Daniel Newman, CEO, Futurum Group, breaks down what investors should watch for ahead of next week’s big tech earnings.
Transcript:
CAROLINE WOODS: OK, well, speaking of Apple, Apple’s next on tap. As we think about next week’s earnings we have Meta. Apple, Microsoft, Amazon. What can we expect to get us prepared for those?
DANIEL NEWMAN: Well Apple I think we’re going to see it’s going to be pretty dry. I’m hoping we’re not just hearing about buybacks. They’ve had some big changes in management, CEO stepping down. We’ve had some of their top AI talent poached. People are going to be looking at that handset number. They’re going to be looking at impact from China. You know we expect it to be pretty flattish. So we’re not super excited about Apple. They’re number 6 on my power rankings for the Mag Seven right now. Only Tesla sits below because at least Apple still has the cash machine. It’s just it’s really struggling with innovation. Microsoft has been a juggernaut been very consistent with their Azure business. I am a little worried about its dependence on OpenAI because how fractured that relationship clearly is. But it’s all about the Azure number with Microsoft. Azure growing in that Google number is going to be the comparison point. Are they growing as fast as Google or slower than Google? You know Oracle’s been a bit of the dark horse here because they’ve had this massive growth number. And of course that’s partially powered by OpenAI. So there’s all these things happening. And then Amazon AWS, that’s where they make all their money. Now their ads business has been impressive. It’ll be another one to compare against the YouTube and the Google click ad business. But we think that Amazon’s thesis is intact. We think they’ve made good progress in AI. We expect that their growth will be the slower end, but they are still dealing with law of large numbers, Caroline. They are the largest cloud by a long margin. And so their growth has gone into the mid to high teens. So Amazon solid, Apple we continue to be worried about. But we know they know how to operate and do business. That’s Tim Cook’s special. So I don’t think the earnings will be bad. I just think people continue to be a little bearish on the narrative. And then Microsoft I think will do the business. They they’ve done it consistently. I don’t see any reason to be too concerned here.
Watch Daniel’s full interview here:
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