Tech giants boost Capex again! What's the outlook for future stock prices?
[Guess and Win Prizes] Microsoft, Meta, Tesla, and Apple all release their earnings this week! Who will pass the AI test? Who will emerge as the top performer?
This week marks the 'Super Earnings Week' for the US stock market!On January 28, three tech giants Tesla, Microsoft, and Meta will release their earnings after the US market closes, followed by Apple on January 29 after the market close.The most critical theme of this earnings season is whether tech giants are starting to truly benefit from AI-related investments.By the end of 2025, the market had been concerned about whether large-scale capital expenditures directed towards data centers and other infrastructure would pay off, with such concerns having weighed on US tech stocks and other AI concept shares.
The divergence among individual stocks within the Mag 7 is becoming increasingly evident, as investors are transitioning from 'buying the bundle' to being more selective.Currently, $Meta Platforms (META.US)$ is facing serious risk of capital expenditure spiraling out of control, and once guidance exceeds expectations, its valuation will come under significant pressure; $Microsoft (MSFT.US)$is at the sweet spot of the 'compute arms race', with Goldman Sachs expecting Azure’s growth rate to return above 40%, making any pullback a buying opportunity.$Apple (AAPL.US)$ will once again demonstrate its iron grip over the supply chain,JPMorgan notes that even during a cycle of rising storage costs, Apple can still maintain its margins and exceed expectations driven by the iPhone 17 cycle;And$Tesla (TSLA.US)$ 's fundamentals have moved beyond car manufacturing,evolving into a game revolving around Elon Musk's business empire (SpaceX IPO) and the Robotaxi timeline.
So, will the giants' massive AI investments deliver tangible earnings growth? Will the future blueprint they've painted be backed by real performance? Whose earnings results will satisfy the market this time?
Now, it's time to show off the insight of fellow investors!Come join the interactive event with rewards and earn points!👇👇[Prize Activity]
🏆 Event One: The Oracle of the Investor Circle ✨
Choose the stock you think will have the highest increase on the first day after earnings release. Fellow investors who predict correctly will share the rewards.50,000 points!
(For example, if 100 fellow investors guess correctly, each person will receive 500 points; activity rewards will be distributed uniformly after the current earnings season ends!)
🏆 Event Two: The Insight Leader of the Investor Circle✨
Microsoft's cloud, Meta's bold bet, Tesla's hardcore dream, and Apple's super cycle – which one do you favor?
Quickly share your thoughts incomment sectionLeave your opinion (word count ≥ 30), original viewpoints that follow the rules will earn you66 points!Performance Sir will also select two high-quality comments from all posts and reward two fellow investors.Crown bull, one of the best!
![[Cheerlead]This week marks the 'Super Earnings Week' for the US stock market!On January 28, three tech giants—Tesla, Microsoft, and Meta—are set to report earnings after the US market closes, with Apple following on January 29 after the market close. The most critical theme of this earnings season is whether tech giants have started to truly benefit from AI-related investments.By late 2025, concerns had arisen over whether massive capital expenditures directed toward data centers and other infrastructure would pay off, weighing down major US tech stocks and other AI-related stocks.[Thinking Face] [Scowl]The divergence among the Mag 7 stocks has become increasingly evident, as investors are shifting from 'buying the bundle' to being more selective. Currently,$Meta Platforms (META.US)$are facing serious risks of capital expenditure spiraling out of control; if guidance exceeds expectations, valuations will come under significant pressure.$Microsoft (MSFT.US)$is at the sweet spot of the 'computing power arms race'Goldman Sachs expects Azure's growth rate to return above 40%, and any pullback is a buying opportunity.$Apple (AAPL.US)$ will once again demonstrate its iron grip on the supply chain,JPMorgan pointed out that even during a cycle of rising storage costs, Apple can still maintain its profit margins and exceed expectations driven by the iPhone 17 cycle;And$Tesla (TSLA.US)$ fundamentals have moved away from car manufacturing,evolving into a discussion about Musk's business...](https://nnqimage.futunn.com/sns_client_feed/999982/20260127/web-1769509439830-c9pYvOA7dA.png/big?area=2&is_public=true&imageMogr2/ignore-error/1/format/webp)
Although investors are no longer satisfied with the 'get-rich-quick from AI' empty promises,there remains a glimmer of optimism toward tech giants as their valuations have relatively retreated.Currently, the forward P/E ratio for the Mag 7 index is 29x, far below the over 40x highs seen earlier this decade. In comparison, $S&P 500 Index (.SPX.US)$ Tesla's forward P/E ratio is 22x, $NASDAQ 100 Index (.NDX.US)$ while Apple's is 25x.🔎Quick Overview of Key Highlights from the Big Four Earnings Reports
