Big Tech Earnings Expectations in AMZN & GOOGL Cloud, META Volatility

Core Insights - The earnings reports for the MAG 7 companies, including Meta, Microsoft, Tesla, and Apple, are highly anticipated this week, with over 90 S&P 500 companies reporting [2] Company-Specific Insights - Amazon is expected to show resilience due to its dual business model of AWS and consumer retail, with a focus on whether AWS can reaccelerate growth above 21% and the stability of its advertising business, which is currently valued at $65 billion and growing at 24% [3][4] - Meta is viewed as a potential mover in the market due to its affordable valuation, trading at less than 20 times the 2027 estimate, and the healthy digital ad market, with upcoming catalysts such as the World Cup and midterm elections [5][6] - Meta's ability to manage costs will be crucial, especially regarding capital expenditures (capex) and operational expenditures (opex), with expectations that higher capex could be offset by effective opex management [8][9] - Alphabet's Google Cloud business is critical for maintaining growth, with expectations of 35% year-over-year growth and a significant backlog of $155 billion, while the company is also seen as a leader in AI monetization [11][12][16] - Concerns exist regarding Alphabet's potential overspending, which could lead to disappointment despite strong performance in search and YouTube [15][17] - The overall sentiment indicates that execution will be more critical than bookings for these companies, with potential bottlenecks in energy and memory impacting future growth [18]