Next week on the stock market

Cloud growth and margins in focus for Amazon

AWS is likely to do much of the heavy lifting in Amazon's results, especially as AI demand continues to reshape cloud spending. Recent quarters have seen AWS growth pick back up to around the mid-20s, and the order backlog has risen as customers race to secure more computing power.

Meeting that demand means more investment. Amazon has pointed to roughly $200bn of capex this year, with the bulk directed at AWS infrastructure. Management argues that's what it takes to keep pace, that AI-related cloud revenue is already running at a strong clip, and they have good visibility on returns.

But investors want a bit more proof, and the flip side is that a higher spend profile can lean on near-term cash flow and margins as depreciation rolls through. The e-commerce business is expected to keep ticking along nicely, so the most useful signals are likely to be AWS growth, margin commentary and any colour on longer-run returns as the investment cycle matures.

Can Apple build on a strong cycle for iPhone upgrades?

Apple reports against the backdrop of a stronger iPhone cycle and news that longtime CEO Tim Cook will be passing the baton to product guru and another Apple veteran, John Ternus. This quarter's iPhone numbers should show whether recent momentum is sticking, and the timing of the CEO news could be a signal that the company is happy with the numbers it's about to put out.

Margins moved higher last quarter, helped by higher average prices as buyers continued to favour the more expensive models, a trend that appears to have continued this year. That richer mix should help soften some cost pressure, like higher memory pricing, without needing broad-based price rises.

Looking ahead, the main question is whether the recent improvement in hardware demand can prove sustainable. Updates on the product cycle, services momentum, the pace of AI integration, and any hints on new device categories should help set expectations for how growth looks beyond the current cycle.

Meta looks to AI to help accelerate its advertising business

AI is adding fresh momentum to Meta's core advertising engine, with better targeting helping support both pricing and volumes. That mix pushed revenue growth higher last quarter, and next week's update should show whether that strength is carrying into 2026.

That said, this story isn't just about top-line delivery. Costs remain front and centre as management pushes to stay at the front of the AI race, even if that means a heavier spend profile in the near term. Media reports have also pointed to further headcount reductions as the group tries to balance discipline with rising infrastructure needs.

The key issue is whether the pace of AI investment is keeping in step with what's being delivered in the ad business, particularly on margins and cash generation. Guidance on operating expenses and capital plans may therefore matter just as much as any headline on advertising demand.

Can Microsoft prove the doubters wrong?

Microsoft's been out of favour of late, but next week’s results should give another read on how well AI and cloud spending are translating into growth. The group is still deep in an investment phase, with data centre and chip spend ramping quickly. The trade-off is that margins can look a little messier in the near term as capacity is built out.

That keeps Azure firmly in focus. Demand has looked resilient, but capacity constraints and internal AI consumption have made the reported numbers harder to interpret. As more capacity comes online, Azure growth and any supply/demand commentary should help show whether today's infrastructure spend is being put to work efficiently.

Beyond the cloud, the market will want to see evidence of AI paying its way in areas like Office 365. Copilot adoption is a useful signpost for whether AI can shift from a cost headwind to a revenue driver over time. Updates on usage, retention and incremental pricing power would help round out the picture of how quickly that transition is happening.

The author holds shares in Meta and Microsoft.