We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

Amazon, Apple and Meta – what to expect in upcoming earnings

Here’s what we’re looking out for in this week’s results from Amazon, Apple and Meta.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

This article is more than 6 months old

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

This week Amazon, Apple, and Meta (Facebook) will report their latest results, but what could be in store for investors and could we see any surprises?

Here’s a closer look at what to expect.

Investing in individual companies isn't right for everyone. That's because it's higher risk, your investment depends on the fate of that company. If that company fails, you risk losing your whole investment. If you cannot afford to lose your investment, investing in a single company might not be right for you. You should make sure you understand the companies you're investing in and their specific risks. You should also make sure any shares you own are part of a diversified portfolio.

This article isn't personal advice. If you're not sure an investment is right for you, seek advice. Investments, and any income from them, will rise and fall in value, so you could get back less than you invest. Past performance isn’t a guide to the future.

Want the latest share research and results updates direct to your inbox?

Pick the shares you want to hear about

Amazon

Sophie Lund-Yates, Lead Equity Analyst

Amazon is dealing with plenty of unhelpful headwinds. High inflation and a shaky economic outlook means retail sales were lower than we’d hoped last quarter. Slowing retail sales are a problem because Amazon’s costs are too high. Volumes aren’t strong enough to offset the costs of gargantuan expansion efforts after the pandemic accelerated demand. The net effect is poor profit performance. Despite double digit rises in revenue last quarter, profits almost halved to $2.5bn.

With the economic climate still highly uncertain, there’s a real chance the outlook statement might not please the market.

Amazon’s under the spotlight where labour’s concerned. It could be forced to factor in new pay rises, which could spell further trouble for margins. If the projected 18,000 job cuts also come true, there will be considerable severance costs.

It will be equally crucial to see how the cloud business, AWS is holding up. Microsoft has reported a strong showing in its cloud division, as companies look for ways to unlock long-term efficiencies. This should have a positive read-across for Amazon.

FIND OUT MORE ABOUT AMAZON SHARES, INCLUDING HOW TO INVEST

Sign up FOR UPDATES ON AMAZON

Apple

Matt Britzman, Equity Analyst

Apple's expected to see revenue drop for the first time in 15 quarters when it reports first quarter earnings. Having held up relatively well over the last earnings season, we’re cautiously optimistic about the coming results.

A weaker US dollar and price hikes pushed through toward the end of last year should both act as tailwinds. But significant production disruptions in China due to Covid restrictions, riots and walkouts were a challenge.

Our main concern is that short-term disruptions could be compounded by weakening hardware demand. iPhone sales were already a little weaker than expected back in October.

The Christmas period will be a crucial barometer for the health of the consumer. There’s also a concern that upward pressure on costs is likely to be a lingering bugbear, especially as Apple looks to accelerate production diversification away from China. It’s the right move in our view for the stability of long-term production, and something we’ll be looking out for any updates on.

FIND OUT MORE ABOUT APPLE SHARES, INCLUDING HOW TO INVEST

Sign up FOR UPDATES ON APPLE

Meta

Matt Britzman, Equity Analyst

Meta finds itself in somewhat of a downward spiral. Costs are rising, advertising spend is falling and markets are expecting to see another profit decline in next week’s fourth quarter results. These aren’t small declines either, with operating profit expected to come in around $7.7bn – that’d be down 39% year on year.

Steps are being taken to reign in some damage, and Meta joins the list of mega cap stocks to start major layoffs – to the tune of 11,000 jobs in November.

For investors, though, the real issue seems to be the stubborn approach to investment in Reality Labs. The business unit responsible for bringing the Metaverse to life. Here in the real world, operating losses from the division are mammoth – to the tune of $4bn a quarter.

It’s certainly possible Meta gives the market what it wants, a reign in on spending. But until that happens, or Reality Labs conjures up some magic, we don’t see sentiment changing too much.

FIND OUT MORE ABOUT META SHARES, INCLUDING HOW TO INVEST

Sign up FOR UPDATES ON META

Remember, before you can trade US shares, you need to complete and return a W-8BEN form.

To follow our coverage of US tech stocks, plus 120+ of the most widely held shares on the market, sign up to our weekly Share Insight email. Every Saturday morning we’ll send you a roundup of the latest market events and what they mean for investors.

Unless otherwise stated, estimates are a consensus of analyst forecasts provided by Refinitiv. These estimates are not a reliable indicator of future performance. Past performance is not a guide to the future. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.

Share insight: our weekly email

Sign up to receive weekly shares content from HL.

Please correct the following errors before you continue:

    Existing client? Please log in to your account to automatically fill in the details below.

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    Loading

    Your postcode ends:

    Not your postcode? Enter your full address.

    Loading

    Hargreaves Lansdown PLC group companies will usually send you further information by post and/or email about our products and services. If you would prefer not to receive this, please do let us know. We will not sell or trade your personal data.

    What did you think of this article?

    Important notes

    This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

    Editor's choice – our weekly email

    Sign up to receive the week's top investment stories from Hargreaves Lansdown. Including:

    • Latest comment on economies and markets
    • Expert investment research
    • Financial planning tips
    Sign up

    Related articles

    Category: Shares

    Autumn statement 2023 – NatWest retail share offer

    The UK government could sell its NatWest shares to the public by the end of 2026. We look at how this could work and how you can stay up to date.

    Jason Roberts

    29 Nov 2023 4 min read

    Category: Autumn statement 2023

    Autumn statement top stock market takeaways

    Tax cuts, alcohol and tobacco duty changes, and housebuilding funding, what impact do we see this having on investing?

    Derren Nathan

    28 Nov 2023 5 min read

    Category: Shares

    abrdn Asia Focus investment trust: November 2023 update

    In this update, Investment Analyst Henry Ince shares our analysis on the manager, process, culture, ESG integration, cost, and performance of the abrdn Asia Focus investment trust.

    Henry Ince

    27 Nov 2023 7 min read

    Category: Shares

    How do volatile oil prices impact renewables and what does this mean for investors?

    We share how volatile oil prices impact investors and renewables, and look at what good looks like using Shell and BP as examples.

    Dominic Rowles

    27 Nov 2023 4 min read