Big Tech Report Results Amid Stocks at All-Time Highs

26 Jul 2021 · 3rd Party Analysis

Big Tech Report Results Amid Stocks at All-Time Highs

WRITTEN BY ThorFX

In Summary

  • Corporate giants Apple, Amazon, Tesla, and more are scheduled to report Q2 earnings this week
  • Stocks sit at all-time highs; Dow closes above 35,000 for the first time on Friday

Corporate earnings reports for the second quarter are expected from technology giants over the week. Investors will be looking to find out how the Covid-19 pandemic and the broader economic reopening impacted the biggest companies in the US during the second trimester of 2021.

As many as 180 companies, or about one-third, of the S&P500, are scheduled to report their corporate earnings updates. Among them are the world’s biggest and brightest technology juggernauts, Apple, Amazon, Tesla, Facebook, Microsoft, Google-parent Alphabet. Moreover, the list also includes McDonald’s, Starbucks, Boeing, General Electric, and Ford Motor, among others.

So far, quarterly results from the larger part of the S&P500 companies already reported have produced better-than-expected figures, beating analyst estimates. Firms at large are benefiting from the swift reopening and return of business activity, compared with the same quarter a year ago when economies were under harsh lockdowns.

Electric car company Tesla will kick off the earnings reports this week. The EV maker is slated to publish its financial results on Monday. Thus, Wall Street estimates the Elon Musk-led company will report sales amounting to $11.53bn for the quarter ended June. The consensus is almost double the company’s $6.04bn in sales in the second quarter of 2020.

Big Tech Names Report on Earnings

Apple, Microsoft, and Alphabet press ahead on Tuesday with their quarterly financials after the closing bell. Indeed, Apple delivered a blowout first-quarter results as profit more than doubled to $23.6bn on revenue of $89.6bn. This quarter, analysts expect sales to land at $73.3bn. Also, Microsoft is expected to report a 16% increase in sales on an annual basis to $44.13bn. If met, the figures will represent Microsoft’s highest quarter ever.

Alphabet, the company behind Google, has benefited strongly from an increase in online advertising on Google’s network. At the end of the first quarter of 2021, Alphabet posted a record sales number. Consequently, analysts expect the second quarter to produce an even higher number as sales arrive at $56.19bn, buoyed by advertising revenue from companies anticipating the reopening.

Facebook delivers its quarterly figures on Wednesday. Wall Street expects the social media giant to announce sales of $27.84bn, higher than the first-quarter number of $25.44bn. Amazon, which reports on Thursday, is expected to deliver another blowout quarterly sales figures, at $115bn. 34bn. If achieved, this would be the company’s third straight quarter of sales reaching above $100bn.

US Stock Market at All-Time-High

As corporate giants reveal their financials for the second quarter, the US stock market is sitting at all-time highs. On Friday, the major equity gauges rallied to records, boosted by the return of risk appetite. Investors were triggered to increase their bets on stocks on the back of strong quarterly reports and improved market outlook. The blue-chip 30-stock Dow Jones closed above 35,000 for the first time in history.

Overseas, European shares also pushed higher and ended Friday’s trading at a fresh record. The pan-European Stoxx 600 advanced more than 1% to 461.51.

Bitcoin and the entire cryptocurrency space added over $200bn to the market’s valuation since Saturday. The leading digital currency extended its weekend gains into Monday and is currently trading at levels near $39,000. Bitcoin is up almost 20% for the past three days as optimism has returned to the nascent market.

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