In the second quarter earnings season, four members of the “Magnificent 7” — Microsoft (MSFT), Meta Platforms (META), Apple (AAPL), and Amazon (AMZN) — are set to report their financial results this week, July 30 and 31, 2023. These companies together account for nearly one-third of the S&P 500. Earnings for the group are expected to rise 14% year-over-year, driven by a projected 11.9% increase in revenues.
Microsoft forecasts a 13.6% increase in earnings with revenue growth of 13.9%. Meta anticipates close to 13% earnings growth and a 14.77% rise in revenues. Apple is expected to see a modest earnings increase of 1.43% alongside a 3.67% revenue growth. Amazon is projected to achieve an 8.13% increase in earnings and a substantial 9.67% growth in revenue. For the quarter, Amazon’s revenue is estimated between $159-$164 billion, driven by its Prime Day sales.
Wall Street analysts show strong confidence in these companies, with Microsoft having a price target average of $552.35 and Amazon at $254.38. Meta’s price target averages $756.13. All four companies are strategically investing in AI and cloud computing infrastructure, positioning themselves for continued growth amidst economic uncertainties.