![[Cheerlead]This week marks the 'Super Earnings Week' for the US stock market!On January 28, three tech giants—Tesla, Microsoft, and Meta—are set to report earnings after the US market closes, with Apple following on January 29 after the market close. The most critical theme of this earnings season is whether tech giants have started to truly benefit from AI-related investments.By late 2025, concerns had arisen over whether massive capital expenditures directed toward data centers and other infrastructure would pay off, weighing down major US tech stocks and other AI-related stocks.[Thinking Face] [Scowl]The divergence among the Mag 7 stocks has become increasingly evident, as investors are shifting from 'buying the bundle' to being more selective. Currently,$Meta Platforms (META.US)$are facing serious risks of capital expenditure spiraling out of control; if guidance exceeds expectations, valuations will come under significant pressure.$Microsoft (MSFT.US)$is at the sweet spot of the 'computing power arms race'Goldman Sachs expects Azure's growth rate to return above 40%, and any pullback is a buying opportunity.$Apple (AAPL.US)$ will once again demonstrate its iron grip on the supply chain,JPMorgan pointed out that even during a cycle of rising storage costs, Apple can still maintain its profit margins and exceed expectations driven by the iPhone 17 cycle;And$Tesla (TSLA.US)$ fundamentals have moved away from car manufacturing,evolving into a discussion about Musk's business...](https://nnqimage.futunn.com/sns_client_feed/999982/20260127/web-1769509955245-QCils6ZHKI.jpeg/big?area=2&is_public=true&imageMogr2/ignore-error/1/format/webp)
💎The focus for Microsoft lies in the return on AI investments.As one of the clearest beneficiaries of the AI wave, market expectations for Microsoft are extremely high. The consensus forecast predicts quarterly revenue to exceed $80 billion, representing approximately 15% year-over-year growth. Over the past two years, Microsoft has invested nearly $100 billion in AI infrastructure, and the market is watching closely to see if these investments can translate into tangible profit growth. The growth rate of Azure cloud services is a key metric, with analysts expecting it to rebound to above 37%.
🎯The biggest question mark for Meta revolves around its capital expenditure guidance.Meta is in the midst of a more aggressive and expensive gamble; last October, Zuckerberg's announcement to increase AI investment caused the stock price to plummet. The market expects Meta's capital expenditure to reach $109-114 billion by 2026, and any guidance exceeding expectations could trigger significant stock price volatility. The massive capital spending is rapidly eroding profits.
🚙Tesla is caught between the harsh realities of the present and the vast potential of the future.Tesla has already released its vehicle delivery data, with the market expecting a 3.7% year-over-year decline in revenue. Short-term pressures on car sales and profit margins have been anticipated by the market. Stock performance will entirely depend on whether Musk can outline a clear and credible next milestone for AI, autonomous driving, and robotics during the earnings call.
📲 Apple remains the most stable among its peers.It is currently in a strong 'iPhone supercycle,' with analysts predicting Apple’s strongest revenue growth in four years. However, amidst competitors heavily discussing AI, if Apple fails to showcase a clear strategy and competitive edge in the generative AI era, any positive hardware sales figures may be offset by 'innovation anxiety.' Thus, Apple’s collaboration with Google Gemini has become a key highlight for its AI strategy.
Click to reserve:How to easily strategize during the super earnings week? 'Earnings Express' AI highlights key points in three steps to build an options strategy >>![[Cheerlead]This week marks the 'Super Earnings Week' for the US stock market!On January 28, three tech giants—Tesla, Microsoft, and Meta—are set to report earnings after the US market closes, with Apple following on January 29 after the market close. The most critical theme of this earnings season is whether tech giants have started to truly benefit from AI-related investments.By late 2025, concerns had arisen over whether massive capital expenditures directed toward data centers and other infrastructure would pay off, weighing down major US tech stocks and other AI-related stocks.[Thinking Face] [Scowl]The divergence among the Mag 7 stocks has become increasingly evident, as investors are shifting from 'buying the bundle' to being more selective. Currently,$Meta Platforms (META.US)$are facing serious risks of capital expenditure spiraling out of control; if guidance exceeds expectations, valuations will come under significant pressure.$Microsoft (MSFT.US)$is at the sweet spot of the 'computing power arms race'Goldman Sachs expects Azure's growth rate to return above 40%, and any pullback is a buying opportunity.$Apple (AAPL.US)$ will once again demonstrate its iron grip on the supply chain,JPMorgan pointed out that even during a cycle of rising storage costs, Apple can still maintain its profit margins and exceed expectations driven by the iPhone 17 cycle;And$Tesla (TSLA.US)$ fundamentals have moved away from car manufacturing,evolving into a discussion about Musk's business...](https://nnqimage.futunn.com/sns_client_feed/999982/20260127/web-1769510618422-ehtEXovXrJ.webp/big?area=2&is_public=true&imageMogr2/ignore-error/1/format/webp)
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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