This week is expected to be the largest and most important week of the third quarter U.S. earnings season with many heavyweight mega caps scheduled to report.

The Nasdaq index, which represents many of the top technology companies, is down -31% since the beginning of 2022 trading at calendar year lows after failing to stage a broader market rally from June to August.

Analysts and investors across the market will have low expectations from internet companies as they will likely provide gloomy outlook commentary given the continued deteriorating macroeconomic conditions.

Continued themes of cost inflation and margin deterioration, coupled with rising costs of capital are likely to be apparent across the board.

In this report, we provide a brief insight into some of the companies reporting and key items to look out for from each.

Click the stock ticker links to find out more about the analysis with quant metrics from the Fintel platform.

Tuesday, October 25th:

GOOGL – Alphabet Inc

Internet conglomerate Alphabet is expected to marginally grow revenue over the quarter to $71 billion and EPS to $1.27. The market is expecting Youtube will likely be impacted by the ongoing pullback in brand spend but offset by strong political advertising spend ahead of midterm elections.

MSFT – Microsoft Corp 

Microsoft  is expected to generate first quarter revenue of around $49.5 billion for the quarter and EPS of $2.32. Azure growth will be a key focus of the result with the company recently noting a slight moderation in consumption and indicated capacity constraints in certain geographies.

SPOT – Spotify Technology
Music streaming service Spotify is expected to report quarterly sales of $2.95 billion with an EPS loss of around -85 cents. The stock has been a worse performer over the year losing -64% of its value in 2022. The market is expecting another quarter with double digit subscriber growth and also advertising spend driven by better engagement.

V – Visa Inc

Payments system provider Visa will report Q4 results on Tuesday and is expected to generate quarterly revenue of around $7.5 billion and EPS of $1.87. The stock has performed well this year only trading down -14% as transaction volumes have held resilient. The market remains concerned about FX headwind risk with USD strength and will be keeping a close eye on macroeconomic impacts on spending.

TWTR – Twitter Inc

Twitter is expected to report EPS of 1 cent per share and about $1.25 billion in sales. The company remains under the spotlight with the Elon Musk takeover nearing an expected completion. The stock has remained strong rallying 17% since the beginning of 2022 towards the takeover offer valuation.

Wednesday, October 26th:

META – Meta Platforms (Facebook)

Meta will update investors after the market on Wednesday and is expected to generate sales of $27.5 billion and EPS of around $1.90. The market will eagerly be looking to see if META can return to revenue growth after users and engagement stagnated coming out of the pandemic.

NOW – Service Now

American software company Service Now is expected to report sales of $1.85 billion and EPS of $1.85. The stock has underperformed US equity market average returns losing -43% over 2022.

UPWK – Upwork Inc

Freelance platform Upwork has traded -63% lower over 2022 as the company was trading on very high price-to-sales multiples while continuing to generate losses. During September, management reported third quarter guidance to generate $156-158 million in revenue and EPS of negative -6 to -8 cents. The market will be looking to see how the macro environment is further slowing down hiring activity and what updates management will provide on their strategic initiatives.

Thursday, October 27th:

AAPL – Apple Inc

Apple will report fourth quarter results on Thursday to investors with the street expecting $88.8 billion in group revenue and EPS of $1.27. Investors remain wary that Apple’s fundamentals will not be immune to the worsening consumer spending trends, however slower growth is already being anticipated by the market. Recent media coverage suggested Apple had already cut its iPhone orders which caused the stock to fall 20%  from its August peak.

INTC – Intel Corp

The street expects Intel to report third quarter sales of $15.4 billion and EPS of 34 cents. Consumer electronics are expected to be weak but offset by stability in the automotive/industrial segments.

AMZN – Amazon 

Amazon will report earnings after market close with the street expecting sales of around $127 billion and EPS of 22 cents. Investors will be looking to see if management provides further commentary on dampening consumer spending and how the company is positioning itself for the upcoming holiday season. Third quarter results will be aided by strong sales from Prime Day during the quarter.

SHOP – Shopify

Canadian eCommerce platform giant Shopify is expected to generate sales of $1.35 billion and an EPS loss of 7 cents per share. After a MEGA 1000% rally from 2019-2022, the stock came crashing back down to reality, losing more than 80% of its gains and trading back at pre-Covid levels. Investors will be looking to see whether the tough macro environment is having an impact on growth and customer spend.

This article originally appeared on Fintel

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