Tech sector expected to have strong Q4 earnings, with focus on Microsoft, Alphabet, and Amazon

From Zacks Investment Research: 2025-02-03 04:48:15

Zacks.com has released a list of companies likely to issue earnings surprises, including Microsoft, Alphabet, and Amazon. Market participants are skeptical of heavy spending on AI-centric data centers by these companies. Microsoft and Meta reported Q4 earnings, with Microsoft disappointing in core results and Meta showing operating momentum. Apple and Tesla also reported results, with concerns about Apple’s Chinese market performance. Total Q4 earnings for the Technology sector are expected to be up +19.2% from the same period last year. S&P 500 members have shown positive results, with 80.4% beating EPS estimates. Key earnings reports this week include Pfizer, Pepsi, Ford, Amazon, and Alphabet. Earnings growth is broad-based across sectors, with expectations for double-digit growth in 8 of the 16 Zacks sectors for 2025.

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Read more at Zacks Investment Research: Microsoft, Alphabet and Amazon are part of Zacks Earnings Preview – February 3, 2025