Balance Season's Magnificent Seven: What Are the Profit Predictions?

Incredible Seven Winds in Earnings Season

The busiest week of the earnings season has begun. In the coming days, more than 150 S&P 500 companies will announce their third-quarter results. Among the standout names during this process are five members of the Incredible Seven, which holds an important place in the technology world: Meta, Google (GOOGL), Microsoft (MSFT), Amazon (AMZN), and Apple (AAPL).

Meta's Third Quarter Expectations

Meta Platforms is set to announce its third-quarter results after the market closes today. The company gained 10% in value during the previous quarter due to its strong performance. Wall Street analysts predict that Meta will achieve a 20% revenue growth this quarter. Bernstein analyst Mark Shmulik notably emphasized Meta's success in its advertising products and the user growth in the Threads app.

Alphabet's (GOOGL) Expectations

Alphabet has a history of averaging a 1.3% gain on earnings days. The results expected to be announced at market close are anticipated to "slightly exceed" expectations. According to RBC analysts, investors will look for more evidence of the resilience of search engines in light of the increasing use of ChatGPT.

Microsoft's Growing Revenues

Microsoft generated $75 billion in revenue from its cloud service Azure in the previous quarter. A double-digit revenue and profit growth is expected in this quarter as well. UBS analyst Karl Keirstead predicts that Azure will record a 39% growth and maintains a "BUY" rating on the stock.

Amazon's Mixed Picture

Amazon sometimes presents a mixed picture during earnings periods. However, analysts expect the company's profit to increase by 10% this quarter. Bank of America analyst Justin Post forecasts that Amazon Web Services revenues will grow by 17% year-over-year.

Apple's Artificial Intelligence and New Products

For investors monitoring Apple's third-quarter results, the company is an important agenda item. It has released positive reports on the strong sales of the new iPhone launched in September. According to LSEG data, analysts expect Apple's revenue and profit to grow by 7% compared to the previous year.

Conclusion

The direction of the earnings season presents significant opportunities for investors. The third-quarter results of prominent names such as Meta, Google, Microsoft, Amazon, and Apple will show their impact on the market.