Last week, big tech giants Tesla and Alphabet gave us their big updates—and now it’s time for other members of the Magnificent Seven club to present their report cards to investors.
Meta Platforms and Microsoft announce their earnings after the bell on Wednesday, followed by Amazon and Apple after the market’s close on Thursday.
So, what should you expect the big tech giants to be talking about?
Meta is in the red this year (like the rest of the Mag 7), and the social media giant needs to lay out how it plans to navigate the White House’s haphazard global trade policy.
Management will likely give updates on the firm’s massively successful digital advertising business, and how many new users it's bringing into apps like Facebook and Instagram. Shareholders will also be eager to learn more about the FTC’s case against Meta, and whether or not it will have to divest itself of Instagram.
Finally, investors will want to hear about Meta’s massive AI infrastructure spending plans. The company is expected to shell out up to $65 billion this year.
Microsoft will also provide a look at a future amid tumultuous tariff-induced meltdown and a broader consumer slowdown.
But on the bright side for the company, analysts expect it to fare better than its peers, given the company’s “minimal risk exposure to retail, advertising spending, cyclical hardware, or physical supply chains,” wrote Morningstar analysts.
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Investors will also be eager for updates on the company’s AI advancements, including its recently unveiled AI “agents” that are meant to compete with Google’s own AI workflow programs.
Tariffs, tariffs, and more tariffs will be on investors’ minds when Apple reports earnings on Thursday. Despite Trump hitting China with 145% tariffs, his exemption for smartphones and computers from the duties were a huge relief to Apple investors. But everyone will still want to hear how management plans to prevent investors from getting caught in the tariff crossfire as Apple looks to move manufacturing to India.
You’ll never believe this, but Amazon investors will also be keen to learn how the e-commerce giant will handle tariffs, given that many of Amazon’s sellers are based on China.
Investors will also be keeping a close eye on Amazon’s capex spending. Rumors have been swirling that Amazon is planning to cut down its spending on AI infrastructure, and investors will be eagerly awaiting to hear whether or not management confirms that.
The big picture: All of these stocks have a consensus “buy” rating from analysts, according to the Wall Street Journal.—LB