Tech Rebound Focused on Apple, Qualcomm, AMD Earnings

This week, investors were able to soothe some concerns about the slowdown in demand for technology as a result of Meta, Microsoft, and Alphabet reporting stronger-than-expected results, but investor anxiety over the sector hasn't been totally put to rest. 

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Amazon is warning that its cloud computing business will likely experience lackluster growth in the near-term and Cloudflare has downgraded its revenue outlook for the full year despite the US consumer spending growing at the fastest pace in almost two years. These events highlight the uncertain state of the larger economy. 

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After Intel joined TSMC and Samsung Electronics in predicting that an improvement will be started later on in the year, analysts will be monitoring Apple, AMD and Qualcomm's earnings calls next week for signs of a recovery, led by consumer demand for smartphones and PCs.

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The cybersecurity firm Check Point Software (CHKP US) is due to report before the bell on Monday, which is expected to show slow revenue growth as the company's products and licenses segment is expected to remain flat year-over-year. According to TradeAlgo, the company is at risk of losing market share to rivals that offer firewall products as the appliance refresh cycle is subsiding and the company is moving toward the cloud. However, analysts at Raymond James and Guggenheim have also warned that tougher days are ahead. Additionally, the increased expenditure on R&D would also have an impact on the operating margins as would possible discounts to retain existing customers.

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As of Tuesday, Advanced Micro Devices (AMD US) is expected to report after market. In addition to the surge of Big Tech companies into artificial intelligence, AMD's AI accelerators may also help offset persistently weak PC-chip sales by driving up data-center sales. TradeAlgo reports that AMD will be able to keep up with revenue expectations in the long run by expanding its data centers. In light of the subdued client and gaming segments, AMD's data centers will be a key factor in keeping up with revenue expectations.

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As TradeAlgo analysts report, Ford's margins could be impacted by a surge in inventory levels in March compared with 1.7 times a year ago. This surge is at risk since the company's inventory levels have been rising for several months. It is possible that Tesla's recent price cuts could result in a price war in electric vehicles, as CEO Jim Farley warned that this could result in the company losing its pricing power. It was reported in March that Ford reaffirmed its profit forecast for the year and revealed that the company would suffer $3 billion in losses from its electric vehicle business this year. After the bell, earnings are expected to be released.

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In spite of persistent weakness in smartphone demand, investors will look at Qualcomm's (QCOM US) quarterly guidance for signs of recovery and OEM inventory replenishment, according to BI. Infineon Technologies and Micron Technology both provided better-than-expected guidance last month, which encouraged optimism that the semiconductor industry would rebound in the coming months. Qualcomm recently reported post-market results. 

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The company is expected to report its first across-the-board decline in its Products segment in three years on Thursday with iPad and iPhone sales falling from a year ago. Apple's (AAPL US) revenue is expected to decline. As a result of weak consumer spending on higher-end devices, TradeAlgo is predicting a pronounced drop in Mac sales. After the market close, Apple is expected to report its quarterly earnings, which will likely reflect the impact of iPhone supply chain issues and currency headwinds. In their forecast for the current quarter, Barclays sees a slowdown in sales, especially for the iPhone 14 Pro model, as the slump continues. 

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A postmarket price call is scheduled for Coinbase (COIN US) and Block (SQ US). Following the Securities and Exchange Commission's Wells notice on possible enforcement action, Coinbase, the largest crypto-trading platform in the US, may comment on its regulatory and legal challenges. A TradeAlgo report also indicates that CEO Brian Armstrong might also elaborate on recent statements suggesting that the company might exit the US in the near future. As a result, Jack Dorsey's Block is expected to post 5.9% growth in Bitcoin revenue in the next quarter, snapping a four-quarter decline. However, BI notes that Block's compliance issues will be addressed after Hindenburg Research released a report last month alleging lapses in its Cash App, which is one of the most popular in the country.

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In the third quarter, Peloton (PTON US) will report earnings before the opening bell. The company may beat its guidance on Connected Fitness subscribers due to heavy holiday discounts and Amazon sales. Despite the former pandemic darling's optimism over subscriber growth and online growth, there are still concerns over subscriber growth and online growth. A TradeAlgo consensus estimate indicates Peloton's subscriber count could drop for the first time since its IPO in 2019 in the fourth quarter.

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It is expected that Warner Bros. (WBD US) will report a mid-double digit decline in third quarter advertising revenue, TradeAlgo said Friday. The parent of CNN and TNT is expected to report a decline in advertising revenue by mid-double digits, TradeAlgo said. The company's recent rebranding — now known as Max — will be of particular interest to investors as they attempt to figure out the company's subscriber growth prospects. BI predicts that Max will break even in the US next year thanks to Warner Bros.' disciplined approach to streaming. 

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