Key Points
- Traders were left wanting more from the Meta and Microsoft earnings last night.
- Apple unveils a new MacBook ahead of an earnings report predicted to be stellar.
- Investors are optimistic for yet another beat on the Amazon earnings report.
- The NASDAQ is experiencing heightened volatility, but will the bulls come out on top again?
Meta & Microsoft Earnings Underwhelm
After the bell last night, Meta and Microsoft delivered its Q3 earnings reports. Meta produced an 18% jump in sales year over year that totaled $40.6bn. It also reported a $6.03 earnings per share, surpassing Wall Street expectations of $5.20 EPS. However, the disappointment arrived when Meta reported that its number of daily users was slightly lower than the analyst projections, 3.29bn vs 3.31bn. The stock price is down nearly 4% in the pre-market.
The headlines from Microsoft’s earnings report centered around the forward guidance. CFO Amy Hood announced she expects a $1.5bn revenue hit in Q4 due to costs around OpenAI. The total investment into OpenAI has nearly reached $14 billion, but this is expected to generate a lot more than that in revenue in the coming years.
Apple Earnings Q3 Preview
It has been a busy week for Apple, and the earnings are not even out yet! It unveiled its updated IMac desktop on Monday, followed by a Mac mini desktop and M4 pro chip on Tuesday. Yesterday, it officially announced its newest MacBook Pro.
Apple stock (AAPL) is currently consolidating around the $230 mark. The earnings released after the bell today are expected to be stellar, with economists projecting a $1.60 EPS on revenue of $94.5bn. Look for a beat on both figures to send AAPL toward $250.
Amazon Earnings Q3 Preview
After the bell today, Amazon will also reveal its Q3 2024 earnings, and investors are optimistic about the figures. Net sales are expected to be way above $150bn, a considerable increase from the same quarter last year. Operating income could also top $15bn, an increase from the $11.2bn in Q3 last year.
Amazon stock (AMZN) has fallen slightly in the pre-market, but if the company records strong E-commerce sales along with positive forward guidance on Cloud Computing and AI, then the stock price could breach $200 once again.
The Bulls In Control – NASDAQ Prediction
It should be no surprise that there have been some higher-than-usual swings in the NASDAQ’s price action. A lot is riding on the big tech earnings, and the concern for the bulls is that despite the clear beats in yesterday’s reports from Meta and Microsoft, the market was left unimpressed.
However, should there be a blockbuster set of reports from Amazon and Apple tonight, the NASDAQ could explode to the upside. The first target for the bulls may be the Fair Value Gap (FVG) created overnight at 20,350. Should this FVG fail to act as resistance, traders could then use it as support to retrace the losses seen during yesterday’s session.
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
