4 Big Tech Stocks to Watch on Earnings 

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Big Tech stocks - 4 Big Tech Stocks to Watch on Earnings 

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U.S. equities continue to march higher, with the Dow Jones Industrial Average continuing to hold above the 27,000 level, despite taking a dive into the close.

Investors have a lot to chew on, with the second-quarter earnings season rolling on ahead of the July Federal Reserve policy decision — where interest rates are expected to be cut by 0.5% according to the futures market.

Sure, there are many reasons to still feel nervous including the ongoing U.S.-China trade spat and simmering tensions with Iran in the Persian Gulf. But for now, the focus is on how many companies — especially in the technology sector — are continuing to deliver solid results. Well, for the most part.

A number of stocks in the sector are making big moves after reporting numbers. Here are four worth a look:

Big Tech Stocks to Watch: Microsoft (MSFT)


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Microsoft (NASDAQ:MSFT) shares tested to a new high above the $140-a-share level today after reporting a top- and bottom-line beat as its cloud services business continues to build momentum.

Revenue grew 12% to nearly $34 billion as grows margins expanded to a whopping 69.1%. Breaking it down by sector, productivity and business processes grew 17% in constant currency while intelligent cloud sales grew 21% from last year.

While not as snazzy as its younger competitors, Microsoft’s steady performance has earned it the position of the world’s largest publicly traded company with a $1.07 trillion valuation and a price-to-earnings (P/E) multiple that still seems reasonable.

EBay (EBAY)


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EBay (NASDAQ:EBAY) shares are returning to levels last seen in early 2018 as the bulls attempt a breakout from a sideways pattern going back to February.

This after the company reported results on July 17 with growth tepid but profitability strong. Earnings have beat estimates for five straight quarters now as the company dials back on promotional activity and instead focuses on the user experience and new features.

The company will next report results on Oct. 29 after the close. Analysts are looking for earnings of 64 cents per share on revenues of $2.7 billion.

Investors and analysis are looking ahead to the planned spinoff of its StubHub and Classified businesses, which will streamline the company around its high margin areas.

International Business Machines Corp (IBM)


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IBM (NYSE:IBM) shares are pushing into clean air, rising up and over its April high to return to levels not seen since early 2018.

This after the company reported results on July 17, with earnings of $3.17 beating estimates by nine cents on a 4% drop in revenues. While revenue growth was soft, forward guidance was strong and margins improved slightly.

The company will next report results on Oct. 16 after the close. Analysts are looking for earnings of $3.48 per share on revenues of $18.2 billion. Keep an eye on updated guidance due Aug. 2 that will include recently acquired Red Hat.

Netflix (NFLX)


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As the streaming wars intensify with the likes of Apple (NASDAQ:AAPL) and Disney (NYSE:DIS) wading in, Netflix (NASDAQ:NFLX) shares are getting slammed hard after the company reported a drop in subscriber count.

The stock fell below its 200-day moving average to exit a multi-month trading range going back to January, which marked the second phase of a long inability to push much past the $400-a-share level since shares hit a record last summer.

Only 2.7 million subscribers were added last quarter on a net basis, well below the five million that were forecast. Financial numbers largely met expectations, however, as attention remains on its cash burn rate.

Notably, the number of U.S. subscribers fell by 130,000 versus guidance for a 300,000 gain — the first U.S. net subscriber loss since the streaming business was separated from its DVD-by-mail business in 2011.

As of this writing, William Roth did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/07/4-big-tech-stocks-to-watch-on-earnings/.

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