Four of the seven stocks in the well-known Magnificent Seven basket of top technology stocks report earnings this week, setting the market up for one of the most important weeks of the quarter.
Here's why the week is important and what to look for when each company reports.
Magnificent Seven Stocks on Watch
During the upcoming week, Microsoft Corporation (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Tesla Inc (NASDAQ:TSLA) and Apple Inc (NASDAQ:AAPL) will all report quarterly results.
Of the four stocks, only Tesla beat the S&P 500 in 2025, with the other three underperforming the major index.
All four stocks are large holdings in the Roundhill Magnificent Seven ETF (BATS:MAGS) and large holdings in the SPDR S&P 500 ETF Trust (NYSE:SPY). Here are the current weightings in the SPY at the time of writing:
- MSFT: 5.9%, third largest holding
- META: 2.4%, eighth largest holding
- TSLA: 2.1%, ninth largest holding
- AAPL: 6.2%, second largest holding
Together, the four stocks account for 16.6% of SPY. With around 20% of the Magnificent Seven stocks reporting earnings this week, including the four large Magnificent Seven stocks, ETFs that track the index could be volatile.
Microsoft and Apple are also two of the Magnificent Seven stocks that belong to the Dow Jones Industrial Average Index. Microsoft and Apple make up 5.8% and 3.1% of the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), respectively.
Microsoft Q2 Earnings
Microsoft will report second-quarter financial results after market close on Wednesday. Analysts expect the company to report earnings per share of $3.86 and revenue of $80.26 billion, versus $3.23 and $69.63 billion in last year's fourth quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for earnings per share in 11 straight quarters and beaten analyst estimates for revenue in 11 straight quarters.
Ahead of the earnings report, Goldman Sachs analyst Gabriela Borges maintained a Buy rating on Microsoft with a price target of $655.
"We believe risk/reward is skewed positive into the print," Borges said.
The analyst said Azure growth and capex could be two areas to watch.
Meta Platforms Q4 Earnings
Meta reports fourth-quarter financial results after market close on Wednesday. Analysts are expecting the company to report earnings per share of $8.18 and revenue of $58.41 billion, versus $8.02 and $48.30 billion in last year's fourth quarter.
The company has beaten analyst estimates for earnings per share in 11 straight quarters and beaten analyst estimates for revenue in 13 straight quarters.
Freedom Capital Markets Chief Market Strategist Jay Woods said Meta's spending habits and guidance could be areas to watch for the earnings result.
"Such spend has excited investors previously, but shareholders are now looking for returns on AI expenditures," Woods said in a weekly newsletter.
Woods said Meta "spooked investors" about profitability with the increased spending guidance. Job cuts for the Reality Labs segment will also be on watch, Woods said.
Tesla Q4 Earnings
Tesla will report fourth-quarter financial results on Wednesday after the market close. Analysts expect the company to report earnings per share of 40 cents and revenue of $24.90 billion versus 73 cents per share and $25.71 billion, respectively, in last year's fourth quarter.
The company met expectations for earnings per share in the last reported quarter and has beaten earnings in only three of the last 10 quarters overall. The company has beaten analyst estimates for revenue in two straight quarters and in four of the last 10 quarters overall.
Tesla's earnings report comes as investors and analysts are heavily focused on robotaxis and FSD and less focused on electric vehicle deliveries.
Goldman Sachs analyst Mark Delaney highlighted Tesla's partnership with Lemonade (NYSE:LMND) that could cost consumers less for car insurance if they have FSD.
The analyst maintained a Neutral rating with a price target of $420.
Delaney said FSD growth could help the company sell more vehicles and grow its subscription business.
A top shareholder question for Tesla management is whether investors in the EV company will get priority access to the SpaceX IPO in 2025. If that question is answered on Wednesday, Tesla shares could see volatility.
Apple Q1 Earnings
Apple reports first-quarter financial results on Thursday after market close. Analysts expect the company to report earnings per share of $2.66 and revenue of $138.07 billion, versus $2.40 and $124.30 billion in last year's fourth quarter.
The company has beaten analyst estimates for earnings per share in 11 straight quarters and beaten estimates for revenue in 11 straight quarters.
After reporting record results in the fourth quarter and seeing shares hit new highs, Apple management promised more records would come in the first quarter. Investors and analysts will find out which records fell and how many on Thursday.
Photo: Shutterstock
