May the Profits Be Ever in Your Favor: Earnings Season Heats Up!

A Week of Reckoning: More Than Just Bread

Alright rebels listen up. It's that time of year again – no not the reaping worse. It's earnings season! The Capitol... I mean Wall Street is watching closely as over 160 S&P 500 members including the likes of Apple Meta Platforms and Microsoft are about to spill their guts about how they're doing. After all 180 companies including Google’s Alphabet beat earnings and revenue expectations. It looks like 74% of the S&P 500 have had a good quarter. It's like the Hunger Games but instead of fighting for survival they're fighting for profits. And believe me sometimes it feels just as deadly.

GM's Gamble: Will the Odds Be Ever in Their Favor?

First up we've got General Motors reporting on Tuesday before the market even opens. Last quarter they beat earnings but their stock still took a nosedive. Talk about a Mockingjay moment – defying expectations only to get your wings clipped anyway. Experts are saying to keep an eye on how trade issues are hitting their bottom line. UBS isn't exactly singing their praises downgrading them to neutral. Apparently they're expecting a drop in North American volumes in the coming years. But hey Bespoke Investment Group says GM usually beats earnings. So maybe there's still hope. Just remember in the arena anything can happen.

Coca Cola: The Unstoppable Force? Or Just Really Good Marketing?

Also reporting Tuesday before the bell is Coca Cola. Last quarter they crushed sales thanks to global demand. This quarter analysts are expecting things to be...flat. Yikes. But some folks over at JPMorgan seem to think Coca Cola might be a safe haven in these turbulent times thanks to U.S. tariffs. They think the company will be safe. Apparently Coca Cola has been beating earnings since early 2020. Though their stock doesn't exactly go wild on earnings days. Honestly I'm surprised they haven't tried sponsoring the Hunger Games with a 'Capitol Fizz' or something. 'It burns!'

Meta's Metaverse Mayhem: A Digital Arena of Profits and Losses

Wednesday we've got Meta Platforms stepping into the arena after the market closes. Last quarter they surprised everyone with a top line beat sending their stock sky high. This quarter they're expected to show some serious growth. Not everyone's convinced though. Needham's Laura Martin is worried about downward revisions and rising costs. She's even got an underperform rating on them. Ouch. On the bright side Bespoke says Meta shares tend to do well after earnings. So maybe all those virtual reality goggles are finally paying off. If not I'm sure they can always find a way to sell more digital bread to the masses.

Microsoft's Minefield: Navigating the Cloud and AI Boom

Also on Wednesday after the bell is Microsoft. Last quarter their revenue guidance was a total downer sending their stock south. This quarter they're expected to show some decent growth. KeyBanc downgraded Microsoft citing cloud demand and a tricky AI landscape. Apparently IT budget growth is slowing down and even the security sector is feeling the pinch. Bespoke says Microsoft hasn't been doing so hot on earnings lately with shares dropping after the last three reports. Looks like even the mighty can stumble in this arena.

Apple's Orchard: Rotten to the Core or Ready to Bloom?

And finally Thursday we've got Apple stepping up to the plate after the close. Last quarter they got a boost from services but iPhone sales weren't exactly stellar. This quarter analysts are expecting some mid single digit growth. But Apple's been having a rough time lately with tariffs and that whole 'Apple Intelligence' fiasco dragging their stock down. Bespoke says Apple usually beats earnings. Can they pull off another win and calm everyone down? Only time will tell. Just remember even the best archer can miss the target sometimes.