They have far more cash than they do debt. They pay dividends, they do buybacks, They grow their earnings per share. They're incredibly reliable. This is a company that has over 80% of revenues as recurring revenues, subscription revenue. There's almost no flaws in the business. I find it virtually, in fact, very close to the perfect type of business. So of course, I've invested in the business for a long period of time.
If we look at my holding care, I've held Microsoft around five years. So my early buys on it did particularly well, but that was with a little bit lower amounts of capital. When Microsoft dipped down to $220, I put a lot more into the company. I bought another 200, sorry, 20 or $30,000 of the company. So now I own $66,000 of this company. We're up $23,000 on it. Let's go ahead and take a look at what the expectations are going into Microsoft.
If we look at the analyst estimates, we'll start off with the earnings per share. We have a low of $2.62 and a high of $2.79. It's very close together. These aren't that different of estimates. That means that analysts have have a basic consensus on what they're going to earn, around $2.74. That is the average analyst estimate. Now it's likely going to be a bit above that. Microsoft typically beats on their earnings per share.
If you look at 10 recent quarters, they will have beat on their earnings per share and around nine of them. So they're very consistent, although not perfect at beating in their earnings per share. And if I look at the average estimate of $2.74, I'm going to say that they come in at $2.78. We'll say that they come in there. Let's take a look at what that would mean for the earnings per
share. We have right here, the long history of Microsoft. Let's zoom into the past 10 years, $2.78 would put them right about here, so almost $3. And then if we look 1234, that's a sizable gain over last year. So the earnings per share are jumping year over year and you can see a long trend of Microsoft gaining in their EPS every single quarter. Now if we flip over and look at the revenue of the company, the analysts are expecting between
60.1 billion and 61.2 billion. So we have a little bit of a range there. They're expecting on average 61 billion dollars, $61 billion would be an all time high in revenue for Microsoft. In fact, it would put them right around here. So that'd be a pretty big jump. That's going to be partly because of the acquisition, the new revenue line coming in for the company.
So not all of that is organic, but still it's going to be a record high for Microsoft. And as per usual, I think they'll beat the revenue estimate maybe by a tiny bit, but usually they come in just above it. Now there are other aspects of Microsoft that are really important, probably even more important than their earnings per share and their revenue. That is the key indicators like their Azure growth. Azure needs to grow by 29% this
quarter or more. If it comes in a little soft 28 percent 2726, you'll see some hesitancy with Microsoft. If it comes in way disappointing 25%, something dramatic happens like that, then Microsoft's going to sell off. Investors won't be happy with that. My expectations are that it's going to be very close to in line. I believe it will be within 2%. So I'm not hoping for any surprises here. With my holding, I'm hoping that Microsoft reports its numbers mostly in line with expectations.
No big surprises. Either way would be great. Next up we have AMD. This is not a company that I've ever held because I think it's too unpredictable, but this one's finding some explosive growth this year. Let's take a look at AM DS expectations. If we go over to the earnings per share, they're expecting a low estimate of $0.75 per share, a high estimate of a dollar one and then the average is $0.83. This is a very big range of earnings per share estimates so analysts don't have a huge
consensus here. When I bring up the earnings per share chart, this is the reason that I don't own AMD. You can just outline this and see the roller coaster ride of their earnings per share over time. Some investors like to time the lows and highs. I know throughout history and studying that trying to time these type of companies is near impossible to do consistently and at some point you're going to be thrown off.
So my lack of confidence in timing the ebbs and flows of this roller coaster ride keeps me out of the stock. If we look at their latest quarter though, we zoom in, in the past ten years they said $0.83 I believe if we take a look at it again, yes, $0.83, that puts it right about here. So we have earnings per share that are going to jump big time,
huge jump in earnings per share. This is going to be a very big quarter for AMD, and analysts don't know for sure where this is going to come in. Now my guess is they're going to beat the analyst estimates. They're going to come in above, closer to the high end of the estimates, So between $0.80 to a dollar. I think they'll report that. The reason why is because there's a ton of demand for what AMD is creating. This company has a product that
a lot of companies want. Right now, it's not as good as NVIDIA. They're not at that level. But there's still massive demand for AMD. I see lots of consumer demand for it as well. They have pricing power right now. They can determine in large part what their earnings are. So I would be shocked if AMD came in as a huge disappointment. Now moving on from Microsoft and AMD, the Next up we have is Google, and I think that this is going to be a very followed company.
