Analysis of Reddit’s Updated Mega-Cap Tech Net Income Comparisons

This analysis is based on a December 12, 2025 (EST) Reddit post [1] that used Macrotrends and StockAnalysis.com data to compare GAAP net incomes of U.S. mega-cap tech firms, updated after Oracle (ORCL) missed Q2 FY2026 earnings and Broadcom (AVGO) beat Q4 2025 earnings. The post noted GAAP impacts like Meta’s tax charge and Broadcom/AMD’s acquisition amortization.

• Tesla (TSLA):
  GAAP net income declined from a 2022 peak of $14.999B to $5.079B in 2024 [0], supporting the post’s bearish long-term view for the mega-cap.
• Apple (AAPL):
  Net income volatility (2022: $99.803B; 2023: $96.995B; 2024: $93.736B; 2025 TTM: $112.01B) [0] aligns with the post’s hypothesis of hardware release cycle impacts.
• Palantir (PLTR):
  Net income grew from losses (2021: -$520.379M) to $1.095B TTM 2025 [0], justifying the post’s claim that its small net income is normal for a smaller, growth-phase company.
• Market Impacts:
  Oracle’s earnings miss led to a ~10% stock drop due to higher AI costs [2], while Broadcom’s 28% YoY revenue increase (to $18B) and 65% YoY AI revenue growth (FY2025: $20B) [1] confirmed strong AI demand, though shares initially declined post-Oracle’s news. Tesla also faced a Morgan Stanley downgrade to Equal Weight on December 8, 2025, citing valuation concerns [0].

1. GAAP vs. Non-GAAP Perspective:
   The post’s focus on GAAP net income overlooks non-GAAP metrics widely used by tech companies, which may present a more favorable profitability view (e.g., excluding acquisition amortization for Broadcom).
2. Magnificent Seven Divergence:
   The critique of the grouping’s net income alignment could prompt investors to reallocate portfolios based on individual firm profitability trends rather than collective classification.
3. Size vs. Growth Phase:
   Palantir’s growing net income contrasts with Tesla’s decline, highlighting how profitability benchmarks differ between small growth firms and mega-caps.

• Risks:
  • Tesla’s declining net income raises concerns about profit sustainability amid intense EV competition and price pressures [0].
  • Oracle’s elevated AI costs may compress margins if not offset by revenue growth [2].
  • Magnificent Seven portfolio strategies could face volatility if divergence in profitability trends gains investor attention.
• Opportunities:
  • Broadcom’s AI infrastructure growth positions it as a key beneficiary of ongoing AI investment [1].
  • Palantir’s transition from losses to consistent profits signals potential momentum in its growth trajectory [0].

This analysis consolidates the Reddit post’s claims with supporting market data, showing Tesla’s net income decline, Apple’s cycle-driven volatility, and Palantir’s growth-phase profitability. Oracle’s earnings miss and Broadcom’s AI-driven beat highlight divergent trends in mega-cap tech earnings. Gaps include missing net income data for all Magnificent Seven members (NVDA, MSFT, GOOGL, META) and the need to evaluate non-GAAP metrics for a complete profitability picture. No prescriptive investment recommendations are made.

[0] Ginlix Analytical Database
[1] Yahoo Finance - Broadcom Shares Down 3% Thursday After Oracle’s Earnings Disappoint
[2] Yahoo Finance - Oracle Stock Sinks On Track For Worst Loss Since Early 2000s