That is the most important week of earnings season, with greater than a 3rd of S&P 500 corporations reporting, together with 5 of the “Magnificent 7” shares.
After a blockbuster rally within the first half of the 12 months, huge tech shares took a breather within the third quarter however at the moment are main the market once more. The Nasdaq Composite posted a brand new all-time excessive on Friday, its first since July.
The group is anticipated to report a +16.9% enhance in Q3 earnings relative to the identical interval final 12 months, alongside a +13.3% rise in revenues, in line with Zacks Earnings Developments. These shares have proven divergent efficiency in 2024, with NVIDIA NVDA and Meta META main the pack and Tesla TSLA lagging far behind.
Microsoft, MSFT, Alphabet GOOG, Amazon AMZN and Meta elevated their capital spending to $106.2 billion throughout the first half of this 12 months, up 49% from the identical interval a 12 months in the past, per WSJ.
They don’t seem to be anticipated to decelerate on spending because the AI race heats up. Nonetheless, traders are intently watching to see if earnings progress will justify this vital capital outlay on AI.
NVIDIA will report its earnings subsequent month, however huge tech outcomes this week may drive its shares greater since a good portion of capital spending is directed towards its AI chips.
The Invesco NASDAQ 100 ETF QQQM, a less expensive model of the favored QQQ ETF QQQ, presents the most effective methods to achieve publicity to mega-cap tech giants. The Roundhill Magnificent Seven ETF MAGS supplies equal-weighted publicity to the “Magnificent 7.”
Single-stock ETFs just like the GraniteShares 2x Lengthy NVDA Each day ETF NVDL might be successfully used as short-term tactical buying and selling instruments by high-conviction merchants, particularly since these shares may see huge strikes this week. Nonetheless, traders ought to do not forget that these merchandise aren’t meant for buy-and-hold investing.
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Alphabet Inc. (GOOG) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
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