A lot of investors are in Google and I believe for good reason. It seems like an obvious pick. Why wouldn't you want to invest in Google? And I agree. I think it's one of those companies where it's an obvious great company right before your eyes that you can invest in. Now in My Portfolio, I have the passive income portfolio, which is my main one. I also have the story fund, my secondary portfolio of which it has around $200,000 of value,
$41,000 in gains. And my third largest position, which is a large concentrated position is Google. The reason that I invest in Google is because I think the company is undervalued and has great growth potential and because it has a lot of inefficiencies that can be corrected. So this is already a great company that can become a little bit greater if they correct a lot of inefficiencies in the business itself. So I think there's a lot of tailwinds and ways that Google
can earn more money. Now this has been a successful holding so far. The holding size is $36,000, but around 10,000 of that is gains. So a significant portion of this holding already is gains. I'm really happy with how Google has done so far, but this is one of those cases where even though the stock has gone up, I don't think all the gains are behind it. I think it has more room to run. There's a lot more upside with this company.
Let's first go ahead and take a look at what the analysts are expecting for this next quarter. We look right here. We have a low expectation or low estimate of $1.42 and earnings per share. A high estimate of $1.75 S between $1.40 two $1.75 earnings are likely going to land somewhere in there. The average is around $1.63.
Let's go ahead and take a look at the earnings per share and see how this stacks up. I like looking at the long term history so you can see trends over time with these companies and get better. Context. Last quarter was $1.55 S $1.63 would be right around here, just a smidge over $1.60 there. That's what it would look like and that would be an all time high earnings per share for Google and that would be a good continual recovery from 2022.
So if they hit their analyst average estimate or coming above that, that's going to be a very good story for Google. Good continued growth overtime all time high earnings per share, it's just going to be a really good thing for them. So hopefully, Google will tell a story this quarter of the company's fundamentals improving their earnings per share, growing the revenue coming in line. And then there's some other important aspects that I want to see this quarter, primarily with Google.
The big three things that I'm looking for, I'm looking for strong cloud growth, 2223% in line with estimates. I want Google Cloud to do really well. And in terms of the cloud business, I want them to have more operating leverage with it, more profitability, higher margins. I want the cloud to contribute
to the bottom line more. So hopefully they make it a little bit better cost structure because the cloud business at Google has been a big money sink for a long period of time, but now it's finally earning money and contributing to the bottom line. So I want the cloud business to grow between 22 to 23%, the higher the better.
I want them to comment on AI, Gemini and show that their business is not going to be disrupted by other people trying to create large language models and have text boxes. I think that they'll be able to illustrate that. And then the final thing that I'm looking for personally with
Google is better cost control. If Google can show these three things, strong cloud growth, great engagement with their search business, that they're not being disrupted, that they have the AI tech and they can show great cost control, I believe this stock can do a lot better. Again, it's already up 10% this year. It's doing really well. It's having a huge recovery, but the valuation of the company is not that demanding. It trades out of 23, four PEA, 3% free cash flow yield.
That's not demanding in today's market. Google just needs a good report and I think they'll do really well Now. Next up again on Tuesday, we have Starbucks and this is one that I like paying attention to because Starbucks is a big indicator for how the entire food and consumer industry is doing.
I get to see how these quick service restaurants are doing and it's very indicative of McDonald's, Chipotle, Texas Roadhouse. Not perfectly equal, but it's going to be a nice weather vane for it. Now if we look at Starbucks, let's go ahead and take a look at some of the analyst estimates here. For earnings per share, there's a low of $0.88, a high of a dollar. One average is around $0.98.
If we bring up the earnings per share chart, we can see the long history of Starbucks. 98 cents would be right around here, so a little bit lower than the past two quarters, but up a lot since four quarters ago. So year over year, that's going to be a really big gain. We have revenue estimates of a low of 9.5 billion, a high of 9.8 billion, the average of
9.71. So we're going to see a nice step up in revenue to show that this company continues to compound its revenue and grow quarter after quarter after quarter. Now if I have to guess, I again think that these type of companies are going to do well and I've been beating the same drum for a long time. I've been saying the same message. I thought that last year food companies were going to do really well. Starbucks, Chipotle, Texas Roadhouse, you name it. Any top food company that has
great execution. I think there's lots of demand, lots of people wanting to spend money on these companies. They've made it a big part of the routine. We have lots of young single adults or there's dual house income, not as many children. There's more secular trends that make it so that there's more affordability for Starbucks.
