Wall Street is getting ready for the earnings season, and key tech companies Alphabet (GOOGL), Amazon (AMZN), and Apple (AAPL) are showing steady stock performance as investors wait.
Recently, Alphabet reported strong first-quarter results with revenues of $90.2 billion, which is a 12% increase from last year. This growth comes from increases in Google Search, YouTube ads, and a 28% rise in Google Cloud.
Their earnings per share (EPS) grew by 49% to $2.81, beating expectations. As a result, Alphabet announced a 5% dividend increase and a $70 billion share buyback, boosting investor confidence ahead of the next quarter.
Amazon will share its Q1 earnings on May 1, with estimates predicting an EPS of $1.36 on revenue of $155.1 billion. This reflects good growth from Amazon Web Services, despite facing $2 billion in currency losses.
Historically, Amazon’s stock has been volatile around earnings, with 60% of its past reports leading to negative returns in one day. Investors are taking this into account.
Apple, also reporting on May 1, expects modest EPS growth of 4.6% year-over-year, reaching $1.60 per share for its fiscal Q2 2025. In the previous quarter, Apple exceeded expectations due to strong performance in its Services segment and steady iPhone sales despite economic challenges. Analysts expect continued growth, forecasting an EPS of $7.22 for the full year and $8.03 in the following year.
As these earnings reports approach, shares of these tech companies have stayed mostly stable. This stability shows a balance between optimism about innovation and caution regarding economic issues like tariffs and inflation.
Investors are paying close attention to overall numbers and guidance on AI investments, supply chain issues, and consumer demand trends that will affect the tech sector’s future.
In summary, Alphabet’s strong Q1 results create a positive outlook, while Amazon and Apple will face important earnings tests that could impact the tech sector. Market participants expect possible volatility but remain focused on long-term growth fueled by AI, cloud computing, and consumer technology innovation.