Investing in the Magnificent Seven: What to Expect When Apple, Microsoft, Alphabet, Nvidia, Tesla, Meta Platforms, and Amazon Report Earnings
As earnings season heats up, all eyes are on the Magnificent Seven group of mega-cap tech companies. These powerhouse names, including Apple, Microsoft, Alphabet, Nvidia, Tesla, Meta Platforms, and Amazon, have been leading the charge in the recent bull market rally. Investors are eager to see how these companies perform in their quarterly reports.
The Roundhill Magnificent Seven ETF, which aims to mimic the performance of these companies, has seen significant gains this year, outperforming the S&P 500. However, recent market pressures have raised questions about the sustainability of their growth. The CNBC Magnificent 7 Index has dipped, prompting analysts to evaluate the future outlook of these tech giants.
Let’s take a closer look at what analysts are expecting from each of the Magnificent Seven companies as they prepare to reveal their quarterly results:
Microsoft: Despite a 3.7% decline in stock performance last quarter, Microsoft has a strong track record of beating earnings expectations. Analysts remain bullish on the stock, citing factors such as increased capacity post-Nvidia’s Blackwell release and market certainty on rates and the U.S. election.
Apple: With an 89% EPS beat rate, Apple enjoyed a successful third quarter. While there are concerns about sluggish demand in the Chinese smartphone market, recent government stimulus measures in China are expected to support growth. Analysts predict a 4.6% increase in share price over the next year.
Nvidia: Despite a slight decline in stock performance last quarter, Nvidia has had a stellar year overall. The stock is up almost 167% in 2024, with an 85% EPS beat rate. Analysts are optimistic about the company’s growth potential, citing strong demand for AI chips.
Tesla: Tesla faces a high bar ahead of earnings, with shares falling nearly 16% this quarter. Competing in a crowded EV market, Tesla is looking to maintain its market position. Analysts are divided on the stock, with some predicting a slight decrease in share price in the coming year.
Alphabet: Alphabet’s performance in the third quarter was lackluster, with an 8.8% decline in stock price. Despite regulatory challenges, analysts remain positive about the company’s future earnings potential. A 22.5% upside is projected for Alphabet shares.
Amazon: Amazon faced challenges in the last quarter, leading to a 3.6% decline in stock price. However, analysts are optimistic about the company’s long-term growth trajectory. Amazon’s diverse revenue streams, including AWS and e-commerce, continue to drive investor confidence.
Meta Platforms: With a dazzling 64% increase in stock price this year, Meta Platforms has been a standout performer. Analysts are optimistic about the company’s online advertising business and advancements in AR and VR technology. A 2.3% upside is forecast for Meta shares.
In conclusion, the Magnificent Seven companies are set to reveal their quarterly results, and investors are eager to see how these tech giants perform. Stay tuned for updates on their earnings reports and future outlook. Join our network at Extreme Investor for exclusive insights and analysis on these market movers and more.