Magnificent Seven earnings preview

Commentary from Lale Akoner, global market analyst at eToro, discussing upcoming earnings from Alphabet, Amazon and Meta, three key members of the Magnificent Seven.

With investor focus firmly on how big tech is balancing strong current performance with continued investment in AI and infrastructure, these results will be closely watched for signals on growth, profitability and the pace of innovation across the sector.

Alphabet earnings preview

“Alphabet heads into its April 29 earnings report with strong momentum. We expect a solid first quarter, supported by resilient demand in Google Search, but the bigger question is whether AI is starting to give the company a real edge over competitors.

Search continues to do the heavy lifting, with advertising demand holding up better than many expected. That stability is important, especially in a market that quickly reacts to any signs of weakness. At the same time, Cloud is becoming a much bigger part of the story, with growth increasingly driven by demand for AI and computing power rather than just general digital services.”

“That said, there are some softer spots. YouTube advertising slowed slightly towards the end of the quarter, but this looks more like a temporary dip than a longer-term issue, especially with strong content and partnerships supporting the platform.”

“Overall, investors will be looking for confirmation that Alphabet can maintain its growth momentum, particularly in cloud, while continuing to capitalise on AI opportunities across its platforms.”

Amazon earnings preview

“Amazon is heading into its latest earnings with strong momentum, but the real question is how much the company is willing to spend to stay ahead. Amazon’s core business remains resilient, benefiting from strong online shopping demand, faster delivery options, and growing interest in its advertising business. These areas are helping improve profitability, even as costs such as shipping continue to rise.”

“The larger focus for investors is Amazon’s cloud division, which powers much of the internet behind the scenes. Growth here is expected to remain strong, supported by major long-term partnerships and rising demand for digital services.”

“At the same time, Amazon is also ramping up investment, particularly in cloud infrastructure and AI. While this higher spending could put pressure on near-term profits, it reflects the company’s determination to stay ahead in a competitive market.”

“The broader picture is one of balance: strong current performance paired with heavy investment in the future. Investors will be watching closely to see how quickly those investments translate into earnings growth.”

Meta earnings preview

“Meta’s AI push is starting to show up where it matters most: revenue. Early signs suggest advertisers are getting stronger returns on Meta’s platforms, with spending growth holding steady and even picking up slightly, outstripping expectations of a slowdown. That is an important signal for investors, it suggests tools like Advantage+ are making ad campaigns more effective through smarter targeting and greater automation.”

“At the same time, Meta is doubling down on its longer-term AI ambitions. Its new “Muse Spark” model is designed to power everything from smarter ads to shopping, health insights, and even its Ray-Ban smart glasses. The goal is to keep users engaged for longer, making interactions more useful and monetisable.”

“AI investment is expensive, and investors will want reassurance that spending stays under control, but management has shown in the past that it can tighten expenses when needed. For retail investors, the story is becoming clearer, AI is already feeding growth, with even bigger potential upside ahead.”