Apple, Microsoft, Meta, Tesla Earnings: What Traders Are Watching This Week

Core Insights - The market has shifted its focus from beating earnings expectations to the importance of future guidance, as demonstrated by Intel's recent performance [1][3][8] Company Performance - Intel reported earnings of $0.15 per share and revenue of $13.7 billion, surpassing analyst expectations of $0.08 per share and $13.4 billion, respectively [1] - Despite the positive earnings report, Intel's stock fell by 17% the following day due to a disappointing revenue outlook for the next quarter, projected between $11.7 billion and $12.7 billion, below the analyst expectation of $12.51 billion [2][3] Market Dynamics - The current earnings season indicates that markets are prioritizing forward visibility and growth momentum over past performance [3][8] - Major technology companies, including Microsoft, Meta, Tesla, and Apple, are expected to report earnings soon, with a focus on guidance related to artificial intelligence spending [4] Investment Trends - There is growing impatience in the market regarding AI investments, with companies that demonstrate clear monetization in cloud services being rewarded, while those that spend aggressively without measurable impacts face declines [5] - The technology sector, representing over a third of the S&P 500's market capitalization, must show that AI spending translates into real demand and earnings growth to justify elevated valuations [6] Earnings Overview - Early earnings data shows strong profit growth, with most companies beating estimates; however, growth is concentrated among a small number of large firms, making the market susceptible to negative surprises [7]