Tech Earnings On Tap

The tech sector is the market.

Never have we had so much concentration in just a few names with large tech companies driving the bus.

This becomes a make-or-break moment for the rally, and all signs are pointing to positivity.

I must admit that tech companies aren’t in the middle of a roaring growth phase, but the bar has been lowered enough for them to jump over.

Remember, many tech firms like GOOGL are cash cows and print money.

Although they don’t grow like they used to, it is hard to bet against a balance sheet this solid.

If one of a few does “miss” earnings, they inevitably turn into buy-the-dip candidates.

The “Magnificent Seven”—Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), Tesla (TSLA), and Nvidia (NVDA)—have driven over 60% of the S&P 500’s year-to-date gains, fueled by the artificial intelligence circus show.

These reports will test if Big Tech’s growth engine is sputtering or accelerating.

I believe we will see solid collective earnings growth of 15% year-over-year on 14% revenue gains, down from 35% in prior quarters.

This slowdown reflects maturing AI hype, rising capex burdens, and macroeconomic headwinds like potential Trump-era tariffs on China-sourced components.

There are many positives, like in Tesla’s story, and I specifically single out bullish FSD commentary and China success; bears worry about macro slowdowns and regulatory hurdles.

GOOGL offers value if cloud margins can hit 20% by 2026.

Microsoft and Meta follow with Azure cloud up 30%+ from AI demand, but capex doubled to $20 billion quarterly, raising margin concerns.

META expects 22% ad growth and AI tools like image generation. 

Capex guidance hiked to $64–72 billion for 2025 signals AI commitment, but the stock isn’t trading too cheaply either.

Nvidia rounds out late November, with 127% 2025 growth cooling to 50% in 2026, but AI chip dominance keeps it a wildcard.

AI data centers promise long-term dominance but squeeze near-term margins, with cloud growth (AWS, Azure, Google Cloud) expected at 19–30% but profitability is uncertain.

I do expect results to be good for the most part, with some hiccups along the way

There is no doubt that the main players will reinforce that they are highly profitable, but tech isn’t at its strongest stage at this point in the bull market.

Domestically, internals are weakening, and that has been continuing for a few years with poor unemployment numbers and minimal retail growth.

In fact, many tech companies are performing miracles to beat earnings, and the easiest trick in the book is cutting staff.

Meta today announced another 600 job cuts.

Ruthlessly, tech stocks are hanging on by their fingernails to onboard AI revenue as a meaningful driver of earnings, but that driver isn’t ready yet and is still in the formulation phase.

Therefore, I do believe there is a chance that more than a few will announce a “good” quarter, but a soft outlook.

This soft outlook will provide a nice entry point into a short-term bullish trade.

When tech stocks are priced for perfection, you need to wait for the price to come to you instead of chasing.

In sum, expect resilient growth tempered by costs and geopolitics.