Investors will get a sense of how some of the biggest tech companies in the world fared during the third quarter when
Google’s parent company Alphabet, and
all report earnings this coming week.
All five tech mega caps have far outpaced the
this year. Amazon (ticker: AMZN) and Apple’s (AAPL) performance year-to-date has been particularly noteworthy, with their shares gaining over 70% and just under 60%, respectively.
Microsoft (MSFT) shares hit a record in September, and investors expect more good news Tuesday. Revenue is expected to rise 8% over last year’s number, just shy of the record the company set last quarter.
The raft of earnings comes as large technology platform companies have come under increased scrutiny from regulators and politicians.
The Department of Justice filed an antitrust suit against Alphabet last week after the House antitrust subcommittee released a harsh report calling out Google and Facebook (FB) as monopolies. On Wednesday, the CEOs of Alphabet (GOOGL), Facebook, and
(TWTR) will testify before a Senate committee on legal protections afforded platform companies.
Investors have been relatively sanguine in response to growing scrutiny from Washington. For example, Alphabet stock has risen 10% since the subcommittee’s report, despite the subsequent DOJ lawsuit. As Barron’s Eric Savitz notes, these massive companies will likely emerge from the pandemic stronger—and more profitable—than ever.
Write to Ben Walsh at firstname.lastname@example.org