5 Technology Stocks to Watch Ahead of Earnings This Week

In this photo illustration, a person looks at a smart phone with a Facebook App logo displayed on the background, in Arlington, Va., on Aug. 17, 2021. Olivier Douliery/AFP via Getty Images

The week of Oct. 25 is shaping up to be a big one for anyone that holds index funds or has exposure to technology stocks. Five of the largest and most well-known names in the technology space report earnings this week.

Here are the key figures and items investors should be watching.

Facebook

Facebook Inc. reports earnings Monday, with estimates calling for revenue of $29.6 billion. Facebook has beat the Street consensus revenue estimates 11 straight quarters, according to Benzinga Pro.

The company posted revenue of $26.2 billion in the first quarter and $29.1 billion in the second quarter. The company’s second-quarter report included a cautious outlook for the second half of the year, which could factor into the third-quarter earnings.

Facebook is reportedly planning to change its name, a move that coincides with the company investing heavily in the growth of its “Metaverse.” An update on the new name or timing of a name change could come Monday.

Alphabet

Alphabet Inc. reports third-quarter earnings Tuesday after hours. The company beat revenue estimates the past six quarters. Estimates call for the Google parent to post revenue of $63.4 billion, ahead of the $56.billion and $51.7 billion posted in the last two respective quarters.

The company’s growth in search, an expanding market for online advertising and growth for the company’s YouTube segment were among the highlights for analysts from the last quarter.

Twitter

Twitter Inc will likely be among the most talked-about earnings reports this week with results coming Tuesday after hours. The company has beat estimates for revenue the last four quarters; analysts estimate $1.29 billion in revenue for the third quarter. Monetizable daily active users were up 11 percent year-over-year in the second quarter, hitting 206 million.

One big topic for Twitter’s earnings call could be the company’s concerns about how a social media platform competitor from Donald Trump’s new company could affect its user base. Trump’s new media and social media efforts are part of a SPAC deal with Digital World Acquisition.

Investors could also be hoping to hear more about Twitter’s plans to expand in cryptocurrency and NFTs. The company will allow tipping with Bitcoin BTC and has shared some early looks at showing off verified NFTs on the platform.

Microsoft

Microsoft Corp. reports its first-quarter financial results Tuesday after hours. Analysts are estimating revenue of $44 billion. The company has beat analysts’ estimates in the last 13 quarters for revenue.

Microsoft reported continued strength of its cloud business in the fourth quarter including its highest fourth-quarter growth in six years. Investors will be looking for that strong momentum to carry over into the new fiscal year.

Azure revenue was up 51 percent in the fourth quarter, which was a highlight for analysts who cover the stock. Microsoft recently announced further entry into the fintech space, which could be an item to watch on the earnings call.

Apple

Apple Inc. reports fourth-quarter earnings Thursday after market close. Apple has beat analysts’ revenue estimates for the past 13 quarters. The current estimate is an average of $84.8 billion in revenue for the fourth quarter.

Apple has highlighted new products across several business lines over the last few months and investors will be looking to hear updates on how those products are selling and what the company expects for the next fiscal year.

By Chris Katje

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