What to Expect from Apple and Microsoft
Strong earnings from these giants are viewed as essential to reversing recent underperformance, as both stocks have lagged the S&P 500 over the past year.
Apple: Forecast to post $2.65 EPS on $137.5B to $138.4B in revenue. Investors are focused on iPhone 17 momentum and "Apple Intelligence" adoption to justify its premium valuation.
Microsoft: Expected to deliver $3.88 EPS on $80.2B in revenue. The primary driver will be Azure and AI growth, specifically how the OpenAI partnership and Copilot are translating into measurable returns.
Meta's Path to Regaining Confidence
After an 11% post-earnings selloff in late 2024, Meta needs to balance strong growth with controlled spending to regain investor trust.
Earnings Targets: Analysts expect $8.16–$8.21 EPS on $58.3B–$58.4B in revenue.
Scrutiny on Spending: While ad revenue remains robust, the focus is on Meta's 2026 capital expenditure (Capex) guidance. Management has already warned that 2026 spending will be "notably larger" than 2025's $70B–$72B range.
Investor Sentiment: Meta currently trades at approximately 20x–21x forward earnings, making it the cheapest stock in the group. An upside surprise in AI-driven ad efficiency could trigger a rebound, but another sharp increase in projected infrastructure costs without clear ROI signals may further pressure the stock.
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