LOOK OUT… Tech Earnings Are Coming In Hot

Earlier in the week, we talked about the slate of looming tech stock earnings, and I would be remiss to not continue down this path.

The results are in for both Microsoft (MSFT) and Alphabet (GOOGL), which reported after the bell yesterday, and though the reports weren’t terrible, they weren’t what the market was looking for. The trouble was not that these companies weren’t growing, it was more so the fact that their growth rate for this year paled in comparison to that of last year, which makes sense.

This year has been particularly tough for a large swath of the companies to compete in and has given investors pause when it comes to investing in these names at such lofty valuations. However, this still provides a glimmer of hope for the future as they are moving in the right direction despite the current market conditions.

While GOOGL missed on both earnings and revenue, MSFT beat on both — but growth was the key.

Today, we have Meta Platforms (META) scheduled to report after the close, and this theme may continue to ring true here as well.

In contrast, though, META has been taking it on the chin with its massive investment in Web 3.0 (aka the metaverse). This is something that investors will want to be very wary of as we move forward. Again, META’s earnings will give us that valuable glimpse of what’s going on under the hood.

META still has a rocky road ahead until the metaverse, their main project, is complete and fully introduced to the public. The elephant in the room on this project is no one is really clear on this investment will take shape, or what even their version of the metaverse will really look like. More importantly, investors aren’t sure how this introduction to real world applications can, or even will, improve their daily lives in any real way.

One thing is for certain, however, Mark Zuckerberg is nothing short of a visionary, and if history has taught us anything about these types, it’s that they can often see a future that many cannot. This is what makes them “visionaries.”

For those who believe in this push into unchartered waters, META may be setting you up for a more desirable entry point, but this hinges on your belief in the company, its leader, and his vision of the future. One thing is for certain, you’re in for one heck of a ride.

Current investors in META will want to pay close attention to this report, and even closer attention to the forward outlook of the company that should be laid in the call as well.

But to be frank, it is too early to tell what kind of returns the company’s investment in this project will yield as its completion, as well as the public’s adoption of it, is still a few years down the line. Nonetheless, this earnings season has yet to disappoint on the action, with more undoubtedly to come.

Be ready to pounce on any and all opportunities that may present themselves. Next up, Amazon (AMZN) and Apple (AAPL)…