For Wall Street, this is a big week for the technology sector. Magnificent Seven stocks posting results are Meta Platforms (META), Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), and Microsoft (MSFT). Investors are confident that GOOG, AAPL, and AMZN shares will perform well after their reports.
MSFT stock is a concern. They continued to ignore the weak CoPilot AI subscription figures. By committing to capital expenditures that are on par with those of its competitors, Microsoft risks cost overruns. Subscription revenue for Azure, SQL Server, and Office 365 will easily provide the cash flow to pay for AI servers. However, if CoPilot hurts their subscription growth, Microsoft’s growth trajectory might dip.
Volatile Stock Trades
Traders will look for stocks having the most volatility ahead of their earnings report. Robinhood (HOOD), Sofi (SOFI), Western Digital (WDC), and Reddit (RDDT) are popular choices.
In the defensive space, long-term investors might consider Altria (MO), Mondelez (MDLZ), Coke (KO), and Spotify (SPOT).
Parcel delivery provider UPS will give investors a sense of the economic health. Weaker package volumes would suggest that international trade is weakening. That would imply a downtrend in GDP growth. Shares of Visa (V) and Mastercard (MA) might continue their downtrend. Throughout the year, MA and V shares fell steadily. Buyers emerged last month as the stock rebounded. However, that bounce faded for several days in a row last week.
