Earnings season is in full swing this week as many tech companies begin to release their second-quarter results. The reports will provide important insight into how companies are faring amid a rebounding economy following widespread lockdowns last year.

This week's earnings reports feature a number of tech giants that could lead to big swings not only in their own stock prices but the market overall. Two that are worth watching are Facebook (NASDAQ:FB) and Amazon.com (NASDAQ:AMZN).

Here's a preview of what to look for when both of these technology juggernauts report their results.

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Social network Facebook is the first of these two companies to report earnings, with its earnings release scheduled for after market close today. 

Interestingly, the social network is up against an easy comparison. While engagement on Facebook's social platforms was high in the year-ago quarter, advertiser investment took a hit as many businesses faced near-term headwinds. The company's revenue growth rate in the second quarter of 2020, therefore, was just 11% -- down from 18% growth just three months earlier. 

Given both Facebook's recent momentum (48% revenue growth in the first quarter of 2021) and the company's easy year-ago comparison, it's not surprising that analysts expect exceptional growth from the tech giant in Q2. On average, analysts are projecting Facebook's revenue to grow about 60% year over year.


Unlike Facebook, Amazon is actually up against a tough comparison. This is because consumers ramped up their use of e-commerce during lockdowns. In the second quarter of 2020, the e-commerce and cloud-computing company's revenue increased 40% year over year -- an acceleration from 26% growth in the first quarter of 2020.

Up against such a tough comparison, analysts are modeling for a significant deceleration in Amazon's revenue growth rate in Q2 2021. The current consensus forecast calls for 29% growth, down from 44% growth in the first quarter of 2021. 

One key catalyst for Amazon's second quarter of 2021 is Prime Day. In 2020, the company's member-only shopping event 2020 didn't come until later in the year. Having a Prime Day quarter going up against a quarter without the shopping event should help Amazon's year-over-year comparison.

Amazon will report its second-quarter results after market close on July 29 -- 24 hours after Facebook.

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