Magnificent Seven earnings season is here again, with five of the tech megacap companies reporting this week.
The Magnificent Seven comprises seven big tech stocks – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. All of these are among the largest companies in the world by market cap. Nvidia (NASDAQ:NVDA) became the world’s first $5 trillion company on 29 October.
That same day sees three of Nvidia’s Magnificent Seven colleagues report their earnings for the latest quarter.
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“The earnings spotlight will be blinding,” said Jay Woods, chief market strategist at Freedom Capital Markets. “Five of the Magnificent Seven — Apple, Amazon, Microsoft, Meta, and Alphabet — all report within days of each other, meaning every call could reset sentiment across tech and the broader indices.”
Alphabet
Alphabet (NASDAQ:GOOGL) announces its results after US markets close on 29 October.
Analysts polled by LSEG expect the Google parent company to post revenue of $99.9 billion and earnings per share (EPS) of $2.34.
Over the 3 months to 28 October, Alphabet has been the best-performing Magnificent Seven stock, with shares buoyed by a judge ruling against a proposed break-up of Google in a monopoly case investigating its Search business.
“Rumours swirl about a potential major investment or complete takeover of AI company Anthropic,” said Woods. “Alphabet is currently the best performing stock of the Mag 7 and heads into Wednesday’s announcement with a head of steam.”
Amazon
Amazon (NASDAQ:AMZN) made headlines this week for appearing to continue the tech layoff trend, announcing that it would cut 14,000 corporate jobs on 28 October. Its cloud division, AWS, was also at the heart of an outage that brought much of the internet to a standstill last week.
“Recent concerns over [the] AWS outage may be the focus on the earnings call,” said Woods.
AWS is Amazon’s best hope of catching major artificial intelligence (AI) tailwinds, so investors will watch the division’s growth this quarter with a keen eye on whether or not it keeps pace with smaller competitors Microsoft Azure and Google Cloud.
Overall, analysts expect Amazon to post EPS of $1.57 on revenue of $177.8 billion when it announces its results after US markets close on 30 October.
Apple
Apple (NASDAQ:AAPL) will also announce its results after markets close on 30 October.
“Apple's ecosystem, its brand and its large installed base remains a competitive advantage,” said Wamsi Mohan, research analyst at Bank of America Securities. Mohan added that he believes AI could on the one hand be a tailwind for Apple by enhancing its existing products (through AI-augmented wearables, or smart home and robotics products), but on the other hand could disrupt traditional revenue streams such as search revenues.
Analysts polled by LSEG expect EPS of $1.77 on revenue of $102.2 billion.
Meta
Meta (NASDAQ:META) announces its results after US markets close on 29 October.
“After posting a solid quarter last period where shares jumped by just over 13% things have settled down,” said Woods. Meta’s shares are up around 28% year to date, but have gained just 3.6% over the three months to 28 October.
Analysts polled by LSEG expect EPS of $6.69 on revenue of $49.4 billion.
Microsoft
Microsoft (NASDAQ:MSFT) stock popped after its last earnings release but has failed to regain those heights since.
“Shares jumped by 8.2% on the opening after a positive reaction to great numbers from their Azure cloud division,” said Woods of Microsoft shares after its previous earnings release on 30 July. “Sadly that open at $554.40 was the high and is the all-time high shareholders hope to get back to.”
Microsoft announces the most recent quarter’s results on the evening of 29 October and analysts expect EPS of $3.67 on revenue of $75.3 billion.
Nvidia
Nvidia’s results usually follow a month or so after the rest of the Magnificent Seven, and has come to resemble something of a highlight of the tech investment calendar.
Nvidia’s next set of results is scheduled for 19 November, after markets close, and analysts at present expect EPS of $1.24 on revenue of $54.7 billion.
When do the Magnificent Seven announce results?
See the table below for an overview of when the Magnificent Seven companies are announcing results.
Date | Companies announcing results |
|---|---|
22 October | Tesla |
29 October | Alphabet, Meta, Microsoft |
30 October | Amazon, Apple |
19 November | Nvidia |
Source: Nasdaq. All earnings announced after US markets close.
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