{"id":7491,"date":"2022-07-22T17:46:58","date_gmt":"2022-07-22T09:46:58","guid":{"rendered":"https:\/\/www.syfe.com\/magazine\/?p=7491"},"modified":"2024-04-02T14:36:24","modified_gmt":"2024-04-02T06:36:24","slug":"july-25-to-29-big-tech-earnings-to-watch","status":"publish","type":"post","link":"https:\/\/www.syfe.com\/magazine\/july-25-to-29-big-tech-earnings-to-watch\/","title":{"rendered":"July 25 to 29 | Big Tech Earnings To Watch"},"content":{"rendered":"\n
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Earnings season is once again upon us! This is a time when publicly traded companies reveal how they\u2019ve fared in the previous quarter (in the form of earnings per share and revenue figures) and provide forward guidance for the months ahead.<\/p>\n\n\n\n

Following one of the worst first-half performances for the US stock market, Q2 2022 earnings will shed light on how companies are coping with various headwinds like surging inflation, rising interest rates, supply chain woes and geopolitical uncertainty. This can help investors determine the outlook for a stock.<\/p>\n\n\n\n

When is earnings season?<\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n

Earnings season happens four times a year, usually in January, April, July and October. Most companies release their earnings reports outside of market hours so they don\u2019t interrupt the trading day. <\/p>\n\n\n\n

That said, investors can still trade earnings (i.e. buy or sell stocks based on their financial results) using their brokerage\u2019s extended hours trading feature<\/a>. <\/p>\n\n\n\n

Earnings and stock prices<\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n

A company\u2019s stock price may rise or fall depending on the earnings released. If earnings come in above analysts\u2019 estimates, or the company performs better than expected, the stock could jump. For instance, Netflix shares jumped nearly 7% in after-hours trading after the company reported fewer subscriber losses than expected<\/a> in the second quarter.<\/p>\n\n\n\n

If earnings fall below analysts\u2019 expectations however, the stock could drop. An example is how Snap plunged 23% in after hours trading on Thursday after missing revenue estimates for the second quarter.<\/p>\n\n\n\n

Sometimes, the stock could move in opposite directions to their company earnings, so it\u2019s not always a given that a stock will fall on negative earnings. A stock could also remain flat if earnings are in line with analysts\u2019 expectations.<\/p>\n\n\n\n

Earnings to watch <\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n

Next week, major tech companies such as Amazon, Apple, Alphabet, Microsoft and Meta will report earnings. Tech and growth stocks have tumbled this year on the prospect of higher interest rates as central banks worldwide tighten monetary policies to tame inflation. <\/p>\n\n\n\n

Here are some Big Tech earnings to watch.<\/p>\n\n\n\n

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Alphabet earnings (Tuesday)<\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n

Google’s parent company will release its second quarter results on Tuesday, 26 July. Analysts expect earnings per share of $1.31 (down 3% year-over-year), and revenue is estimated at $70 billion (up 14% year-over-year).

Alphabet\u2019s 20-for-1 stock split<\/a> officially took effect on Monday. For Alphabet shareholders, you now get to own 20 shares for each share you previously owned. For potential investors, the stock split makes Alphabet more accessible since the share price has dropped to an affordable $114 compared to over $2,000 before the split. Be that as it may, Alphabet\u2019s market capitalisation remains unchanged at around $1.5 trillion, making it one of the most valuable firms in the world.<\/p>\n\n\n\n

Microsoft earnings (Tuesday)<\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n

Microsoft has managed to grow earnings per share by 29% per year over the past three years. While that\u2019s impressive, it\u2019s also worth noting that Microsoft turned in the smallest revenue beat since 2018 in the previous quarter.<\/p>\n\n\n\n

The company will be releasing its Q2 earnings on Tuesday, 26 July. Analysts estimate earnings per share of $2.30, a drop of 6% year-over-year, and revenue of $52 billion, a 14% increase from a year ago. <\/p>\n\n\n\n

Recently, Microsoft signed a partnership with Netflix to support the streaming giant\u2019s upcoming ad-supported subscription plan by providing its technology and sales expertise. Despite having a relatively small presence in the ad-tech space, Microsoft is looking to ramp up its online ad business. The company acquired ad-tech firm Xandr for $1 billion last year to complement its existing data-driven ad solutions.<\/p>\n\n\n\n

Meta earnings (Wednesday)<\/strong><\/strong><\/strong><\/h2>\n\n\n\n

For the second quarter, analysts forecast Meta\u2019s earnings per share to come in at $2.61 (down 28% year-over-year) and revenue to reach $29 billion (growth of 4% year-over-year). The Facebook parent will release its quarterly results on Wednesday, 27 July. <\/p>\n\n\n\n

Meta\u2019s earnings should provide insight into several areas:<\/p>\n\n\n\n