The coming week will be the most important to this quarter’s earnings season – even if the later weeks are quantified, topping this list will be nearly impossible in terms of dollars and attention.
That’s because all big tech will be reporting , and these five companies – Google parent company Alphabet Inc. GEL, + 3.58% G OOG, + 3.37% , E-Commerce and Cloud – Computing Powerhouse Amazon.com Inc. AMZN, + 0.51% , iPhone manufacturer Apple Inc. AAPL, + 1.20% , social media titan Facebook Inc. FB, + 5.30% and software giant Microsoft Corp. MSFT, + 1 , 23% – can determine the market trend at this point in history.
Take a look at these statistics from the Dow Jones Market Data Group:
The five big tech companies made more than a fifth of the total market capitalization of the S&P 500 index SPX, + 1.01% at the end of the second Qu artals, 22%. In the first quarter, they provided nearly 10% of total sales for the 500-member index and nearly 18% of total profits (9.7% and 17.8%, respectively). The percentage of profits earned by Big Tech has actually decreased from 2020, when the five companies delivered nearly a quarter of the index’s total annual profits, 23.8%, and 9.1. made up% of total sales.
In the coming week, the five companies are expected to announce high profits and sales for the second quarter, usually before school starts and the Christmas shopping in the second half of the year. According to the analyst estimates that FactSet has compiled, they are expected to show combined profits of nearly $ 60 billion on sales of more than $ 310 billion.
These estimates are likely conservative. According to FactSet, 88% of the S&P 500 companies outperformed analysts’ average earnings per share estimates this quarter, and 86% outperformed sales with nearly a quarter of index reporting. Both numbers would set records for the overall surprise percentage, which FactSet traced back to 2008, according to senior earnings analyst John Butters.
Facebook and Google, for example, are widely expected to beat estimates behind their peer online ad sales companies Snap Inc. SNAP, + 23.82% and Twitter Inc. TWTR, + 3, 05% exceeded expectations in their reports last week, which helped Alphabet and Facebook, together with Snap, post stock highs on Friday .
See also: Preview of Facebook earnings and Alphabet-Profit-Preview
Stock movements are unlikely to be determined by the numbers of these companies, especially after Friday’s big rally; Forecasting was more important to investors as they wait to see how long the current boom in corporate earnings will last. And all five companies were cautious with their forward-looking statements during the COVID-19 pandemic.
Apple no longer provided guidance during the pandemic that Block the annual parlor game that attempts to extract facts about the upcoming iPhone release from the company’s financial projections t. Microsoft is expected to close its fiscal year by breaking last year’s records by a healthy amount, there will probably only be an official financial guidance for the coming quarter instead of for the whole year as executives have done in the past.
Full preview of results: What will Apple do about the next one iPhone say at winning time? Perhaps more than usual
Most of the big tech predictions that have been shared ultimately underperformed, which can keep expectations low and result in big beats. Amazon, for example, beat the top end of its revenue forecast by 2.3% in the first quarter, which equates to an additional $ 2.5 billion. And that was actually the most accurate forecast from Amazon in the Big Tech’s $ 1.2 trillion pandemic year after high-end quarterly forecast rose 3.8%, 3.4 % and 9.8% was up from the fourth quarter back.
So expect at least a few big profit increases and lots of questions about what’s next when these reports hit later this week. Apple, Google and Microsoft all expect to report on Tuesday afternoon after the market closes, while Facebook follows on Wednesday afternoon and Amazon closes on Thursday afternoon.
The call for an entry in your calendar Tesla Inc. If Tesla TSLA, – 0.91% CEO Elon Musk speaks, the markets are listening.
The most controversial CEO in Silicon Valley has sent cryptocurrencies like Bitcoin BTCUSD, + 6.42% and Dogecoin DOGEUSD, + 4.73% on crazy rides with his tweets and announcements this year, but if he starts the week after work s late Monday afternoon it should the focus is on Tesla and its stock.
As always, there is a lot to talk about with the electric car manufacturer. After a long-standing executive retires, Tesla’s semi-roadmap advances and the gross margin effects of ongoing semiconductor shortages, a problem across the automotive industry, need to be addressed.
Full Tesla earnings preview: Focus on semitrailer trucks, cybertruck pickups and lack of chips
Tesla will probably also it plans to sell its advanced driver assistance functions as a subscription package , even as Consumer Reports participates in one Criticism of Tesla’s approach to autonomous driving . Musk’s recent announcement that Superchargers are opened for electric vehicles from other manufacturers and Demand in the midst of hot competition in China will also be topics to be looked for must become.
Also look out for comments from other, more reputable automakers like Ford Motor Co. F, – 0.65% on Wednesday and the chip supplier Qualcomm Corp. QCOM, +1.71% .
Hasbro Inc. and Mattel Inc. Could it be a more disturbing phrase than “toy shortage” before the holiday season?
Well, Analysts sounded the alarm last week that this is exactly what we might face after parents bought bundles of out-of-season toys to keep their children at home from school during the COVID-19 pandemic, affecting the industry’s supply chain. Expect executives to address any issues in Santa’s workshop when Hasbro HAS, – 0.89% reported on Monday and Mattel MAT, – 1.60% follows on Tuesday .
The numbers to look at The bottom line from Boeing. Boeing BA, + 0.29% Chipotle Mexican Grill Inc. CMG, + 1.81% and Domino’s Pizza Inc. DPZ, – 2.48% , Burger makers and other casual dining chains will detail whether your Pandemic boom continued as certain areas of the US opened up. This week’s program is McDonald’s Corp. MCD, + 1.80% , Shake Shack Inc. SHAK, + 0.63% , Yum Brands Inc. YUM, + 2.10% (and Yum china Holdings Inc. YUMC, + 0.65% ) and Wingstop Inc. WING, + 1.20% . Also watch out for signs of change in chain restaurants that depend more on internal traffic, but are on more take-away during the pandemic oriented, such as Cheesecake Factory Inc. CAKE, – 0.31% and Bloomin ‘Brands Inc. BLMN, + 0.55% . Win this week
Exactly a third of the 30 Dow Jones Industrial Average DJIA, + 0.68%
components and more than a third of the S&P 500 components, up to 180, are expected to post gains in the coming week, according to FactSet. Notable reports from outside the major indices include the Canadian E- Commerce platform Shopify Inc. SHOP, + 3.09% and streaming music service Spotify Inc. SPOT, – 0.22% report Wednesday morning, which will lead to confusion between the two similarly named companies, as well as the growth of Silico n Valley software maker Twilio Inc. TWLO, + 1.07% on Thursday afternoon.
Reports from Dow Jones Industrial Average: 3M Co. MMM, + 0.71% , Apple, Microsoft and Visa Inc. V, + 2.00% MRK, + 1.32% (Thursday); Caterpillar Inc. CAT, + 0.18% , Chevron Corp. CVX, + 0.04% and Proctor & Gamble Co. PG, + 1.44% (Friday)
I love history