---
title: "The two major topics that American companies cannot do without in this earnings season: cost reduction and AI."
description: "The number of times US companies discussed cost control issues during earnings conference calls has reached a historic high. Companies are focused on expenditure discipline, but also investing in tech"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/107858373.md"
published_at: "2024-02-12T12:26:07.000Z"
---

# The two major topics that American companies cannot do without in this earnings season: cost reduction and AI.

> The number of times US companies discussed cost control issues during earnings conference calls has reached a historic high. Companies are focused on expenditure discipline, but also investing in technologies that can drive future productivity, such as artificial intelligence. Operational efficiency and artificial intelligence are the most frequently discussed topics, covering industries including software, professional services, healthcare services, and financial services. Some companies are protecting profit margins through cost-cutting measures while reallocating funds to develop their businesses. Some companies are taking measures such as layoffs to improve efficiency and reduce costs. Estee Lauder is downsizing to respond more quickly to beauty trends, Meta is making significant investments in artificial intelligence technology, and Amazon is taking a cautious approach.

Zhitong App learned that according to an analysis by Morgan Stanley strategists, US companies are discussing cost control issues at an unprecedented rate during earnings conference calls as they strive to reallocate funds and invest in new technologies.

A team led by Michael Wilson wrote in a report that mentions of "operational efficiency" by US companies reached an all-time high during this earnings season, as companies focus on expenditure discipline while also investing in "technologies that can drive future productivity, such as artificial intelligence."

Strategists noted a significant overlap between industries that commonly discuss operational efficiency and those that discuss artificial intelligence. These groups include software, professional services, healthcare services, and financial services.

![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20240212/1707739763785519.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

Compiled data shows that Pfizer (PFE.US), BlackRock (BLK.US), and Lam Research (LRCX.US), all constituents of the S&P 500 index, have been promoting operational efficiency during their earnings conference calls this quarter.

Cost control is receiving increasing attention as companies seek to protect profit margins amid hopes of an economic soft landing. Investors have been looking for signs of a cooling job market to gauge when the Federal Reserve will lower borrowing costs, but recent data indicates that the Fed will not ease policy in the short term.

Managing expenses has been a key theme this quarter. Disney (DIS.US) stated that profits this year will increase by at least 20% due to cost reductions; Hertz (HTZ.US) is seeking to lower costs; Levi's (LEVI.US) announced that a new efficiency initiative will include cost-cutting measures such as layoffs.

Some companies are reallocating these funds to develop their businesses. As part of a reform plan, Estée Lauder (EL.US) is laying off employees to respond more quickly to new beauty trends and increase investment in its brands. Meta (META.US) is making significant investments in artificial intelligence technology, while Amazon (AMZN.US) is taking a cautious approach to new investments.

In the field of artificial intelligence, all eyes are on Nvidia (NVDA.US), which is expected to announce its earnings later this month. Arm (ARM.US) stock has been soaring this quarter, mainly due to spending on artificial intelligence that has helped support the performance guidance of this chip design company. Palantir (PLTR.US) is also benefiting from significant demand for its artificial intelligence technology.

As the biggest beneficiary of the artificial intelligence trend, there are high expectations for Nvidia in the market. Analysts widely expect the company's earnings per share to increase by 602% year-on-year for the fiscal quarter ending on January 31. Several strategists believe that the "Big Seven," including Nvidia, need to deliver outstanding performance to continue outperforming the market. Morgan Stanley's Wilson recently included Nvidia, Apple (AAPL.US), Microsoft (MSFT.US), and Google (GOOGL.US) in the list of high-quality growth stocks that the bank's analysts have given a "buy" rating. He has a positive view on this group of high-quality stocks as well as stocks that provide high operational efficiency as an extension.

### Related Stocks

- [EL.US - Estee Lauder](https://longbridge.com/en/quote/EL.US.md)
- [AMZN.US - Amazon](https://longbridge.com/en/quote/AMZN.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 股神巴菲特再現「神準」操作 亞馬遜急跌前大減倉 再沽蘋果美銀 買入一隻媒體股 | 股神巴菲特在卸任巴郡 CEO 後，繼續調整投資組合。根據 SEC 13F 文件，巴郡大幅減持亞馬遜 770 萬股，持倉減少 77%；同時出售約 5,080 萬股美國銀行和 1,030 萬股蘋果，連續第三季減持蘋果。巴郡首次增持傳統媒體股，購 | [Link](https://longbridge.com/en/news/276191227.md) |
| OpenAI 新一輪融資或突破千億美元 據報亞馬遜、軟銀、英偉達及微軟參與投資 | OpenAI 即將完成新一輪融資，預計籌集超過 1000 億美元，估值可能超過 8500 億美元。主要投資者包括亞馬遜、軟銀、英偉達和微軟。融資將分階段進行，預計在本年度內完成。亞馬遜可能投資高達 500 億美元，軟銀 300 億美元，英偉 | [Link](https://longbridge.com/en/news/276297991.md) |
| Envestnet 資產管理公司持有雅詩蘭黛公司價值 1335 萬美元的股份 | Envestnet Asset Management Inc. 在第三季度減少了對雅詩蘭黛公司的持股，減幅為 11.5%，目前持有 151,483 股，市值為 1335 萬美元。其他機構投資者也調整了他們的持股，Federated Herm | [Link](https://longbridge.com/en/news/276105685.md) |
| 機構 “最超配” 閃迪，“最低配” 英偉達 | 據摩根士丹利最新的統計：“機構對美國大型科技股的低配程度是 17 年來最大的” 相比 2025 年 Q4 的標普 500 指數權重，“$NVDA 仍然是機構低配程度最大的大型科技股，其次是蘋果、微軟、亞馬遜和博通，而存儲巨頭閃迪則是 “最超 | [Link](https://longbridge.com/en/news/276289765.md) |
| 巴爾曼美妝推出 Destin de Balmain：一款全新的高端香水 | Balmain Beauty 推出了其首款奢華香水 Destin de Balmain，這是一款花果香調的香水，體現了 Balmain 女性的精神。香水的香調包括成熟的草莓、牡丹和奶油檀香，旨在喚起樂觀和自我表達。可 refill 的瓶子靈 | [Link](https://longbridge.com/en/news/276421841.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
