Tesla (TSLA) and Alphabet (GOOGL) Earnings Expected to Lift Market This Week

Quick overview

Wall Street analysts increased price targets for Intel Corporation (INTC), Alphabet (GOOGL), and Tesla (TSLA) this week as big tech earnings are set to release within days.

The stock market lifted slightly in early trading on Monday after a bearish session on Friday. Iran and the United States continued to exchange strikes over the weekend, but the stock market showed indications of upward movement ahead of big technology stock earnings scheduled for this week.

Oil prices continued climbing, hitting $90 per barrel due to ongoing fighting in the Middle East. There is no indication that the conflict there will end soon, and oil shipments will likely remain at risk until the fighting stops again. The Nasdaq climbed 0.7% in early trading, while the Dow Jones added 0.2% and the S&P 500 gained 0.3%.

Semiconductor Stocks Down, Tech Stocks on the Rise

The tech market is split right now, with chips stocks far below their previous high levels from the early summer. However, IBM (IBM), Intel, Google, and Tesla are moving up as investors prepare for a strong earnings week. These stocks represent the biggest tech companies that are releasing quarterly earnings this week, and all four of them were upgraded by analysts who believe they will do better than previously expected in revenue and earnings per share.

Their performance this week could lift the tech market and the wider stock indices, helping to offset losses from the chip sector. Advanced Micro Devices (AMD), Broadcom (AVGO), and Taiwan Semiconductor Manufacturing (TSMC) all fell sharply last week, experiencing an especially difficult day on Friday as market sentiment plummeted. All week long, investors worried about profit margins and capex spending, and those problems were brought to the forefront with chip stock earnings over the past few months.

Shareholders are noticing just how much money these companies are pouring into capital expenditures in order to build up data centers and AI infrastructure and to buy high tech components that are incredibly expensive. As companies put billions into development and growth, they are losing their profit margins, and the biggest losses are taking place in the chip sector.

Wall Street anticipates that IBM will post earnings per share of around $3.02, which would be a nearly 8% increase year-over-year. Their revenue could grow by about 5% to $17.85 billion.

Tesla stock fell almost 22% from its highest point in the last year. Analysts at Wells Fargo expect that the company’s stock price will fall from $382 to $130 over the next 12 months. Tesla may be selling a lot of cars this quarter, but their profits per car are small compared to previous quarters.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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