Investors Brace for Crucial Day as Apple, Amazon, Meta Set to Report Latest Earnings
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Investors Brace for Crucial Day as Apple, Amazon, Meta Set to Report Latest Earnings

Thursday marks one of the biggest days of the current earnings season, with Apple, Amazon, and Meta all set to unveil their latest financial results.
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Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Meta Platforms (NASDAQ: META)—three “Magnificent Seven” members—are scheduled to announce their financial results today after the market’s closing bell. Analysts and investors will closely scrutinize the reports, providing fresh insights into current trends in AI, advertising, and cloud computing.

What Will Wall Street Be Looking Out For in Today’s Reports?

Apple’s new earnings report will be unveiled a day before the US launch of Vision Pro, the company’s first major hardware product in years. The company, grappling with a slowdown in smartphone demand and intensified competition in China, its third-largest market. These challenges have led to four consecutive quarters of declining sales for Apple. For the new report, Wall Street anticipates a marginal sales increase to approximately $118 billion, a growth of less than 1% from the previous year, as per FactSet data. Earnings per share (EPS) are anticipated to climb to $2.10 from $1.88 a year earlier. This report is crucial, providing insights into the iPhone’s demand outlook. Investors and analysts will also closely monitor Apple’s guidance, especially regarding the potential impact of its first significant new product in years.

Amazon.com Inc.’s upcoming financial results are set to shed light on its performance during the crucial holiday season and the emerging role of AI in driving cloud computing demand. The company has projected that generative AI could generate billions in revenue over the coming years. Analysts and investors are keenly anticipating updates on the growth of Amazon Web Services (AWS) and the rapidly expanding advertising segment. According to FactSet, expectations are set for an 11% increase in sales to $166 billion for the fourth quarter. EPS is predicted to climb significantly to 80 cents, a substantial rise from just 3 cents per share a year earlier.

Lastly, Facebook owner Meta Platforms is also poised to reveal its latest financial results following today’s closing bell. After a challenging 2022, the company has rebounded, aided by a resurgent advertising market and effective cost-cutting measures. FactSet data indicates that analysts expect a significant revenue surge of over 20% year-over-year, reaching $39.12 billion. EPS is forecasted to soar to $4.82, up markedly from $1.76 a year ago. Beyond the immediate financial, Meta’s commentary on its AI investment program and the performance of Reels, which continues to attract more advertisers, will also be closely scrutinized. The impact of Reels on Meta’s advertising revenue, previously neutral and even negative, is now expected to be positive, reflecting the platform’s evolving monetization strategy.

AAPL, AMZN, META Up in Premarket

Ahead of their pre-earnings trading session, each of the three companies has seen an uptick in premarket trading. Apple was up 0.7% at the time of writing, while Amazon and Meta rose 1.2% and 1%, respectively.

Meanwhile, the S&P 500 futures advanced 0.3%.

The premarket data points to a positive investor sentiment despite indications from the Federal Reserve that the first interest rate cut might be delayed until May rather than occurring in March as initially anticipated. On Wednesday, the Fed maintained the key interest rate and signaled openness to rate reductions, however, a cut in March would likely come too early even with inflation showing signs of steady decline.

Do you think the S&P 500 could attack a new all-time high if today’s tech reports beat expectations? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.