Oct 25, 2021 - Economy

Wall Street readies for Big Tech earnings reports

Illustration of suited hand holding binoculars with negative and positive stock arrows

Illustration: Eniola Odetunde/Axios

It’s all about Big Tech. The five largest companies in the S&P 500 — Apple, Microsoft, Amazon, Facebook, Alphabet — are set to report this week.

Why it matters: These heavyweights will overshadow most of the other 150+ reporting companies, in what will be the busiest earnings week of the quarter.

  • We should hear more about labor and supply chain issues from Amazon, and how Apple projects the chip shortage to affect its production, Franklin Equity Group's Grant Bowers says.

Context: Snap set the tone for tech volatility last week with its forecast that supply chain issues would crimp digital advertisers’ spending — and that Apple’s latest iOS privacy updates were also disrupting the ad business.

  • Snap’s stock sank 25% on the news, and Alphabet, Facebook and Twitter (which also reports this week) were down as well.

Meanwhile, a new round of Facebook whistleblower documents isn’t going to make the social media giant’s investor call any easier.

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