Big tech earnings in focus in Wall Street this week
There’s going to be quite a lot for markets to digest in the week ahead. US-Iran developments are already making waves to start the new week but keep in mind that there will also be major central bank decisions and month-end trading to deal with. Adding to the mix in the days to come will be big tech earnings in the US.
After the setback from Alphabet (Google) last week, it’s free game now even though US futures may be pointing up to start the week.
The big question posed by the market reaction last week was not if AI can translate to revenue. We already know that for sure and the hyperscalers have proven that. It is now a question of if the revenue from AI can be enough to cover the continued massive capital expenditure outlay.
In the case of Google last week, it was more of an issue that the company reported its first ever negative free cash flow on a quarter since going public. That as it continues to ramp up AI expenditure for the quarters to come. For investors, the question is where do we draw the line on how much is too much before needing to see the profit numbers justify the insane amounts spent on chips and data centers.
So, that will again come into focus when viewing the big tech earnings this week – where four of the ‘Magnificent Seven’ will report. Here are some of the big names to watch out for this week:
- 27 July: AstraZeneca
- 28 July: Boeing, Visa, Coca-Cola
- 29 July: Microsoft, Meta, Arm Holdings, Qualcomm
- 30 July: Amazon, Apple, Mastercard, Shell
- 31 July: ExxonMobil, Chevron
As a reminder, Nvidia will only report in late August so this week will pretty much be key in deciding the fate of big tech after back-to-back weekly drops in the Nasdaq. The drop on Friday brought the index down to 24,975 in testing the June lows, which will be a key focus point this week despite the early bounce today.
