Preview of this week's financial reports: Apple, Amazon, Meta, and Microsoft

Apple Q3 Earnings Preview

Apple is set to announce its earnings after the market closes on Wednesday, October 23rd. Wall Street predicts an earnings per share of $1.59 and revenue of $94.21 billion.

Attention will be on the sales growth of the iPhone, expected to increase by 2.5%. Weaker-than-expected demand for the iPhone 16 indicates consumers are in a weaker upgrade cycle.

Apple's performance in China will also be a focus for investors, with recent third-party data showing mixed results in sales and demand for the iPhone 16.

Apple's emphasis on artificial intelligence features through Apple Intelligence will continue to be watched, as AI features will be integrated into its product lineup. Despite these efforts, AI-related expenses are only expected to increase slightly.

Apple is expected to maintain its capital return program, with plans to repurchase 250 billion shares this quarter.

How to Trade AAPL Earnings

Apple's trading price is above the uptrend line since mid-April. Earlier this month, the price rose to a historical high of 237 but has since retraced. Bulls will look for the bullish momentum to continue above 237 and set a new high. Support is at the October low of 221. Breaking below this level will create a lower low, opening the path towards the September low of 213.

Amazon Q3 Earnings Preview

Amazon is expected to release its third-quarter performance after the market closes on Thursday, October 31st.

Amazon's performance in the third quarter is expected to remain strong. Earnings per share for Amazon are projected to be $1.14, with revenue of $157.7 billion, a 93% annual growth rate. Revenue is expected to increase by 11% compared to the same period last year.

Key areas such as e-commerce, cloud computing, and advertising will be in focus.

Amazon's e-commerce business remains a significant revenue driver, with total sales in the U.S. and international markets accounting for over 80% of the company's revenue in the previous quarter. Investors will closely monitor the impact of rising economic uncertainty, inflation, and declining interest rates on these regions.

Amazon Web Services is the world's leading cloud computing platform and the fastest-growing segment for Amazon. Sales in this segment grew by 19% year-on-year, and this trend is expected to continue. Despite increasing competition, the company's dominant position (31% market share) in this sector does not appear to be challenged at the moment. Investors hope to see continued growth in this area Artificial intelligence will be a focus, especially in research and development, as its product line (including AWS, Alexa, and Amazon Prime Video) has added AI-related features, highlighting the company's commitment to driving growth through the introduction of AI.

How to Trade AMZN Financial Reports

On the weekly chart, Amazon has been trading within an upward channel since the beginning of 2023. The price has risen from a low of 151 in August to a historical high of 200. Bulls expect the price to rise above 200 and set a new all-time high. Support is located at the lower channel boundary of 180 and the low of 171 in September.

Meta Financial Report Preview

Meta will release its financial report after the market closes on Wednesday, October 30th. The market is eager to see if the high valuation of the company's stock, which has risen by 60% year-to-date, can be supported by fundamentals.

Meta is expected to have earnings per share of $5.20, higher than $4.39 in the same period last year, with revenue of $40.25 billion, an 18% increase from $34.15 billion in the same period last year.

After the social media giant announced its financial report in July, Meta's stock price surged, indicating that AI optimization for user engagement has yielded initial returns.

Meta's AI optimization plan is expected to continue to generate revenue this quarter. CEO Mark Zuckerberg has set a goal for Meta to become the most widely used AI assistant in the world by the end of this year. In September, Meta released Llama3.2, its most powerful AI model to date, as the company strives to compete with Microsoft's Open AI, Google under Alphabet, and Amazon.

Meta's ad revenue is expected to reach $39.54 billion, higher than $38.33 billion in the second quarter.

Since the beginning of this year, Meta's stock price has surged by over 60%. Apart from one analyst, all analysts covering Meta have given the stock a buy or equivalent rating.

How to Trade Meta Financial Reports

On the weekly chart, Meta has been on an upward trend since the end of 2022. Earlier this month, the price reached a historical high of 602 and then fell to the current 573. Bulls expect the bullish trend to continue above 602 and set a new all-time high. Support is at the highs of July and August at 542. Below this, the low of 495 in September will come into play.

Microsoft First Quarter Earnings Preview

Microsoft is set to release its first-quarter earnings for the 2025 fiscal year on October 30th, with high market expectations prior to the closing. This tech giant in the fields of cloud computing, artificial intelligence, and enterprise software is attracting investors' attention to niche markets such as Azure and Dynamics 365, hoping to find signs of sustained growth.

Azure is a key area of focus for investors, especially considering the latest advancements in AI and the fact that it serves as a key revenue driver - Azure's revenue grew by 29% in the previous quarter.

Significant investments in AI infrastructure and products (such as Azure Open AI) along with past strong performance indicate that the performance in the first quarter is expected to continue.

Any signs of growth slowdown could lead to investors selling off the stock, especially considering its slowdown in the European market.

How to Trade MSFT Earnings

Microsoft is trading in an upward channel on the weekly chart, hitting a historical high of 467 in July. Since then, the price retraced to 384 in early August, then rose to the current price of 428 guided by the 50-day moving average. Bulls expect the price to rise above the September high of 440 and then retest 467. Bears need to break below the support level of 384 to create a lower low.

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