Week Ahead Equities Forecast: Apple, Amazon, Meta & Microsoft

Apple Q3 earnings preview

Apple is due to report after the close on Thursday, October 31st. Wall Street forecasts EPS of $1.59 on revenue of $94.21 billion.

Attention will be on iPhone sales growth, which is forecast to rise 2.5%. iPhone 16 has seen softer demand than expected, suggesting a weaker upgrade cycle among consumers.

Apple's performance in China will also remain a key focus for investors, with recent third-party data showing mixed results regarding iPhone 16 sales and demand.

Apple's focus on AI capabilities through Apple Intelligence will remain under the spotlight as it integrates the feature across its product lineup. Despite these developments, AI expenses are only expected to have increased modestly.

Apple is expected to maintain its capital return programme with forecasted share buybacks of 25 billion this quarter.

How to trade AAPL earnings

Apple trades above its rising trendline dating back to mid-April. The price rose to an all-time high of 237 earlier this month but has since eased lower. Buyers will look to extend the bullish run above 237 and to fresh all-time highs. Support can be seen at 221, the October low. A break below here creates a lower low, opening the door to 213, the September low.

Amazon Q3 earnings preview

Amazon is expected to release Q3 results on Thursday, October 31st, after the close in the US.

Amazon’s Q3 performance is expected to be solid. With EPS of $1.14,up from $0.94c in Q3 2023, on revenue of $157.7 billion, Amazon's revenue is expected to increase 11% from the same period a year earlier.

Key areas such as e-commerce, cloud computing and advertising will be watched.

Amazon's e-commerce business continues to be a significant revenue driver, with total sales from the US and international markets accounting for over 80% of the company's revenue in the previous quarter. Investors will be watching to see how the area performed amid rising economic uncertainty but falling inflation and interest rates.

Amazon Web Services is the world's leading cloud computing platform and the fastest-growing segment in Amazon. Sales rose 19% in this segment, YoY and the trend is expected to continue. The company's dominant position in the space (31% market share) appears unchallenged for now despite rising competition. Investors will want to see sustained growth in the segment.

AI will be a key focus, particularly in terms of research and development, amid increased spending on AI-powered features across its product lines, including AWS, Alexa, and Amazon Prime Video, highlighting the firm's commitment to using AI to drive growth.

How to trade the AMZN earnings

On the weekly chart, Amazon trades within a rising channel dating back to early 2023. The price has recovered from the August low of 151, rising back up to 200, the record high. Buyers will look to rise above 200 for fresh ATHs. Support can be seen at 180, the lower band of the channel, and 171, the September low.

Meta Q3 earnings preview

Meta will report earnings after the close on Wednesday, October 30th. The market is keen to see whether the company's lofty valuation, based on its 60% year-to-date share price, is supported by fundamentals.

Expectations are for Meta to post EPS of $5.20, up from $4.39 in the same quarter a year earlier, on revenue of $40.25 billion, up 18% from $34.15 billion in the same quarter a year earlier.

Meta popped after the social media giant reported earnings in July amid signs of early gains from AI optimizing user engagement.

Meta's AI optimization campaign could continue to bring gains this quarter. CEO Mark Zuckerberg has set his sights on Meta’s AI being the most used AI assistant in the world by the end of this year. In September, Meta released Llama 3.2, its most capable AI model yet, amid its efforts to compete with Microsoft OpenAI, Alphabet’s Google, and Amazon.

Meta is expected to post advertising revenue of $39.54 billion, up from $38.33 billion in Q2.

Meta shares have surged more than 60% since the start of the year. All but one analyst covering Meta tracked the stock as a buy or equivalent.

How to trade Meta earnings

On the weekly chart, Meta has been trading in an upward trend since late 2022. The price reached a record high of 602 earlier this month before easing lower to current levels of 573. Buyers will look to extend the bullish trend above 602 and to new ATHs. Support can be seen at 542, the July and August high. Below here, 495, the September low comes into play.

Microsoft Q1 earnings preview

Microsoft is due to release fiscal Q 12025 earnings on October 30th after the market closed with expectations high as the tech giant leads in cloud computing AI and enterprise software. Investors will be watching segments such as Azul and Dynamics 365 for signs of ongoing growth.

Azure is a key area for investors, particularly given its recent AI-driven advancements and the fact that it’s a key revenue driver – Azure revenue grew 29% in the previous quarter.

The significant investment in AI infrastructure and products like Azure Open AI and its solid track record means Q1 results are expected to follow suit.

Any sense that growth is slowing and investors could potentially punish the stock, particularly given the deceleration in some European markets

How to trade MSFT earnings

Microsoft tried in a rising channel on the weekly chart before hitting an all-time high of 467 in July. From there, the price corrected lower to 384 in early August before being guided higher by the 50 SMA to the current price of 428. Buyers will look to rise above 440, the September high, to push back towards 467. Sellers need to take out 384 support to create a lower low..