After Netflix’s disappointment, the spotlight has now turned to Apple, Amazon, and Google: Here are the top earnings to watch

After Netflix's disappointment, the spotlight has now turned to Apple, Amazon, and Google: Here are the top earnings to watch

Tech Highlights:

  • The earnings season has started on a firmer footing. The percentage of S&P 500 companies reporting a positive earnings surprise is above the five-year average, but the magnitude of upside surprise is below the average for the same timeframe, FactSet said in its weekly earnings insight report. It’s still early days to provide any conclusive evidence, given only 20% of the S&P 500 companies have released their quarterly results.

  • As big IT companies set to deliver their quarterly scorecards this week, the focus shifts to earnings. Although geopolitical concerns have placed a cloud over the forecast, Apple and Google parent Alphabet are among the firms likely to report solid earnings. Every month, get 50% off and 2 bear market-beating options trades delivered to your inbox via SMS! Now is the time to get started!

We are moving into that part of the reporting season, when tech earnings pick up their pace, taking over the baton from financial companies. Last week, Netflix, Inc. reported a revenue miss amid a loss of net paid adds. Investors promptly punished the stock, particularly because the management’s revival package suggested a long-drawn-out recovery. FREE EXCLUSIVE MASTERCLASS: How to Trade Options on a Budget for Quick and HUGE Wins Click Here Now to Register! (Limited Seating Event)

Analysts, on average, estimate, EPS of $2.18 for the fiscal-year third quarter, up from $2.03 a year ago. Revenue is expected at $49.03 billion, compared to $41.7 billion in the year-ago quarter. Piper Sandler analyst Brent Bracelin expects the company’s cloud mix to increase to 48% of the total revenue and a positive bias to Office 365. The analyst, however, warned that there is “little margin for error,” given the guidance for a sequential improvement in Azure and expectations for moderation in commercial bookings growth.

The Google parent is expected to report earnings per share (EPS) of $26.11 and revenues of $68.04 billion, according to BenzingaPro data. This compares to the year-ago numbers of $26.29 and $55.31 billion, respectively. “By virtue of advantaged positioning for new ad privacy restrictions, leadership in viral video and emerging success in cloud services, no company is better positioned to leverage what is working online right now, and avoid what isn’t,” Rosenblatt Securities analyst Barton Crockett said in a recent report.

The consensus expectations for the first quarter call for EPS of $2.56 per share and revenue of $28.23 billion. Meta’s top- and bottom-line were at $2.56 per share and $23.67 billion a year ago. Meta is coming off a disappointing quarter, as it missed expectations on many metrics in the fourth quarter. The company suggested on the previous quarter’s earnings call that Apple, Inc.’s . Analysts, on average, expect Twitter to report first-quarter EPS of 3 cents, down from 16 cents in the year ago quarter. Revenues are estimated to have climbed 19.20% year-over-year to $1.22 billion.

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