All bigtechs will report this week.. Here's what to look out for

На этой неделе отчитаются все бигтехи. Вот на что стоит обратить внимание

Microsoft CorporationMSFT$271.84Buy

На этой неделе отчитаются все бигтехи. Вот на что стоит обратить внимание

Alphabet Class AGOOGL2379.81 $Buy

На этой неделе отчитаются все бигтехи. Вот на что стоит обратить внимание

AppleAAPL$160.42Buy

На этой неделе отчитаются все бигтехи. Вот на что стоит обратить внимание

Amazon.comAMZN2874.00 $Buy

На этой неделе отчитаются все бигтехи. Вот на что стоит обратить внимание

NetflixNFLX$213.50BuyService in partnership with Tinkoff Investments. Quotes are updated every 15 minutes

With 25 on 29 About 160 companies from S will report on April&P 500, that is, every third. Tech giants are among them., the results of which can set the movement in the entire stock market.

Microsoft (MSFT)

Key metric in Microsoft reporting is Azure Cloud Business Dynamics. This is the main driver of the company's revenue growth, which for several quarters added 50% in year. Last time, Azure sales grew by 46%. If the results of this unit turn out to be worse than expected, MSFT shares may noticeably sink.

Report Date: 26 April, postmarket.

Experts' forecast: revenue — 49 billion dollars (+18%), EPS — 2,2 $ (+12%).

Last quarter: revenue — 51.7 billion dollars (+20%), EPS — 2,5 $ (+22%).

Alphabet (GOOGL)

Advertising revenue is the main source of revenue Google. While the company is able to increase sales in this segment at a high pace: Last quarter, advertising revenue grew by 33%. But with product shortages and rising logistics and staffing costs, advertisers may be cutting costs..

Report Date: 26 April, postmarket.

Experts' forecast: revenue — 68.1 billion dollars (+23%), EPS — 25,9 $ (−2%).

Last quarter: revenue — 75.3 billion dollars (+32%), EPS — 30,7 $ (+38%).

Meta Platforms (FB)*

Analysts expect, that Meta* will again report weak results. Last time, 2 February, the company reported a drop in profits, and its shares have since fallen in price by 43%. Meta* itself considers, that its revenue this quarter will grow weakly - by about 7%. The reasons: competition, Apple's privacy policy and low advertiser costs.

Report Date: 27 April, postmarket.

Experts' forecast: revenue — 28.3 billion dollars (+8%), EPS — 2,6 $ (−22%).

Last quarter: revenue — 33.7 billion dollars (+20%), EPS — 3,7 $ (−5%).

Apple (AAPL)

Factory failures and chip shortages are Apple's biggest problems lately. Last quarter, the company said, that the supply situation has improved. Later in China there was an outbreak of COVID-19, and Apple cut the release of some gadgets and accessories.

  Interview: Jim Rogers

Report Date: 28 April, postmarket.

Experts' forecast: revenue — 94.1 billion dollars (+5%), EPS — 1,4 $ (−2%).

Last quarter: revenue — 123.9 billion dollars (+11%), EPS — 2,1 $ (+25%).

Amazon (AMZN)

Over the past three quarters, Amazon's revenue is worse than expected, as shoppers return to physical stores. At the same time, the company's operating profit is falling due to high logistics and labor costs.. It has halved in the last quarter.. But the "paper" net profit doubled, because Amazon successfully invested in shares of automaker Rivian. This time, the company will have to rely only on the results of its own business..

Report Date: 28 April, postmarket.

Experts' forecast: revenue — 116.5 billion dollars (+7%), EPS — 8,4 $ (−47%).

Last quarter: revenue — 137.4 billion dollars (+9%), EPS — 27,7 $ (+97%).

Why it matters

In recent years, the yield S&The P 500 is defined by large technology companies with a high weight in the index. Until recently, their shares - MSFT, GOOGL, FB*, AAPL, AMZN and NFLX grew well and pulled the entire index.

According to analyst firm Bespoke Investment, in three of the last eight years, this group's contribution to market growth has been greater, than all the others combined.

But things have changed in 2022.. Tech stocks fall amid tightening policy FED and slow down the whole market. From the beginning of the year to 21 April S&P 500 fell by 8%. Bespoke calculated, that half of this fall came from the six bigtechs.

A negative report by any of the tech giants could further exacerbate the fall in S&P 500, while positive reporting can support the market. It is for this reason that investors and analysts will closely monitor the financial results of these companies..

Weight in S&P 500 and stock returns since early 2022

The weight Yield
Apple (AAPL) 6,9% −8,9%
Microsoft (MSFT) 5,7% −18,5%
Amazon (AMZN) 3,5% −13,4%
Alphabet Class A (GOOGL) 2,0% −17,4%
Alphabet Class C (GOOG) 1,9% −17,3%
Meta Platforms (FB)* 1,2% −45,3%
Netflix (NFLX) 0,3% −64,2%

News, which concern investors, - in our telegram channel. Subscribe, to keep abreast of what's happening: @investnique.

Scroll up