So I again think that these type of companies are going to do really well now after Starbucks, we have another company reporting earnings again on Tuesday, which is Canadian Pacific. This again is going to be a very busy day. Tuesday is such a huge day and I know that Canadian Pacific's earnings report is going to be overshadowed by Microsoft and Google, but it's still an important company to me because I have a significant investment in it. The thesis on Canadian Pacific
is very simple. It has a great management team. I love the CEO of the company. He's done magic with Canadian Pacific with their new merger. He has more territory, more room to show what he's capable of. So Canadian Pacific's a great asset with a great management team and I think that they can create growth with those two things combined, I have currently $33,000 holding in it and $700.00 of gains. This has been my worst performing position over the past two years. This is it.
Canadian Pacific is my worst investment over the past two years. It's still in the green, so I haven't lost money on it, which I'm happy about, but it has not been a strikingly great performance. It's been basically flat. I bought into the company in 2023. Now looking at Canadian Pacific, I'll outline the problem here. The earnings for sure on the low estimate is $0.78. On the high estimate it's $0.89 and the average is $0.85. Let's say that they earn $0.85
and see what this looks like. $0.85 is right here, so we have between $1.80 there. It's going to be right there, right in line of where they've been for the past two years. So even if they meet the analyst estimates, this is nothing special. And that's the problem with these companies. They're not growing earnings per share as fast as investors would like and Canadian Pacific needs
to accelerate this growth. Now if we look at the revenue estimate, the low end is 2.59 billion, the high estimate is 2.75. The average estimates around 2.7 billion. When we look at that over the history, this large jump in revenue right here is not organic. That was from an acquisition and they're expecting right now 2.75, which is right around there. So a little bit of a bounce back, but overall a huge growth year over year.
This is going to normalize over time as the acquisition works through. So the story with Canadian Pacific is them getting through this acquisition, cutting costs, getting new clients, making magic out of this acquisition. If they're not able to, if they just show quarter after quarter that they're coming in under the estimates, they're not meeting their growth expectations, they're not able to make magic happen with this acquisition, then I am going to dump the stock. Eventually.
I'll still make a gain from it, but I don't want to hold so much capital in companies that are lagging behind. I need an All Star team where every single holding in My Portfolio is moving along quickly. I don't want companies that are falling behind struggling with
their fundamentals. So we're going to see what Canadian Pacific is. Is this a company struggling with fundamentals, struggling to get the acquisition under control or is it going to be an All Star player that really is moving things along Now it's going to be tough to judge in this one quarter, but this will be one more data point along this story. So I'm going to be looking closely at the developments happening with that company. After Canadian Pacific, we have MasterCard.
I love this digital duopoly. I think they're two of the most misunderstood companies by retail investors and two of the best companies in the market. The reason that I think MasterCard is so misunderstood by retail investors is because retail investors think that MasterCard issues credit cards. MasterCard does not issue credit cards. Banks do. They think that MasterCard makes a ton of money and they charge 3% to merchants. MasterCard does not make a ton of money by charging 3% to
merchants. They have the minority take out of the banks. So MasterCard is a digital company that networks, banks, merchants and customers together. They don't issue credit cards. They never have. And they have a lot of other services outside of that digital network where for example, they do value add services like knowing your customer cybersecurity, seeing trends in industries. They have so much data that they can sell to other companies.
So they also have this nice reoccurring subscription business, which is very attractive in a way. It's similar to Moody's and S&P Global where they have one big core business and then they leverage that to sell a lot of unique data to companies. There's not a lot of companies that have the same data as MasterCard, so that gives them a unique competitive advantage in their subscription businesses. So I like both parts of this company.
Mastercard's a little bit unique compared to Visa and that they have more international growth, but both of them are fantastic. I hold this company as a $70,000 position and I'm currently $11,900 in the green and I'd feel fine buying more MasterCard today. I really, really like this company. We saw Visa's earnings. If we look at Visa this year, it had a dip after earnings and people thought, what do I think about this dip? I thought it was a big nothing, Completely nothing.
