Alphabet, Microsoft, Tesla, Meta And Apple To Report Next Week: Stocktwits Poll Finds Majority Of Retailers Bet On Continued Magnificent 7 Outperformance

Netflix, Inc. (NFLX) kicked off tech earnings with a stellar report and the S&P 500 closed at a fresh closing high on Thursday, driven by expectations of a strong reporting season. 

Five of the Magnificient seven stocks are scheduled to disclose their quarterly scorecards in the upcoming week, and retail investors are increasingly optimistic about the group's strong growth in the new year

The Roundhill Magnificent Seven ETF ($MAGS), an exchange-traded fund that tracks the performance of the seven stocks, climbed about 64% in 2024, outperforming the broader S&P 500 Index. The gains are commendable as they came on top of strong performances in 2023. Between April 11, 2023 (when MAGS began trading, and end-2023, the ETF added over 37%.

MAGS 1-Year Chart courtesy of TradingView

Risks Remain

The extended rally has introduced caution among investors, with macroeconomic uncertainties clouding the outlook further. Among the headwinds are a lack of clarity on the Federal Reserve’s interest rate trajectory and the potential impact of President Donald Trump’s tariff proposals and regulatory environment.

According to the consensus price targets provided by TipRanks, the upside potential presented by each stock is as follows:

• Tesla, Inc. (TSLA): (-20%)
• Amazon, Inc. (AMZN): +7.6%
• Apple, Inc. (AAPL): +8%
• Meta Platforms, Inc. (META): +8%
• Alphabet, Inc. (GOOGL) (GOOG): +10%
• Microsoft Corp. (MSFT): +14%
• Nvidia Corp. (NVDA): +20%

 

The retail community on the Stocktwits platform is undeterred by the bloated valuation of these stocks.

Retail Bullish

An ongoing poll among Stocktwits users, which has so far collected 3,300 responses, show that most retailers (56%) expect strong growth for the Magnificent Seven, with dominance continuing.

Twenty-two predicted a mixed performance, with some laggards and leaders, and a more modest 20% said the group faces challenges ahead, given the hyper and overvalued nature.

A retailer watcher said the next three months could be positive for the group but a 10% retraction is likely at some point. Another said artificial intelligence (AI) investment, specifically by those excluding Nvidia, could result in a profit dip, potentially leading to a correction. However, they expressed confidence these stocks will bounce back as they know how to monetize AI.

Earnings Schedule 

• Tuesday, Jan. 28, after the close: Alphabet
• Wednesday, Jan. 29, after the close: Microsoft, Meta, Tesla
• Thursday, Jan. 30, after the close: Apple

 

Earnings Expectations

• Analysts expect Alphabet to report fiscal year 2024 fourth-quarter non-GAAP EPS of $2.12, up from last year’s $1.64, and revenue to rise to $96.62 billion from $86.31 billion.
• Microsoft’s fiscal year 2025 second-quarter non-GAAP EPS is expected to increase year-over-year (YoY) to $3.12 from $2.93, and revenue will likely rise to $68.89 billion from $62.02 billion.
• Meta is widely expected to report fourth-quarter non-GAAP EPS of $6.75 versus $5.33 a year ago and revenue of $46.97 billion versus last year’s $40.11 billion.
• Street analysts estimate Tesla’s fourth-quarter non-GAAP EPS at $0.76, up from the $0.71 reported for the same quarter last year. Revenue is also expected to increase year over year to $27.16 billion from $25.17 billion.
•  Apple’s fiscal 2025 first-quarter earnings per share (EPS) are expected to increase to $2.35 from $2.18 a year ago, and revenue may have climbed to $124.44 billion from $119.58 billion.

 

In premarket trading on Monday, Alphabet stock added 0.14% to $197.98, Microsoft stock slipped 0.09% to $446.30, Meta stock rose 0.41% to $639, Tesla stock gained 0.52% to $414.51 and Apple stock edged up 0.03% to $223.73.

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