Overview of Earnings Reports from Four Tech Giants
This Wednesday and Thursday, four of the so-called “Seven Magnificent” companies will report their results. Experts predict positive outcomes, but these tech giants face challenges ahead.
Companies Reporting and Their Recent Performance
Microsoft and Meta will report on Wednesday, while Amazon and Apple will follow suit on Thursday. In the year so far, Microsoft’s stock has surged by 21.61%, Meta’s by 19.55%, and Amazon’s by 5.3%. These gains have contributed to the S&P 500’s 8.3% year-to-date increase, despite Apple showing a 15.63% decline.
Market Analysts’ Perspectives
Felipe Mendoza, a financial markets analyst at ATFX LATAM, stated that the current market environment is more intense than usual and potentially overextended. As a result, not only will the positive results be evaluated but also whether they come with clear perspectives and projections, as well as defenses against the new geopolitical and trade risk landscape.
Monex Casa de Bolsa analysts described in a note that investor sentiment towards these reports is positive for the technology and financial sectors, but it will be crucial to assess data from other companies, especially those that have significantly revised their earnings growth projections for this year.
They added that, despite attractive expectations, challenges persist such as lower growth expectations in the U.S. and globally, less attractive operating margins, monetizing artificial intelligence, and recent news about AI from Chinese companies.
Significance of Tech Giants’ Earnings
These four tech companies are collectively valued at $11.28 trillion, representing 20% of the S&P 500 index of the largest U.S. companies.
Last week, Alphabet reported its results and added another quarter with double-digit growth, driven by artificial intelligence (AI) advancements. However, experts from Valmex Casa de Bolsa anticipate a negative impact on Alphabet’s revenues due to high comparable bases from U.S. election spending.
