Okay folks, so tomorrow is going to be one of the biggest days of the market so far. This year you've got Apple Amazon and meta reporting earnings and in today's video I'm going to go through what analysts are expecting here and and what you need to be looking for. Big Tech Also saw some pulling back today. We got earnings from Alphabet Microsoft and other players yesterday and we need to discuss some trends that we are seeing with these earnings reports and what you need to know to be informed and and some opportunities that you might want to take advantage of.

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Coupon code Hello 2024 for 50% off. Okay, so Apple's reporting tomorrow After closing of The Magnificent Seven stocks, it's been one of the slower ones stock performance-wise And as Apple prepares to release their Q1 2024 Financial results, the general expectation is that Apple will report substantial sales booed by the high selling holiday season. But at the same time, there's some big worries over demand for the iPhone, which is still around 50% of Apple's net sales. There's concerns over operated margin and Q1 guidance, but go ahead and give us the numbers.

Charlie Charlito While going into earnings analysts, were expecting an average of 2.1 earnings per share. with the low estimate at 2.02 and the high estimate at 2.16 You got a pretty small spread here, which means there's a big consensus. There's a very, very strong consensus. There's a pretty small spread here between highs and lows, which means there's a decent consensus.

Analysts have an idea of where they think earnings are going to be and there's not a lot of disagreement. And actually, if you look at the EPS revisions, you've had one revision up in the last seven days and five revisions up in the last 30 days and only one revision down. meaning analysts and markets have gotten more and more bullish and expectations are high. But there's also a pretty strong consensus.

Now, if you want to know how Apple is going to react on earnings, look at how Alphabet Google reacted yesterday. Alphabet actually beat on earnings expectations yesterday a 3.1% surprise. Markets were expecting 1.59 and they reported 1.64 But the reason that Alphabet still got beat down fairly aggressively today was because one of their segments at Revenue performed ever so slightly worse than markets had expected 65.5 billion versus 65.8 billion expected. But in terms of other segments, I mean they beat on cloud.

they beat on earnings. Overall, they beat on Revenue. Overall, pretty solid report, and this is just one of those things that you have to take note of in a market where valuations have climbed aggressively. Well, if any small segment misses just a little bit, it's very, very easy for things to sell off fast.

That doesn't mean the overall momentum is now gone, it just means that for a few days after that, earnings if they miss, you could see a nice derailing. So with Apple heading into earnings tomorrow, it has a pretty high bar to meet. And even if they do meet that bar, perhaps there's some segments that freak out investors specifically. Maybe that iPhone segment let's get into Meta Meta has been sucking in a ton of money from everywhere, and it's just been on an insane, insane turnaround since lows in late 2022, going from around the high 80s to now over 400 bucks.

The funny thing is, analysts don't really seem to know what to expect heading into earnings. There's a pretty big spread of estimates for earnings per share. The low estimate is at 4.37 and the high estimate is at 5.63 But markets have historically been pretty damn bad at predicting Meta's earnings I mean Q4 2022. They missed the mark by negative 20.7% then 88.4% the next quarter 2.4% Not too bad actually for Q2.

But then Q3 We are talking about Meta surprising by 20.8% Now, when analysts are getting surprised this aggressively, that just simply means that analysts don't know what the heck they're talking about or even what they're looking at. And that sets you up for some really, really crazy surprises every every single earnings report with a lot of Divergence in estimates. Well, that means that there's a lot of people that are going to be surprised no matter what happens. Now, what we do know going into Meta Earnings is that Meta has done a very, very good job at Cost cutting and focusing, refocusing rather on operational efficiency and doing a better job of more efficiently shifting resources to their most lucrative segments.

But of course, Meta's core ad business is about 95% of their business. So when you're looking at that and then you look at Google which reported a little bit slower than expected results for its ad business. Maybe that's a little bit worrisome for Meta, we'll see, but I have a feeling that Meta is going to save itself with its guidance and of course its cost cutting measures. Okay, what about Amazon Well, Amazon is one of the ones that hasn't yet gotten to all-time highs.

