Earnings Season Insights: AI Investments and Market Trends

Earnings Season Mini-Preview

Kicking Off Q2 2024 Earnings Season

Welcome to Market Maverick’s mini-preview of the Q2 2024 earnings season! The year has been phenomenal for the stock market, with the Nasdaq 100 and big tech stocks leading the charge. AI investments have skyrocketed, yet questions about their long-term sustainability remain. Our portfolio remains focused on long-term value rather than short-term gains.

Key Themes to Watch:

Retail Sector: We’re seeing mixed signals. While some retailers are experiencing declines, giants like Walmart continue to thrive.

Jobs Market: A noticeable trend is the shift from full-time to part-time employment, which may indicate broader economic shifts.

Inflation and Cost of Goods Sold (COGS): High but fluctuating inflation impacts both consumer and business spending patterns.

Detailed Earnings Previews:

Retail Sector:

• Walmart (WMT): Expected to show strong performance due to increased e-commerce traffic and high-income shopper influx. Look for insights on their expansion strategies and cost management.

• Amazon (AMZN): With its dominant market position, Amazon’s earnings will reflect consumer spending trends and logistics efficiency. Pay attention to updates on AWS growth and AI integration.

Big Banks:

• JPMorgan Chase (JPM): As the largest U.S. bank, their earnings will offer a snapshot of the overall banking sector. Key metrics to watch include net interest margin and loan growth.

• Goldman Sachs (GS): Investment banking and trading revenues will be in focus. Look for commentary on M&A activity and their strategic direction amidst economic uncertainties.

Big Tech:

• Apple (AAPL): With its massive global footprint, Apple’s earnings will highlight consumer electronics demand and innovation in new product lines. Services revenue growth will be critical.

• Microsoft (MSFT): Cloud computing and AI will be the focal points. Azure’s performance and advancements in AI capabilities will be closely watched.

Disclaimer: This information is for educational purposes only and should not be considered financial advice.