What should investors make of this year’s third-quarter earnings? The Q3 results have been pretty good, with 78% of companies reporting so far beating the forecasts, but stocks are still feeling pressure. One obvious sign of that pressure: the S&P 500 this week hit its lowest point since last May, and is just shy of correction territory.
The effect is most clearly seen in the ‘Magnificent Seven,’ a group of Big Tech giants whose gains earlier in the year carried the markets generally – but which are facing serious losses lately, despite solid earnings results. Four of these tech giants – Alphabet, Amazon, Meta, and Microsoft – have reported earnings so far, and all beat expectations. The group as a whole is expected to show a 33% year-over-year increase in profits this earnings season. Even so, the Magnificent Seven stocks are down 11% since the end of July.
But does this mean you shouldn’t buy in? Wall Street’s analysts are weighing in on that question, especially relevant with both Apple and Nvidia scheduled to release earnings in the near future. These are iconic names, leaders in their respective industries, and they have proven records of long-term success. Let’s put them into focus ahead of their upcoming financial releases to see where they stand now and why some analysts are recommending ‘Buy’ ahead of the earnings results.
Don’t miss
Apple (AAPL)
We’ll start with a company that needs little introduction: Apple. Apple’s $2.67 trillion market cap makes it the largest publicly traded firm in the world. The company is best known for its iconic products, including the iPhone line, iPads, and MacBook computers. Apple’s success was built on its reputation for high-end quality and the professional-level applications that the Mac computer lines could support. In recent years, the company has been expanding its service segment.
Story continues
Apple has also been working to integrate AI technology into its user experience. The company has used it to improve the autocorrect feature on its iPhone line and is using AI to create a smarter…
..
