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Big Tech stocks drove the rise in the S&P 500 in the first half of the year. (Photo by JUSTIN TALLIS/AFP via Getty Images)
The U.S.’s biggest technology companies had a mixed earnings season as continued excitement over artificial intelligence was balanced against fears about slower consumer spending. Amazon.com, Meta Platforms, and Alphabet came out strongest, according to DataTrek Research.
Following the reports, Wall Street analysts raised their forecasts for profits at
Amazon
(ticker: AMZN),
Meta
(META) and
Alphabet
(GOOGL), Google’s parent, both for the current and following quarters, DataTrek co-founder Jessica Rabe said in a research note Friday.
In contrast,
Apple
(AAPL) and
Microsoft
(MSFT) got upward revisions for the current quarter, but expectations were lowered for the subsequent quarter. Forecasts for Tesla’s (TSLA) performance fell for both quarters following its earnings report.
Nvidia
(NVDA) will report its second-quarter earnings later this month.
“Wall Street analysts mostly liked what they saw in these companies’ Q2 earnings reports, especially for Amazon which is the standout in terms of improved investor sentiment over the past month,” Rabe wrote.
Amazon stock surged after its earnings as investors welcomed growth in its cloud-computing business. Wall Street analysts raised their forecasts for earnings by 45% for the current quarter and by 29% for next quarter, according to DataTrek.
Amazon was 0.2% higher on Friday, while the S&P 500 was wobbling between small gains and losses. The stock is up about 65% this year so far.
Forecasts for Meta and Alphabet increased by smaller amounts. The market applauded positive signs in advertising for both companies, as well as their progress in AI.
“Largely positive earnings momentum after just reporting Q2 results is an encouraging fundamental signal, but further cost-cutting initiatives would be helpful to keeping this trend going,” Rabe wrote.
Write to Adam Clark at [email protected]
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