Apple and Palantir report after the close on Monday, opening a week of technology earnings. Sharp selling in Intel and Amazon this week shows that a beat on earnings does not guarantee a higher share price. Investors will focus on outlook, margins and spending plans.
Apple reports after Monday's close, alongside Palantir and Roku. The results arrive after a week in which investors saw how quickly buyers can turn into sellers when results or expectations disappoint.
Intel and Amazon set a cautious tone
Intel posted adjusted earnings of $0.52 per share against a $0.41 estimate, but revenue of $16.50 billion missed the $16.60 billion forecast. Shares were down approximately 25.7% in Friday morning trading.
Amazon also came under pressure. It fell approximately 6.3% in Thursday's after-hours trading before bouncing back, and its report kept attention on growth, investment spending and the cash flow left for shareholders.
What Apple and Palantir must show
Apple will put iPhone demand, services growth, China performance and the holiday-quarter outlook in focus, according to investingLive. Investors will also look for evidence that AI features give customers a compelling reason to upgrade their devices.
Palantir faces a different test: whether commercial and government demand can support continued rapid growth while it maintains profitability. Forward guidance will be particularly important in deciding whether the results give buyers enough reason to step in.
The rest of the week
Next, AMD, Super Micro Computer and Arista Networks report on Tuesday. Uber, Qualcomm, Arm and AppLovin follow on Wednesday, adding to the technology focus. AMD's data-center performance and AI accelerator outlook will be key barometers for chip demand.
The central question for the AI trade is whether demand is strong enough to justify the spending and translate into stronger earnings and cash flow.
For traders, the price reaction remains the barometer. A failed rally at resistance keeps sellers in control, while a recovery above broken technical levels gives buyers something to build on.
Source: investingLive
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