This week is a big earnings week for the tech industry, and today's video focuses on three companies reporting this week and what investors should watch. The three companies are Amazon (AMZN 1.67%), Meta Platforms (META 0.58%), and Intel (INTC 0.32%). Each company brings different insights into the trends in the consumer market. Here are some highlights.
- Meta Platforms is expected to release earnings on Wednesday, April 27, after the market closes. During its last earnings call, Meta saw a negative impact on its advertising revenue due to numerous factors. One of those factors was Apple's iOS changes, and investors should listen closely to see if any improvements have been made to Meta's advertising solutions. Another subject to watch is the expenses being used by Meta's Reality Labs segment as the company continues to push into the virtual reality market.
- Amazon is expected to release earnings on Thursday, April 28, after the market closes. Amazon is an exciting company with a high-revenue but low-margin e-commerce business and a low-revenue but high-margin cloud computing business. Investors should make sure not to be blinded by revenue numbers alone. Since the e-commerce business is over 70% of total revenue, it can skew revenue results. Instead, investors should take a closer look at margins and the growth of its cloud computing business.
- Intel is also expected to release earnings on Thursday, April 28, after the market closes. We have seen numerous semiconductor companies report earnings, but this is the first one that depends heavily on the consumer market. Intel has announced a strong roadmap and new products for this year alone. Investors would want to ensure that the schedule has not shifted due to supply chain issues.
*Stock prices used were the market prices of April 25, 2022. The video was published on April 25, 2022.