This is a big week for the technology sector and stock markets. Five of the seven ‘Magnificent 7’ stocks will post third-quarter earnings. Last week, Tesla (TSLA) posted weak electric vehicle sales. However, TSLA stock hardly sold off. This suggests that the Magnificent 5 have a good chance of rallying if they post strong results.
On Wednesday, Meta Platforms (META) will post results after the market closes. Expect advertising revenue to exceed expectations. However, capital expenditures on artificial intelligence hardware will put pressure on its profits. Although it is not meaningful to results, Meta’s headset is a bright spot.
Alphabet (GOOG) should post strong advertising and cloud revenue growth. But at a fresh high ahead of results, GOOG stock might not jump higher unless it surpasses estimates. Ironically, Alphabet might announce an increase in AI-related chip spending. This raises its costs but helps it compete with Microsoft (MSFT) and OpenAI.
In Microsoft’s Q3 report, expect subscription revenue from Office and Azure cloud services to beat expectations. Xbox and entertainment-related revenue might weaken in the quarter. The firm faces competition from Sony’s (SONY) PlayStation.
On Thursday, Amazon (AMZN) will report results. Its cloud services, AWS, should impress shareholders. Apple (AAPL) might report strong iPhone 17 Pro unit sales. Although it's new, the Air product will face weak demand, and that bad news would not hurt AAPL stock.
