Big Tech Stocks in Spotlight as Q2 Earnings Season Peaks

Peak earnings season for Q2 begins this week, with 75% of S&P 500 companies scheduled to report. So far, 34% of companies have reported, with 7 stocks diverging from the rest. Big tech companies are under the spotlight as they face growing pressure from investors and regulators. The Magnificent 7, which includes Apple, Microsoft, Alphabet, Amazon, Facebook, Tesla, and Nvidia, are expected to report their earnings this week.

Title: Peak Earnings Season for Q2 Begins: Key Insights and Big Tech Spotlight

Peak earnings season for the second quarter (Q2) is in full swing, with 75% of S&P 500 companies scheduled to report. So far, 34% of companies have released their earnings, with 7 stocks diverging from the norm. Big tech companies, particularly the Magnificent 7—Apple, Microsoft, Alphabet, Amazon, Facebook, Tesla, and Nvidia—are under intense scrutiny as they face growing pressure from investors and regulators.

Key Earnings Highlights

# Microsoft and Apple
Microsoft (MSFT) and Apple (AAPL) are set to report their earnings on Wednesday, July 29. Analysts expect Microsoft to report a 5.6% increase in earnings per share (EPS), while Apple is expected to show a 4.8% increase in EPS. Both companies have been navigating challenges in their respective sectors, with Microsoft facing competitive pressures in cloud computing and Apple dealing with supply chain issues.

# Alphabet and Amazon
Alphabet (GOOGL) and Amazon (AMZN) will report their earnings on Thursday, July 30. Alphabet has seen strong growth in its advertising and cloud services, which is expected to drive its earnings. Amazon, on the other hand, faces increasing competition and pressure to manage its logistics costs. Analysts expect Amazon to report a 10% increase in EPS, driven by its e-commerce and cloud services segments.

# Tesla and Nvidia
Tesla (TSLA) and Nvidia (NVDA) are the final two Magnificent 7 companies to report, with earnings scheduled for August 27. Tesla has been facing declining demand for its electric vehicles (EVs) and competition from Chinese EV makers. Nvidia, however, has been performing well, with strong growth in its data center and gaming segments. Analysts expect Nvidia to report a 20% increase in EPS.

Diverging Earnings Dates

Four companies within the S&P 500 have delayed their earnings dates, with Teradyne Inc, PPG Industries, UnitedHealth Group, and Kimberly-Clark Corp confirming outlier earnings dates for this week. This is often a sign of potential negative news, as companies typically move their earnings dates earlier to signal positive news.

Outlook

The peak weeks of the Q2 earnings season are expected to fall between July 28 and August 15, with each week seeing over 2,000 reports. August 7 is predicted to be the most active day, with 1,291 companies anticipated to report. So far, 71% of companies have confirmed their earnings dates, and 14% have reported.

Conclusion

The Q2 earnings season is shaping up to be a critical period for investors, with a focus on big tech companies and the broader S&P 500. The divergence in earnings dates and the performance of key tech stocks will provide valuable insights into the health of the U.S. economy and the sectors driving growth.

References
[1] https://www.aol.com/earn-500-month-merck-stock-141223951.html
[2] https://finance.yahoo.com/news/live/earnings-live-microsoft-apple-amazon-highlight-parade-of-q2-results-this-week-114303064.html
[3] https://seekingalpha.com/article/4805208-magnificent-7-diverge-peak-earnings-season-big-tech
[4] https://www.interactivebrokers.com/campus/traders-insight/securities/stocks/magnificent-7-diverge-as-peak-earnings-season-puts-spotlight-on-big-tech/