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3 "Magnificent 7" Stock Earnings Coming Up: What to Expect
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Amid the delayed prospect of rate cuts and an increase in geopolitical tension, the technology sector has been seeing brutal trading in recent weeks after a strong first quarter. Notably, the Magnificent Seven stocks suffered the worst-ever weekly loss in terms of market capitalization, erasing $950 billion last week.
NVIDIA (NVDA - Free Report) , which has been leading the artificial intelligence boom, shed almost $300 billion and became the biggest market-cap loser. Shares of NVIDIA fell 13.6% last week and are down about 22% from its March high, indicating that it is in bear market territory. Meanwhile, Tesla (TSLA - Free Report) witnessed the biggest decline percentage among the Magnificent Seven as its market cap fell by $76 billion.
Apple and Microsoft (MSFT - Free Report) lost $178 billion and $169 billion, respectively, in market cap. Amazon shed $118 billion in market value while Meta Platforms (META - Free Report) and Alphabet (GOOGL - Free Report) erased a respective $68 billion and $41 billion from their valuation.
However, first-quarter earnings are expected to drive the whole group higher. First-quarter earnings for Magnificent Seven are expected to grow 33% from the same period last year on 12.7% higher revenues. This would follow the 51.2% earnings growth for the group in the fourth quarter on 15% higher revenues.
Profits for the Magnificent Seven are expected to rise 38% in the first quarter from a year ago, dwarfing the overall S&P 500's 2.4% year-over-year earnings growth, according to Bloomberg Intelligence data.
Here, we discuss three companies from the Magnificent Seven — Meta Platforms, Microsoft and Alphabet — that are set to release earnings this week. Meta Platforms will report on Apr 24, while Microsoft and Alphabet are expected to release their results on Apr 25.
Meta Platforms
Meta Platforms has an Earnings ESP of +0.62% and Zacks Rank #2 (Buy). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The social media giant saw a positive earnings estimate revision of a penny for the to-be-reported quarter over the past 30 days. Analysts increasing estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. The current Zacks Consensus Estimate for the yet-to-be-reported quarter indicates substantial year-over-year earnings growth of 63.6%. Revenues are expected to increase 26.6%. Meta Platforms delivered an earnings surprise of 19.71%, on average, in the last four quarters. The stock belongs to a top-ranked Zacks industry (top 22%). Shares of META have surged about 22% over the past three months.
Microsoft
Microsoft has an Earnings ESP of -3.36% and a Zacks Rank #3. Microsoft saw a negative earnings estimate revision of 3 cents over the past 30 days for the to-be-reported quarter. Its earnings track record is impressive, with the four-quarter earnings surprise being 8.82%, on average. The Zacks Consensus Estimate indicates earnings growth of 14.69% and modest revenue growth of 14.7% from the year-ago quarter. Microsoft belongs to a top-ranked Zacks industry (top 34%) and has gained 0.6% over the past three months.
Alphabet
Alphabet has an Earnings ESP of +1.43% and Zacks Rank #3. It saw no earnings estimate revision over the past 30 days for the to-be-reported quarter. The company’s earnings surprise track record over the past four quarters is good, with the average being 7.22%. Earnings are expected to increase 27.4%, while revenues are expected to grow 13.7% from the year-ago quarter. The Internet behemoth falls under a top-ranked Zacks industry (top 18%) and has climbed 5.5% in the past three months.
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3 "Magnificent 7" Stock Earnings Coming Up: What to Expect
Amid the delayed prospect of rate cuts and an increase in geopolitical tension, the technology sector has been seeing brutal trading in recent weeks after a strong first quarter. Notably, the Magnificent Seven stocks suffered the worst-ever weekly loss in terms of market capitalization, erasing $950 billion last week.
NVIDIA (NVDA - Free Report) , which has been leading the artificial intelligence boom, shed almost $300 billion and became the biggest market-cap loser. Shares of NVIDIA fell 13.6% last week and are down about 22% from its March high, indicating that it is in bear market territory. Meanwhile, Tesla (TSLA - Free Report) witnessed the biggest decline percentage among the Magnificent Seven as its market cap fell by $76 billion.
Apple and Microsoft (MSFT - Free Report) lost $178 billion and $169 billion, respectively, in market cap. Amazon shed $118 billion in market value while Meta Platforms (META - Free Report) and Alphabet (GOOGL - Free Report) erased a respective $68 billion and $41 billion from their valuation.
However, first-quarter earnings are expected to drive the whole group higher. First-quarter earnings for Magnificent Seven are expected to grow 33% from the same period last year on 12.7% higher revenues. This would follow the 51.2% earnings growth for the group in the fourth quarter on 15% higher revenues.
Profits for the Magnificent Seven are expected to rise 38% in the first quarter from a year ago, dwarfing the overall S&P 500's 2.4% year-over-year earnings growth, according to Bloomberg Intelligence data.
Here, we discuss three companies from the Magnificent Seven — Meta Platforms, Microsoft and Alphabet — that are set to release earnings this week. Meta Platforms will report on Apr 24, while Microsoft and Alphabet are expected to release their results on Apr 25.
Meta Platforms
Meta Platforms has an Earnings ESP of +0.62% and Zacks Rank #2 (Buy). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The social media giant saw a positive earnings estimate revision of a penny for the to-be-reported quarter over the past 30 days. Analysts increasing estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. The current Zacks Consensus Estimate for the yet-to-be-reported quarter indicates substantial year-over-year earnings growth of 63.6%. Revenues are expected to increase 26.6%. Meta Platforms delivered an earnings surprise of 19.71%, on average, in the last four quarters. The stock belongs to a top-ranked Zacks industry (top 22%). Shares of META have surged about 22% over the past three months.
Microsoft
Microsoft has an Earnings ESP of -3.36% and a Zacks Rank #3. Microsoft saw a negative earnings estimate revision of 3 cents over the past 30 days for the to-be-reported quarter. Its earnings track record is impressive, with the four-quarter earnings surprise being 8.82%, on average. The Zacks Consensus Estimate indicates earnings growth of 14.69% and modest revenue growth of 14.7% from the year-ago quarter. Microsoft belongs to a top-ranked Zacks industry (top 34%) and has gained 0.6% over the past three months.
Alphabet
Alphabet has an Earnings ESP of +1.43% and Zacks Rank #3. It saw no earnings estimate revision over the past 30 days for the to-be-reported quarter. The company’s earnings surprise track record over the past four quarters is good, with the average being 7.22%. Earnings are expected to increase 27.4%, while revenues are expected to grow 13.7% from the year-ago quarter. The Internet behemoth falls under a top-ranked Zacks industry (top 18%) and has climbed 5.5% in the past three months.