This week is crucial for the stock market as big techs will release earnings. Market and individual stocks tend to become more volatile during earnings season.
How should retail investor read earnings? Professionals generally look at the key points of earnings. Let's find out the key points of their earnings!
1. Has $Meta Platforms, Inc.(META)$ bottomed out?
$Meta Platforms, Inc.(META)$ will release its earnings report after the bell on Feb. 1. Investors should focus on its ad business.
Wall Street analysts expect Q4 revenue of $31.63 billion and Q4 adjusted earnings per share of $2.21.
Market is starting to discuss that Meta has bottomed out, and Jefferies equity analysts led by Brent Thill believe Meta will be the best-performing large-cap company, driven by expense reductions and new drivers. (Reels and other ad businesses)
Jefferies's target price on Meta is $155.
2. $Alphabet(GOOG)$ - Ad business may show weakness
Google will release its earnings report on February 2 after the bell. Investors should focus on its ad business.
According to Bloomberg, the analyst consensus expects Google to report revenue of $64.518 billion and the consensus estimate for EPS is $1.312.
Most of Google's revenue comes from its Google Ads service, and the market generally expects the business to reach $61.56 billion in the fourth quarter, implying a $7 billion ringgit increase in revenue for the business.
Jefferies analyst Brent Thill said Google's advertising business is expected to show some weakness, but will remain a key driver of the company's valuation.
data from bloomberg
3. Apple - iPhone may see first revenue decline in a decade?
Apple will announce its fy 2023 first-quarter results after the bell on Feb. 2. Investors should focus on iPhone's revenue.
According to Refinitiv's data, Wall Street analysts generally expect Apple's revenue last quarter to be $121.19 billion; earnings per share are expected to be $1.94,
The market is concerned that iPhone revenue will decline due to weak consumption and supply chain issues.
The holiday shopping season is a prime sales period for Apple. Yet in last holiday season, Apple may not have achieved sales growth for the first time since 2000.
4. $Amazon.com(AMZN)$ - How to expect Amazon Cloud businees from Microsoft's Azure?
Amazon will report its fourth-quarter 2022 earnings on Feb. 2 after the bell. Investors should focus on its cloud business.
Wall Street expects Amazon's Q4 revenue to be $145.37 billion, compared with $137.41 billion in the same period a year ago; earnings per share are expected to be $0.17, compared with $1.39 per share in the same period a year ago.
Amazon's slowing profit growth is one of the main reasons for the stock's poor performance over the past year. Similar to $Microsoft(MSFT)$ , investors need to focus on Amazon's cloud business. Analysts expect Amazon's cloud computing business, AWS, to achieve nearly 30 percent revenue growth.
In reference,
$Microsoft(MSFT)$ has released its earnings report last week. Azure cloud computing services revenue growth rate increased by about 31%, slightly higher than market expectations, but less than the 46% in the second quarter of last year.
MSFT dropped after the earnings call
Do you get what to look at these companies's earnings?
How do you expect big tech's earnings?
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