Amazon's actually got a pretty big Divergence in estimates as well. The high estimate is at 1.03 and the low is at 0.57 averaging out at 0.8 Amazon's another one where you get really, really big surprises on earnings. you're talking plus 50% or more. These numbers actually make Meta look like Child's Play Several key areas is in focus for this earnings report: Amazon Web services AWS and its advertising segment are particularly under the spotlight given their potential impact on Amazon's overall Revenue growth.

Additionally, advancements in generative AI highlighted at the AWS Invest conference are anticipated to play a significant role in the company's future strategies. And of course, everybody's on AI right now. So if Amazon starts really talking the game up with AI, you can see a lot of people capitalize into it. Investors are also going to be looking for operational efficiency Improvement such as increased fulfillment utilization and a mix shift to higher margin advertising Revenue that's expected to boost operating margin expansion.

Okay, now I Want to go through some of the earnings and the numbers that we've already gotten? We'll talk. Microsoft The soft of Micro Msft gave back some today, but I Don't think markets were really disappointed with Microsoft Markets are happy on Q2 earnings on AI and the cloud segment strength and overall I mean they surprised 5.8% to the upside on EPS about a point and a half On Revenue Sometimes you just simply get sell-offs when other big Tech plays get deallocated from and that's a exactly what we saw today: Microsoft Just being taken down by the other players. When markets start going back upward, Msft will see its momentum continue. Okay now overall Market situation.

So right now we are in a market that is running largely due to the Magnificent Seven stocks, right? They account for some 29% of the S&P 500's market value, And in fact, not only are they far far far outperforming the rest of the market in stock performance, but they are also the only segment of the market that is really earning more and more net income in today's environment. A lot of people don't realize this if you look at the Magn 7 net income Trend versus the other 493 stocks in the S&P 500. I mean it's a disaster, but now these companies are reporting and many are reporting far below Wall Street expectations. And quite frankly, I mean there's a lot of room for markets to retrace lower, at least for a little bit of time because a lot of these Magnificent Seven companies are seemingly meeting or just slightly under expectations, which could take some of the froth away from markets.

Obviously Tesla was one of the worst. You also have some disappointments on alphabet: Microsoft was kind of a meat. Apple probably isn't going to be super excited. We've already seen people trying to change the name of the Magnificent 7 to the Sexy Sixes.

Pretty soon. they're going to try to change it to the Fabulous 5 or the Fruitful Four, and depending on what they report tomorrow, it might soon narrow down to the Thrusty Three. Okay, let's go ahead and cap off the video with what the FED said today. So at the meeting today, the Federal Reserve decided to keep interest rate steady, maintaining the target range at 5.25% to 5.5% marking the fourth consecutive hold.

This decision reflects a cautious approach by the Fed. It seeks more confidence that inflation will continue to slow down and stabilize around its 2% Target Despite the halt in rate increases, the FED introduced some changes to its post meeting statement, suggesting a Nuance shift in its Outlook. The statement highlighted the balancing of risks to employment and inflation goals, but stop short of signaling imminent rate cuts. The FED emphasized that any any future adjustments to the interest rate target range would be predicated on gaining greater assurance that inflation is moving substantially towards the 2% goal.

Financial Market Analysts had had varied reactions to the Fed's announcement, noting the absence of explicit guidance on future rate. Cuts. Some viewed the Fed's updated language as a doish step, indicating that while the next move could be a rate cut, it is contigent upon further inflation data. Pretty much what we got today was we're going to wait and we're going to see things are staying the same.

We're probably going to be doing less Cuts than Market expected over the overall year of 2024, but right now nothing has really changed. Anyways, that caps off today's video. Make sure to hit that ravishing like button and subscribe if you found value in it. Make sure to take advantage of that 50% off sale on zip Trader Options expires tonight at midnight Coupon code: hello 2024 link: Down Below Have a good one folks, we'll see you in the next video.