The mantra on Wall Street these days: Keep calm and carry on buying tech.
John Freeman and Ron Westfall discuss Apple (APPL), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), and Microsoft (MSFT) as all Mag 7 giants ready for earnings this week. Both remain wary on Apple, while Ron favors Amazon while John backs Alphabet and Microsoft.
In my view, $15B in Amazon.com, Inc.'s AWS AI services ARR is not enough to justify a $200B FY26 CapEx plan. At least, not yet. I want to see AWS AI services ARR increase significantly over the next few quarters, since it still represents only 10% of AWS's run rate. AWS grew 24% in Q4, and I want to see Q1 revenue coming in clearly above the $36.8B consensus.
GOOGL gears up for Q1'26 earnings as AI Mode and Gemini 3 boost Search engagement and Cloud demand, while valuation looks stretched.
Best known for his commentary on Tesla Inc (NASDAQ:TSLA) stock, Gerber Kawasaki CEO Ross Gerber shared his thoughts on the other Magnificent Seven stocks during a recent exclusive interview with Benzinga. Gerber ranked the Magnificent Seven stocks and shared another of his top technology stock picks.
This week's earnings from Apple Inc (NASDAQ:AAPL, XETRA:APC), Amazon.com Inc (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOG), Microsoft Corp (NASDAQ:MSFT), and Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) are expected to reinforce one core theme: AI is no longer just a future growth story but a driver of real revenue, profits, and valuation for Big Tech. Analysts at Wedbush take the view that investors are still underestimating how quickly these companies are monetizing AI, whether through cloud demand (Microsoft, Amazon, Google), digital advertising (Meta), or upcoming product strategy shifts (Apple).
It's been a great year for memory and data storage stocks. Earnings could make it even better.
META heads into Q1 results with ad revenues seen up 31%, but big AI spending, Reality Labs losses, and margin pressure could weigh on sentiment.
All eyes turn to the Magnificent 7 this week as Alphabet, Meta, Microsoft, Amazon and Apple all report Q1 2026 results. The S&P 500 is projected to deliver its sixth consecutive quarter of double-digit earnings growth at 15.1%, fueled largely by a powerhouse 46% expansion in the Information Technology sector. Potential earnings surprises this week: Chipotle, Vulcan Materials, Xylem and more.
Retail investors aren't trading the megacap tech stocks with their usual fervor.