Alphabet, Microsoft and Amazon headline a week in which around 160 S & P 500 companies report quarterly results. Investors are looking for clues on how companies are financing the artificial intelligence boom, after AI spending concerns triggered a Thursday sell-off.
Around 160 S & P 500 companies will report quarterly results this week, including Alphabet, Microsoft and Amazon. The reports land after worries about AI spending sparked a sell-off that gave the Nasdaq Composite its worst session since June.
Results so far have been strong. As of Friday, more than 120 S & P 500 companies had reported, and about 83% beat the Street's expectations for earnings, according to FactSet.
Alphabet reports Wednesday after the bell
Alphabet is slated to report after the bell on Wednesday. Last quarter, its revenue topped expectations, but the stock sank after the company said it was hiking its capex forecast for the year.
This quarter, analysts expect about 25% growth in revenue from last year, according to LSEG data. Historically, Alphabet shares have gained nearly 1.3% on average after earnings reports, according to Bespoke.
Microsoft expected to post double-digit growth
Microsoft follows after the close on Wednesday. LSEG data shows analysts forecast 14.3% growth in earnings and 16.8% growth in revenue year-over-year.
Last quarter, Microsoft shares rose after the software giant reported 18% revenue growth and a $3.2 billion gain from an investment in Anthropic. Bespoke data shows Microsoft has posted a double beat every quarter since April 2023.
Amazon closes out the tech trio
Amazon is scheduled to report after the bell later in the week. Its earnings per share are expected to remain relatively flat alongside double-digit yearly growth in revenue, according to LSEG data.
Jefferies has a positive take on the stock, calling it an alternative to Alphabet and Walmart. Bespoke data shows Amazon's top- and bottom-line results beat expectations 72% of the time and 66% of the time, respectively.
Boeing, Coca-Cola, Eli Lilly and Intel also report this week during earnings season.
Source: CNBC
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