From Nasdaq, Inc.:

Tech stocks have continued to dominate the market in 2023, buoyed by confidence in the Fed’s policy adjustments. The growth of artificial intelligence (AI) and improving business spending trends, particularly on the cloud side, are contributing to the sector’s stock market momentum. Earnings reports from key players like Amazon, Meta, and Apple will shed light on AI plans.

While the Big 7 Tech Players’ stock performance varied, they are all heavily focused on AI. The AI debate and its impact on business models are expected to be particular points of interest in earnings reports this week. Consensus expectations anticipate the group to bring in 38.6% more earnings and 12.4% higher revenues compared to the same period last year. These expectations have been steadily increasing in recent months.

It’s not just the “Big 7” that are focused on AI, with Snap reporting Q4 results the following week. Total Q4 earnings for the Technology sector as a whole are expected to be up 19.3% from the same period last year. The sector has only recently recovered from negative earnings growth, with the worst of the growth challenge now in the rearview mirror. The Tech sector is expected to exceed the profitability level of 2021, with significant gains expected in 2023 and beyond.

Q4 earnings from 124 S&P 500 members show a 0.4% decrease from the same period last year, but with 79% beating EPS estimates. The index’s total membership accounts for 24.8% of the entire index’s portfolio, with over 300 companies yet to report this week. The comparison charts provide a historical context for Q4 earnings and revenue growth rates, and EPS and revenue beats.



Read more: Big Tech Earnings Loom: What Can Investors Expect?