Key attractions arrive: Apple, Microsoft, Google, Facebook, Amazon, and Tesla lead the biggest week in earnings أسبوع

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Next week will be the most important of this quarter’s earnings season — even if subsequent weeks beat it in quantitative terms, it would be nearly impossible for you to top this list in terms of dollars and interest.

This is because both Big Tech will report, and these five companies – the parent company of Google Alphabet Inc. GOOGL, +3.58% GOOG, +3.37%, The center of e-commerce and cloud computing Amazon.com Inc. AMZN, +0.51%, Apple Inc. AAPL, +1.20%, social media giant Facebook Inc. FB, +5.30% and software giant Microsoft Corp. MSFT, +1.23% – It could determine the trajectory of the market at this point in history.

Consider these stats, from the Dow Jones Market Data Group:

The five big tech companies made up more than a fifth of the total market capitalization of the S&P 500 SPX, +1.01% at the end of the second quarter, 22%. In the first quarter, they provided approximately 10% of the total sales of the 500-member index, and about 18% of the total profit (9.7% and 17.8%, respectively). That percentage of Big Tech’s revenue is actually down from 2020, when the five companies provided nearly a quarter of the index’s profits for the full year, 23.8%, and represented 9.1% of total sales.

Next week, the five companies are expected to report some big profits and sales for the second quarter, which can usually be slower before going back to school and holiday shopping in the second half of the year. Collectively, they are expected to report profits of nearly $60 billion on sales of more than $310 billion, according to analyst estimates compiled by FactSet.

These estimates are likely to be conservative. So far this quarter, 88% of S&P 500 companies have exceeded average analyst estimates of earnings per share, and 86% have outperformed revenue with nearly a quarter of the reporting benchmark, according to FactSet. Both of those numbers would be records for the surprising gross ratio, which FactSet traces back to 2008, according to senior earnings analyst John Butters.

For example, Facebook and Google are widely expected to surpass estimates after fellow online advertising sales associate Snap Inc. SNAP, +23.82% and Twitter Inc. TWTR, +3.05% blew up expectations in their reports last week, helping boost Alphabet and Facebook will hit record highs on Friday, along with Snap.

See also: Facebook earnings preview and Alphabet earnings preview

The stock’s movement is unlikely to be determined by the numbers those companies report, especially after Friday’s big bounce; The outlook was even more important to investors as they waited to see how long the current corporate earnings boom would last. All five companies have been cautious in their forward-looking statements during the COVID-19 pandemic.

Apple has stopped providing guidance during the pandemic, which will hamper the annual salon game of trying to gather facts about the upcoming iPhone release from the company’s financial outlook. While Microsoft is expected to end its fiscal year breaking the records it set the previous year by a healthy amount, it will likely only provide official financial guidance for the next quarter rather than the entire year, as executives have done in the past.

Full earnings preview: What will Apple say about the upcoming iPhone at earnings time? Maybe more than usual

Most of Big Tech’s expectations shared ended up without actual performance, which can keep expectations low and produce big beats. For example, Amazon topped its top-end sales forecast of 2.3% in the first quarter, which equates to an additional $2.5 billion. That was actually the closest Amazon came to an accurate prediction in the year of the $1.2 trillion pandemic for Big Tech, after exceeding the upper end of its quarterly guidance by 3.8%, 3.4% and 9.8% looking back from the fourth quarter.

So expect at least a few big profits and a lot of questions about what’s coming next as these reports roll in during the week. Apple, Google and Microsoft expect to report on Tuesday afternoon after markets close, while Facebook follows Wednesday afternoon and Amazon concludes on Thursday afternoon.

Call to place Tesla Inc. On your calendar when Tesla TSLA, -0.91% CEO Elon Musk speaks, the markets are listening.

Silicon Valley’s most controversial CEO has sent cryptocurrencies like bitcoin BTCUSD, +3.99% and dogecoin DOGEUSD, +3.29% on crazy rides with his tweets and statements so far this year, but when he starts his after-hours earnings week list on Monday afternoon, he should The focus is on Tesla and its stock.

As always, there are plenty of issues to discuss with the electric car manufacturer. Following the departure of a long-time executive, progress on Tesla’s semi-road map will have to be addressed, as will the gross margin effects of the ongoing shortage of semiconductors, a problem across the auto industry.

Full preview of Tesla earnings: Semi-truck, Cybertruck pickup and chip shortage in focus

It’s also possible that Tesla will address its plans to sell its advanced driver assistance features as a subscription package, even as Consumer Reports joins a chorus of criticism over Tesla’s approach to autonomous driving. Musk’s recent announcement that Superchargers will open to electric vehicles from other manufacturers, as well as demand amid fierce competition in China, will also be a topic to look out for.

Also watch for comments on the chip shortage from other cooler automakers, such as Ford Motor Co. F, down -0.65% on Wednesday, plus chip supplier Qualcomm Corp. QCOM, +1.71%.

Hasbro Inc. and Mattel Inc. Could there be a more worrisome phrase than “toy shortage” as the holiday shopping season approaches?

Well, analysts raised the alarm last week that we might have just that, after parents bought bundles of off-season toys to keep their kids entertained while they come home from school during the COVID-19 pandemic, putting a hurdle in the industry’s supply chain. We expect executives to address any issues at the Santa Workshop at Hasbro HAS, -0.89% reports on Monday and Mattel MAT, -1.60% to follow on Tuesday.

The numbers to see the final result of Boeing. Boeing BA, +0.29%, is expected to post another loss this quarter, but analysts expect it will buck the trend and contract a much larger loss than the consensus average. Vertical Research analysts said, while Benchmark analyst Josh Sullivan predicted last week that Boeing will exceed $1 for its share of the losses, “We believe Boeing is preparing to announce another huge loss in the second quarter, with free cash flow of $2.8 billion according to to our estimates. While the average analyst estimate is currently looking at a loss of about 83 cents per share. Fast food sales. After strong reports last week from Chipotle Mexican Grill Inc. CMG, +1.81% and Domino’s Pizza Inc. DPZ, -2.48%, burger makers and casual restaurant chains will tell if their pandemic-affected boom continues as certain areas of the US open higher. On this week’s schedule, there will be McDonald’s Corp. MCD, +1.80%, SHAK, +0.63%, Yum Brands Inc. YUM, +2.10% (and Yum China Holdings Inc. YUMC, +0.65%), and Wingstop Inc., +1.20%. Also look for signs of change from chain restaurants that rely more on indoor traffic but have focused on more takeout during the pandemic, such as Cheesecake Factory Inc. CAKE, -0.31% and Bloomin’ Brands Inc. BLMN, +0.55%. This week in earnings

Exactly a third of the Dow Jones Industrial Average 30, +0.68% components and more than a third of the S&P 500 components, up to 180, are expected to post earnings next week, according to FactSet. Notable reports outside of major indexes include Canadian e-commerce platform Shopify Inc. SHOP, 3.09% + and streaming music service Spotify Inc. SPOT, -0.22% on the same Wednesday morning, which is bound to cause some confusion between two similar companies, as well as Twilio Inc. software maker in Silicon Valley, +1.07% Thursday afternoon.

Dow Jones Industrial Average Report: 3M MMM, +0.71%, Apple, Microsoft and Visa Inc. V, + 2.00% (Tuesday); Boeing and McDonald’s (Wednesday); Merck & Co. MRK, +1.32% (Thursday), CAT, +0.18%, Chevron Corp. CVX, +0.04%, Proctor & Gamble Co. PG, +1.44% (Friday)

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