CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Market Alert: Earnings Super Thursday

11:37 28 October 2020

Big Tech companies were drivers of this year's recovery rally on Wall Street. Facebook, Amazon, Apple and Alphabet account for around 20% of the S&P 500 and all four companies will report earnings on Thursday after the US session closes! Solid releases may help US stock market end a losing streak. On the other hand, lacklustre results may add more fuel to the ongoing sell-off.

Apple

Start investing today or test a free demo

Open account Try demo Download mobile app Download mobile app

Apple (AAPL.US) reported record results in the second quarter of 2020. However, earnings are expected to be lower in Q3 2020 while revenue growth is expected to stall on the back of weaker hardware sales. On the other hand, revenue from services is expected to post another quarter of growth as the company continues to diversify its business and put more emphasis on recurring revenue. Unexpected slowdown in this metric could hurt sentiment. Apple stock is trading nearly 60% year-to-date higher and 120% above low from March 2020.

Apple (AAPL.US) pulled back to the upward trendline after painting a higher high. Bulls may try to halt ongoing short-term correction and solid earnings report could see stock surge towards recent peak at $124. Source: xStation5

Amazon

Amazon (AMZN.US) benefited from strong e-commerce sales during the pandemic as well as higher demand for services of its cloud unit. Strong growth in both sales and earnings is expected this quarter so focus will be on the pace. Growth has been slowing in the AWS cloud segment since 2018. While this is a smaller business segment than e-commerce, it has higher profit margins. Companies hired thousands of additional workers to keep up with increased e-commerce demand therefore markets do not worry much about the performance of this unit. Amazon stock is trading around 80% higher year-to-date and over 100% above low from March 2020.

Amazon (AMZN.US) recovers after bears were unable to break below 100-session moving average (green line) and 50% retracement of the recent upward impulse. Upcoming report is likely to confirm strong e-commerce growth that remains key business for Amazon. However, cloud performance will also be on watch. Source: xStation5

Alphabet

Google, subsidiary of Alphabet (GOOGL.US and GOOGC.US), reported the first ad revenue drop in its two decade long existence in Q2 2020. However, analysts expect that Alphabet will report higher year-over-year revenue in Q3 2020 on the back of recovering ad spending and strong cloud revenue. Performance of the cloud segment will be on watch as Google is facing another antitrust case over its monopolistic position in the main business field and investors want to see revenue stream diversified further. Stock is trading almost 20% year-to-date and nearly 60% above low from March 2020.

Alphabet (GOOGC.US) trades in a steep upward channel. Stock pulled back along with the broad market recently but managed to regain ground. Resistance area at $1,630 is now in focus. Breaking above would pave the way for a test of the all-time highs above $1,700. Source: xStaiton5

Facebook

Facebook (FB.US) managed to avoid a drop in sales in Q2 2020. However, 10.7% YoY revenue growth was the slowest in over 3 years and the company said it expects Q3 revenue to be in-line with it. Market expects that company will report slightly lower earnings in the July-September period than a year ago. Focus as always will be on the number of active users, consensus estimate expects a 12.5% YoY increase, to 2.7 billion monthly active users. User growth accelerated in the first and second quarter of 2020. Facebook stock is trading around 40% year-to-date and over 100% above low from March 2020.

Facebook (FB.US) continues to climb following a test of the 100-session moving average in late-September (green line). Renewed antitrust scrutiny did not hurt sentiment and stock is looking towards all-time highs in the $300 area. However, unexpected slowdown in user growth would be an obstacle. Source: xStation5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back
Xtb logo

Join over 935 000 investors from around the world

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
adobe_unique_id cc 1 March 2025
test_cookie cc 1 March 2024
SESSID cc 9 September 2022
__hssc cc 1 March 2024
__cf_bm cc 1 March 2024
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-22576382-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
AnalyticsSyncHistory cc 8 October 2022
af_id cc 31 March 2025
afUserId cc 1 March 2026
af_id cc 1 March 2026
AF_SYNC cc 8 March 2024
__hstc cc 28 August 2024
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
muc_ads cc 7 September 2024
lang
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 28 August 2024

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
personalization_id cc 7 September 2024
UserMatchHistory cc 8 October 2022
bcookie cc 8 September 2023
lidc cc 9 September 2022
lang
bscookie cc 8 September 2023
li_gc cc 7 March 2023

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language