Four of the Magnificent Seven Report This Week: Here's What We Expect
4 tech giants. 1 week. Market-moving earnings.
This week, four of the Magnificent Seven: Microsoft (MSFT), Meta (META), Apple (AAPL), and Amazon (AMZN), step into the earnings spotlight. Together, these four account for over $8 trillion in market capv and over 25% of the S&P 500 by market cap and thus an outsized influence over major indices.
But high expectations can be a double-edged sword. We've seen it before: stocks beat on paper, but still sell off. This week could be no different. The question isn't just whether they beat or miss, it's how investors react to the narrative.
With that in mind, we break down what to expect from each company, what matters most in their results, how the charts are set up, and how we're thinking about trades.
Key Takeaways
All four names are approaching earnings with bullish technical setups but stretched valuations.
Microsoft and Amazon show the cleanest breakout potential.
Meta is range-bound and vulnerable to guidance risk.
Apple looks technically constructive but may lack a clear catalyst.
A strong beat doesn't guarantee upside. Watch the narrative, not just the numbers.
MSFT 0.00%↑
Narrative Watch: Azure growth, AI-related capex, Office monetization, cloud margins.
What to Watch in Earnings:
Azure revenue growth vs. expectations (~19%)
Cloud margins (Intelligent Cloud = ~40% of revs)
AI infrastructure spend and ROI
Xbox / Gaming commentary (Activision integration)
Technical Setup:
Price: $513.71
RSI ~72 (overbought)
Above 20EMA ($501) and hugging upper Bollinger Band
Fib extension targets: $536, $566
Expectations & Scenarios:
Miss: Back to $480–466 fast (0.382–0.236 Fib)
Inline: Choppy but holds $500
Beat: Push toward $535
Heavy Beat + Guidance: $550–565
Our View: Solid execution likely, but upside may be capped if AI spend overshadows margin improvement.
Positioning: We hold a debit call spread (500c/540c) into earnings, reduced size.
AAPL 0.00%↑
Narrative Watch: iPhone demand, tariffs, services growth, and AI roadmap.
What to Watch in Earnings:
iPhone revenue, especially China unit strength
Services margin expansion
Comments on Vision Pro and future AI features
Technical Setup:
Price: $213.88
RSI ~63, MACD neutral
Above EMAs but under key Fib resistance at $216
Upside Fib targets: $228, $241
Expectations & Scenarios:
Miss: $204–207 zone retest
Inline: Stays in $210–215 band
Beat: Breaks $216, runs to $228
Heavy Beat w/ AI clarity: Stretch toward $240+
Our View: Results may be "good, not great." AI lag and margin commentary may temper enthusiasm.
Positioning: Not trading this one into earnings, risk/reward is too balanced.
META 0.00%↑
Narrative Watch: Ad growth, Reels monetization, AI ad tools, CapEx, regulatory overhang.
What to Watch in Earnings:
Revenue growth vs. 15% expectations
Reels/Instagram monetization updates
AI ad targeting uplift
Expense guidance for 2H25
Technical Setup:
Price: $712.68
RSI ~54, MACD flat
Range-bound under $735; support ~$705
Fib extension levels: $760, $803, $872
Expectations & Scenarios:
Miss: Breaks $705, likely sees $685 fast
Inline: Stays between $705–730
Beat: Reclaims $735, targets $760
Heavy Beat + spend discipline: $800+
Our View: Priced for perfection. Needs more than just a beat to move.
Positioning: Small put debit spread (700p/670p) as hedge on valuation disappointment.
AMZN 0.00%↑
Narrative Watch: AWS growth, ad business momentum, retail margin improvement.
What to Watch in Earnings:
AWS revenue reacceleration and margins
Cost controls in fulfillment
Growth in ads and Prime subscriptions
Technical Setup:
Price: $231.44
RSI ~66, MACD bullish
Strong trend above all EMAs
Fib extensions: $240, $261, $281
Expectations & Scenarios:
Miss: $224 test (20EMA), deeper to $215 if weak AWS
Inline: Holds range near $230
Beat: Breaks $233, runs to $240
Heavy Beat + AWS margin upside: $250–260
Our View: Best setup among the four. Strong narrative tailwinds + technical strength.
Positioning: Long call debit spread (230c/250c). Tight stop below $224.
How We're Trading This Week
MSFT: Accumulate shares below $500 if we see a post-earnings dip. Re-add under $475. Trim above $540 if met with weak follow-through.
AAPL: Wait-and-see. If price clears $216 on volume, short-term calls may work. Otherwise, selling put spreads $200/$195 post-earnings.
META: Buy shares only on breakout >$735 with strong volume. If META dips below $685 on weak guidance, we’ll start scaling in with a target to add near $660.
AMZN: Reduce exposure into $240+ if AMZN rallies on earnings. If we see a pullback to the $215–220 range, we’ll initiate a position and add below $210 with a stop under $200.
We want asymmetric risk/reward. That means betting where upside skew exists and the technicals confirm the thesis.
Bottom Line
This week is about more than just earnings numbers. It's about whether these companies can justify their AI-fueled multiples with real, sustained growth, or whether expectations have gotten ahead of execution.
All four names are priced for near-perfection. That doesn’t mean they can’t go higher, but the reward now requires real delivery.
We’ll be watching:
Azure and AWS growth rates
iPhone and Services outlook
AI monetization across the board
Guidance (especially FY25 and holiday quarter commentary)
Also, keep an eye on guidance, segment-level growth, and margin trends. Watch the market reaction, not just the EPS print. And trade smart: the best setups aren't always the loudest ones.
We'll be covering reactions post-earnings. Follow along.
Stay sharp.
Investing with Purpose isn’t about chasing hype. It’s about understanding structure, risk, and edge.
This analysis is for informational purposes only and does not constitute a recommendation to buy or sell any security.