5 Top Tech Stock Previews This Week

Five of the "Magnificent Seven" that have contributed significantly to stock market gains over the past year are scheduled to announce their latest financial results this week.

Alphabet

Alphabet will be one of the first to report after the close of trading on Tuesday. Analyst forecasts indicate that earnings growth may moderate slightly to $1.55 per share, an improvement over the prior year but in line with the previous quarter. Revenue is anticipated to rise to $83.7 billion. Investors will be keen to understand if cost optimisation efforts in Google Cloud have reached their maximum potential, as management comments on this topic could influence share price reaction. The stronger-than-expected digital advertising spend late last year provides optimism for a positive Q4 performance.

Microsoft

Microsoft will also announce its results after Tuesday's close. The progress of Microsoft's AI initiatives will be a major focus area. While AI technologies have experienced robust consumer demand, monetisation is now a priority. AI helped boost Microsoft's share price last year, but maintaining earnings growth will be necessary to continue supporting valuation—analyst consensus forecast earnings per share of $2.69 on sales of $58.8 billion.

Amazon

Amazon's earnings after Thursday's close will shed light on the impact of holiday season online retail sales. Analysts anticipate earnings to retreat to $0.15 per share on improved revenues of $164.3 billion. As with Alphabet, investors will scrutinise performance in the cloud computing division, which has underpinned 12% annualised revenue growth over the past several quarters.

Apple

Apple reports later on Thursday, with consensus estimates of $2.15 in earnings per share and $126.1 billion in revenues, benefiting from strong year-end product sales and ongoing services business expansion. However, some analysts have concerns that services revenue growth guidance may be lowered for coming periods, which could disappoint markets.

Meta

Meta, Facebook's parent company, also announces after Thursday's close. While earnings per share are forecast to grow more moderately to $4.10, revenue is anticipated to rise to $36.5 billion due to higher digital advertising spend at 2023's end. The market will be interested in understanding if Meta can sustain previous cost optimisation efforts and the advertising revenue outlook through this year's election cycle.

AMZN 'Flagged' with Bullish Bias

Amazon's share price has been on an upward trend since its early 2023 low at $81.50. Bulls repelled bearish momentum at the higher low of $120, pushing the stock past the peak of $146 amid a flag completion. The measured-move projection (from the peak up) suggests AMZN could hit $173 if bulls can maintain bias above the swing low of $143. Conversely, a local top may be in already, increasing speculation of reverting back to the lower trendline near $135.

Source: SpreadEx / AMAZON.COM

Key Takeaways

Five of the "Magnificent Seven" stocks will announce their latest financial results this week. Alphabet is expected to have slightly moderated earnings growth, but revenue is anticipated to rise. Investors will be attentive to the potential of cost optimisation efforts in Google Cloud. Microsoft's focus will be on their AI initiatives, as maintaining earnings growth is important for their valuation. Amazon's earnings will provide insights into holiday season online retail sales, closely examining their cloud computing division. Apple is expected to benefit from strong year-end product sales and ongoing services business expansion, but concerns about lower service revenue growth guidance exist. Meta's earnings per share are projected to grow moderately, supported by higher digital advertising spend. The market will pay attention to cost optimisation efforts and advertising revenue outlook.