3 companies of Mag 7 reporting earnings this week. Fireworks or demolition?

PawsAndProfits
10-25 03:56

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.‌

$Microsoft(MSFT)$ $Amazon.com(AMZN)$ $Alphabet(GOOGL)$ are reporting earnings respectively this coming week. Will they struggle to justify their AI spending like $Meta Platforms, Inc.(META)$ which pullback significantly post earnings? Or will they soar to greater heights and break new highs? Additionally, the fed rate announcement is happening this week as well. So it will be wise to not over-leverage yourselves with additional positions, unless your trading system thrives on volatility. Sit on the sidelines and wait for the storm to pass, dust to settle before going gungho again.[Anger]

@PawsAndProfits - Specialist in combining FA and TA for Options selling and Swing trading.[666]

Fed Decision Due Thursday — Will December Path Turn Hawkish?
QQQ was nearly flat Friday while SPY fell 0.52% and Nasdaq 100 futures edged up 0.06%, as investors awaited the Fed decision and mega-cap earnings. Rates are expected to hold at 3.75%–4.00%, leaving focus on guidance for inflation, jobs, and December. High oil prices limit room to ease. A neutral message could leave Microsoft, Alphabet, and Amazon to set direction; a hawkish tone may lift yields and pressure tech valuations. What would show policy risk is fading first: stable yields or neutral Fed guidance?
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Comments

  • Maria_yy
    10-25 22:53
    Maria_yy
    MSFT gap near 420 is the first tell for me. If volume shows up after earnings, odds of a clean breakout improve; otherwise this could turn into another AI capex hangover week lol
    • PawsAndProfits: 
      Yeap I agree. I wont rule out a bullish run completely. But at this juncture, it looks like a tough run.
  • funzee
    10-25 22:53
    funzee
    Rate path matters more here. If discount rates stay higher, AI capex needs way cleaner cash flow soon or these three can all get punished
    • PawsAndProfits: 
      Agree. Forward estimates can only drum up that much optimism eh?
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