Amazon, Intel, Microsoft and Alphabet
Four high profile companies will be announcing earnings after the close - Amazon, Intel, Microsoft and Alphabet. The impact on the overall stock market can be great depending upon the reaction.
Amazon:
For the first quarter, Amazon is expected to earn $1.08 per share on revenue of $35.3 billion, up 21% from Q1 2016.
What to watch? Does Amazon Web Services revenue growth slow? Last quarter growth slowed to 47% from 55%. Sales in AWS are expected to rise to 3.65B. Can growth get back above 50%? It is hard just because of increased competition and the larger numbers but if it does, that will be good news for the stock. Amazon is trading at record levels and is up $10 today (+1.1%) to $919.35.
Alphabet:
Analysts expect Alphabet to report GAAP earnings of around $7.40 on revenue of 19.76B (exluding traffic acquisition costs). Traders will be watching the cloud business as well as whether YouTube ad-spending headwinds depressed sales growth.
Microsoft:
Analysts are expecting adjusted earnings of $0.70 on revenue of $23.65 billion. This is the 1st quarter that Microsoft will record full quarter revenues from their LinkedIn acquisition. Traders will be watching Office 365 momentum and the momentum from Azure, the Microsoft cloud service. In the fiscal Q2 the revenue grew by 93% higher than AWS's growth of 47% but down from 116%. Microsoft is currently trading at $68.00. The all time high was reached $68.31 this week. Today the price is up $0.15 or 0.22%
Intel:
Intel is expected to earn $0.65 on revenues of 14.81B. Intel is trading at $37.24. The all 52 week high is $38.45 reached on January 27th. Today the shares are up +$0.31 or 0.83%
