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Earnings season is starting now…
And America’s tech giants reporting first quarter financial results.
- Meta Platforms and Microsoft report Wednesday PM
- Amazon and Apple report Thursday PM
You’ll want to watch these earnings reports like a hawk.
Go here to get my #1 Pre-IPO trade for 2025.
In January the big tech stocks sold off on fears that China was catching up with its Artificial Intelligence innovations.
More recently, these stocks have been hit with concerns related to tariffs and trade wars.
There are two big things to watch with this week’s earnings reports.
#1. Can earnings beat analyst estimates?
Wall Street analysts are expecting the Magnificent 7 to have earnings grow 15% in 2025.
Analyst estimates have not fallen – despite the potential risks and costs of a global trade war. This creates downside risks for these stocks if earnings estimates are cut.
Apple Amazon Meta and Microsoft must meet or beat earnings expectations this week to avoid another selloff.
#1. Will big tech stocks confirm existing AI spending?
Watch the news related to capital expenditures or “capex.”
Big tech stocks are investing huge amounts in Artificial Intelligence datacenters and chips from Nvidia (NASDAQ: NVDA). Maintaining capex guidance is critical if these companies want to dominate AI.
Here is the latest AI spending guidance from several big tech stocks…
- Amazon $100 billion
- Microsoft $80 billion
- Meta $65 billion
This chart shows the dramatic growth expected in 2025.
Any plans to cut AI capex spending would be bad news for semiconductor chip stocks including Nvidia, Advanced Micro Devices, and Taiwan Semiconductor.
That’s why it’s worth watching these numbers closely.
Last week Google confirmed plans to spend $75 billion in 2025.
I’m expecting Amazon, Microsoft and Meta will NOT reduce AI spending in 2025.
Shares of the Magnificent 7 (NYSE: MAGS) jumped 9% last week. However, the index of the seven big tech stocks is still down 15% YTD.
So, what’s the best stock to BUY NOW?
My bet is on an undiscovered company that I call “the next SpaceX.”
The company has developed a new technology that could be critical for cost effectively launching satellites. Plus, it’s hypersonic tech could be very important to the Department of Defense.
Right now, this company is PRIVATE.
They’re completing a final Pre-IPO financing. And that means you can scoop up shares for under $4.
I’m expecting the stock to IPO in 2025 for +$20 per share – a 457% jump from the current price.
Ian Wyatt
P.S. Right now is the LAST CHANCE to buy Pre-IPO shares.
It’s critical that you attend this week’s live Zoom call for details.