Didn't matter. It was like a 1% dip when Visa had been up 5% year to date. So it was nothing. Visa's earnings were right in line of expectations. Business as usual, nothing unexpected. I expect the exact same for MasterCard. Business as usual, right in line, barely above or below analyst estimates, nothing unusual. We can look at the earnings per share estimate to just get an idea of what we're looking at here. The average analyst is expecting around $3.
If we look at that, it's going to be again right around here. So going up over time, a lot more than the past year, growing as usual. This is what a compounding machine does, this nice consistent earnings growth over a long period of time. I love seeing that with these companies In terms of the revenue, we can take a look at that as well. The low estimate is 6.14. The highest min is 6.47 and then the average is 6.27 billion. We can look at how 6.27 billion looks.
That would put it just above here. We have last quarter at 6.5 right there, two quarters ago, 6.27. So it's going to be similar to two quarters ago right there. And of course year over year, that's a nice gain year over year. MasterCard is a truly wonderful business and I'm going to own this company until they reveal a reason why they're no longer wonderful. But I don't expect them to do
that in this earnings report. Now moving on from MasterCard, we get into the next very busy earnings day of the week, which is Thursday. This is like Tuesday. It's going to be a chaotic, messy, busy day. We have Apple's earnings report after market close. Now, if you followed the channel for a while, you'll know that I owned Apple. I've owned this company since the very beginning. I bought my first share of Apple in 2017. It was $200.
I bought a fractional share of the company and it's grown and grown and grown. Over the past five years, Apple has gained over 300% gains. From 2017, it's gained over 500%. So this company has been just incredible. I mean it's blown away expectations over and over again. Over that same time period of me owning this company, Apple has averaged a growth of free cash flow per share of above 15%, so around double what the S&P 500 has.
SPY gross free cash flow per share on average around 8%. Apple has been at 15%. Now I have a current holding size of 55,026 thousand of that being gained. So this has been again another big winner in the portfolio. Now let's go ahead and take a look at Apple this quarter and this year. I first want to look annually to see how we believe Apple's going to close out the year. If we look at the earnings per share, the average estimate for
the annual is $6.39. That's what analysts are expecting, which if we look at the graph here, that means that we believe 2023 will turn out to be right around here, just a nice step up around 6% growth year over year. That's not fast growth for Apple. In fact, that's very slow. You can see historically they've had much bigger jumps, especially in 2020.
Apple certainly had some pull forward in 2020 that they're still dealing with, but it's nice to see that they're resuming a little bit of growth this next quarter. And then we can look at the revenue for Apple. This is another issue for the company. We look at the full year 2023 average estimate for the revenue and we get 400.5 billion. So that's what the analysts are
expecting. When I look at this overall 400 billion, if they're able to do that, you can see that it's just a slight step up from 2022. So not much growth, just a few percentage of revenue growth. So the story of Apple in 2023 is one of slowing growth, slow top line growth, slow bottom line, slow revenue, slow earnings per share, slow free cash flow per share. Tim Cook's doing everything he can to continue growing this big beast of a company.
He's coming out with a new product, the Apple Vision Pro. He's pushing a lot of services. He's doing a lot of buybacks to grow your equity in the company. He's doing everything right. So this is at no fault of his own. This is no issue with Apple's management. The big question for investors in Apple is can this company continue to grow because evaluation is not going to expand that much. So it's going to have to grow its intrinsic value by revenue, free cash flow per share and by
the Moat improving. That's a question for me as well. I've done really well with Apple over the past five years, but I've not bought this company in the past year because the valuation has gone up and the growth has slown. And I have other companies in My Portfolio that are growing much faster than Apple. So I think this quarter will be fine. My guess is that Apple likely beat their estimates, but I'm
looking at a longer trend here. I want to see Apple continue to push services, continue to push growth if they're not able to for another year and it looks like the company has reached more of a mature slow growing phase and I'll likely start to trim my position and find other holdings. But I'm still hopeful that Apple can continue some growth. We'll have to see. Next up after Apple, we have Amazon. This is another big holding of
mine. I hold Amazon in the story fund and it is a large position, 67,000 dollars, 9700 of that being gains. So this one has been a winning position, but it's been a bit volatile. Amazon has been all over the place for the past three years.
