Big tech earnings preview: What you need to know before they report

Daniel Newman, CEO, Futurum Group, breaks down what investors should watch for ahead of next week's big tech earnings.

Transcript

00:00Apple's next on tap as we think about next week's earnings.

00:03We have Meta, Apple, Microsoft, Amazon.

00:06What can we expect to get us prepared for those?

00:09Well, Apple, I think we're going to see a pretty, it's going to be pretty dry.

00:15You know, I'm hoping we're not just hearing about buybacks.

00:17They've had some big changes in management, COO stepping down.

00:21We've had some of their top AI talent poached.

00:23People are going to be looking at the handset number.

00:25They're going to be looking at impact from China.

00:26You know, we expect it to be pretty flattish.

00:29So we're not super excited about Apple.

00:32They're number six on my power rankings for the Mag 7 right now.

00:35Only Tesla sits below because at least Apple still has the cash machine.

00:38It's just, it's really struggling with innovation.

00:41Microsoft has been a juggernaut and very consistent with their Azure business.

00:46I am a little worried about its dependence on open AI because how fractured that relationship clearly is.

00:52But it's all about the Azure number with Microsoft.

00:54Is Azure growing and that Google number is going to be the comparison point?

00:57Are they growing as fast as Google?

00:59Or slower than Google?

01:01You know, Oracle's been a bit of the dark horse here because they've had this massive growth number.

01:05And of course, that's partially powered by open AI.

01:07So there's all these things happening.

01:09And then Amazon, AWS, that's where they make all their money.

01:13Now, their ads business has been impressive.

01:15It'll be another one to sort of compare against the YouTube and the Google click ad business.

01:21But we think that Amazon's thesis is intact.

01:24We think they've made good progress in AI.

01:26We expect that their growth will be the slower end.

01:29But they are still dealing with a lot of large numbers, Caroline.

01:32They are the largest cloud by a long margin.

01:36And so their growth has gone into the mid to high teens.

01:38So Amazon's solid.

01:40Apple, we continue to be worried about.

01:42But we know they know how to operate and do business.

01:44That's Tim Cook's special.

01:45So I don't think the earnings will be bad.

01:47I just think people continue to be a little bearish on the narrative.

01:50And then Microsoft, I think, will do the business.

01:53They've done it consistently.

01:54I don't see any reason to be too concerned here.