From Nasdaq: 2025-04-25 17:19:00

This week kicks off the heart of the Q1 earnings season, with over 800 companies set to report, including Microsoft, Meta, Apple, and Amazon. Mag 7 stocks have struggled recently, with Microsoft outperforming S&P 500, while Apple, Amazon, and Meta have lagged behind since February 2025.

These tech giants, including Alphabet and Nvidia, are leaders in the artificial intelligence space, investing in datacenters and infrastructure. Market sentiment is skeptical, questioning the economic value of these investments. Trade uncertainty poses a direct headwind for Apple, Tesla, Nvidia, and Amazon, impacting economic sensitivity and discretionary spending.

Expectations for Mag 7 earnings in 2025 Q1 show a projected increase of +19.6% from last year with +10.9% higher revenues. Estimates have come under pressure, with a +9.9% earnings growth expected this year, down from +15.7% three months ago. Full-year 2025 estimates for Mag 7 members have also faced revisions.

Q1 earnings results are already in for 35.8% of S&P 500 members, showing +18% earnings growth and +4.2% revenue gains. However, EPS and revenue beat percentages are tracking below historical averages. Estimates for Q1 as a whole predict +9.4% earnings growth and +4% higher revenues, reflecting ongoing uncertainty and market weakness.



Read more at Nasdaq:: Mag 7 Earnings Preview: What Can Investors Expect?