On today’s episode of Full Court Finance here at Zacks, Ben Rains takes a look at what investors should expect from Apple AAPL, Amazon AMZN, and Microsoft’s MSFT quarterly earnings results that are all due out later this week. Wall Street will be closely watching the three tech giants for more clarity surrounding the coronavirus and to see if they can remain safe-haven investments.
The overall earnings picture has quickly deteriorated as the coronavirus pandemic continues to bring the global economy to as near a halt as many thought possible. For instance, our Zacks estimates project that overall S&P 500 earnings will fall -15.3% in the first quarter, and the outlook appears even worse in Q2 (also read: Previewing Tech Sector Earnings).
That said, energy, transportation, autos, consumer discretionary, and other sectors are projected to take huge hits. Meanwhile, tech sector S&P 500 earnings are only expected to slip -0.7% in the first quarter. This might mean that tech stocks, and certainty the mega-cap powers we discussed today, should play even larger roles in investment portfolios.
Amazon stock has climbed to new highs recently because its business model seems relatively immune from the coronavirus economic downturn. For instance, the e-commerce powerhouse has committed to hiring more people to deal with increased demand, even as millions of jobs are lost elsewhere.
Cloud computing rival Microsoft also looks set to grow as millions of people work from home. The tech firm’s diverse portfolio includes business-communication platforms to challenge the likes of Zoom ZM and Slack WORK, and many more offerings that remain vital during these challenging times.
Apple has expanded its portfolio to include a streaming TV platform to compete alongside Netflix (NASDAQ:NFLX) NFLX, Disney DIS, and others. However, AAPL appears as though it will face setbacks in its key iPhone segment due to lower demand and production setbacks.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Microsoft Corporation (NASDAQ:MSFT): Free Stock Analysis Report
Amazon.com, Inc. (NASDAQ:AMZN): Free Stock Analysis Report
Apple Inc. (NASDAQ:AAPL): Free Stock Analysis Report
The Walt Disney Company (NYSE:DIS): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Zoom Video Communications, Inc. (ZM): Free Stock Analysis Report
Slack Technologies, Inc. (WORK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research