I believe the company is undervalued and I'm valuing that based off of projecting around $70 billion of free cash flow in 2024. So I think this year is going to be a very big year for Amazon. Let's go ahead and take a look at how they plan on closing out 2023. If we look at the analyst estimates of the earnings per share, you can see that there's not a huge consensus here. The range of the earnings per share estimates are very wide, the low end being $0.32, the high end being $0.87.
So a huge discrepancy, huge range in the an assessments with an average around $0.62. Do these analysts know where this earnings per share is going to lie? No they don't, but odds are it's going to be somewhere between this range. If we look at this on the chart, this is massive growth in their earnings per share on a year over year basis. So round right here is what the analysts are expecting. 1234 quarters ago, their earnings per share was basically nothing. So we're going to see a big
spike in EPS year over year. That's good, but that's not the most important part of Amazon. The revenue I actually believe is more important. We have revenue estimates on the low end of 146 billion, On the high end 163 billion. The average is 157 billion. This is going to be a big quarter for Amazon, 157 billion. It's right around there. So a nice tick up from all these other spikes year over year over year. So Amazon is a fast growing company. It's growing its top line, it's
growing its bottom line. But the most important thing is it's growing the high margin portions of its business. AWS needs to grow around 12% or more. We see really soft AWS growth in the single digits. That would be bad. If it's 10% or more, I think investors will be OK with that. But we really want to see AWS growth of 12% or more. Then we also want the ad revenue to come in very strong. The ad revenue is another big
part of Amazon's business. I think if we see strong revenue growth, strong AWS growth and strong advertising revenue, we're going to see very good results from Amazon. This is a company that I'm very bullish on this year. Lots of free cash flow, lots of growth ahead of it, and I like the valuation of it currently. But be warned, Amazon's a very difficult company to predict quarter by quarter, so I'd not bet on this one in the short term.
Now after Amazon, we have meta reporting at the same time. So let's bring up meta and take a look at the anal assessments for this one. Next quarter on the low end we have $3.94, on the high end we have $5.22. That's a big discrepancy as well. So we have quite a range there. The average is around $4.69. Let's take a look at how this stacks up on the chart. $4.69 would put it right around here at an all time high, which is
very good to see. So if they hit this average analyst estimate or anywhere above that, that's really good for the shareholders here. It shows not only recovery over the past year, which is important because the earnings tanked, but also just generally a nice trend of growing earnings per share. So this still is a story of a company that's growing earnings at a steady cadence.
Now on the revenue, we have a low estimate of 38 billion, a high estimate of 39 and the average 38.6938 point 6-9 would be an all new high for meta. It'd be right around here. So we'd see strong organic top line growth and strong earnings per share growth if they meet their metrics, which I believe meta will. The company has been very
focused. Zuckerberg has been very focused on appeasing Wall Street, making sure he's doing a good job for them, while also doing the Metaverse and his own different things he's wanting to do. He's done a good job balancing both. For a while he was concerning Wall Street by jumping super heavy into the Metaverse, and that's what caused the stock to sell off. I sold my position in meta, the huge majority of it, right here. So I got out before the huge drop.
Then it came all the way down here, and Zuckerberg turned the stock around by doing the Year of efficiency, by saying that he's cutting costs, he was laying off a lot of employees. He's going to focus more on Wall Street's demands of making the company more profitable on a free cash flow basis, so on and so forth. That was like music to the heirs of investors. And the stock has been on a rip
since then. And this is very similar to what investors want from Google. They want the year of efficiency, better focus, better execution. But Mark Zuckerberg was able to pull off the year of efficiency. It worked super well. The stock is now at $400.00 per share and I think it's still has some room to run if they post a good earnings. The valuation is not capping the progress of this company. It's at a higher valuation now,
but not crazy. I think it still has a decent amount of room to run and that will wrap up the very busy week ahead of us. So if you want to see how this turns out and my thoughts on these companies earnings, I'm going to be digging into the financials, the earnings report going over my thoughts of whether or not the intrinsic value has gone up or down, whether or not the Moat has gotten bigger or weaker. I'll be doing that on many of
these companies. So if you want to see that post earnings analysis, just make sure to subscribe to the channel with the Bell notification on. That's all for this time. See you in the next one.