Top Four Magnificent 7 Stocks to Watch This Week: Apple, Microsoft, Meta, Amazon

The Magnificent 7 stocks have largely underperformed the broader market this year, with the closely-watched Roundhill Magnificent Seven ETF (CBOE: MAGS) falling 4.26%. In contrast, the Invesco QQQ Trust (NASDAQ:QQQ) has jumped 11.3% over the same period. This article highlights the top four Magnificent Seven stocks to watch this week.

Microsoft 

Microsoft has become one of the worst-performing Magnificent Seven stocks this year as it dropped by over 30% from its all-time high. 

The stock has slumped because of the ongoing SaaSPocalypse fears and its growing capital expenditure. In the last financial results, the company hinted that it will spend over $190 billion in capex this year. There are also concerns about Copilot, its AI bot, whose market share has lagged behind ChatGPT and Claude.

Microsoft stock will be in focus this week as it releases its financial results. Analysts expect its results to show that its revenue rose by 14.6% last quarter to $87 billion. Its EPS is expected to jump from $3.65 to $4.24.

As we saw with Alphabet (NASDAQ:GOOG) last week, the main driver for the stock will be its capital expenditure. In its results, Google said that it would boost its capex to $205 billion. If Microsoft boosts its capex, chances are that its stock will drop as investors focus on its return on investment.

Meta Platforms

Like Microsoft, Meta Platforms earnings will focus on the company’s capital expenditure plans. In its last earnings report, the company hiked its capex from $125 billion to $145 billion. As such, another increase will put pressure on the stock. 

At the same time, the company will likely outline its plans for monetizing its substantial data center investments. Recent reports suggested that it would start selling its excess capacity, a move that could generate billions of dollars a year. As such, traders will focus on whether management addresses this development.

Also, the stock will react to the company’s potential cash-raising moves. The FT recently reported that the company was considering raising billions of dollars through debt and equity.

Benzinga data shows that analysts expect Meta’s revenue to be $60 billion, up by 26% YoY. Its EPS is also expected to move from $7.14 to $7.22. 

Amazon

Amazon stock has moved into a correction after falling by 17% from its highest point this year. Like the other hyperscalers, focus among investors this week will be its capital spending plans, which jumped to $200 billion. An increase in this spending may have a negative impact on its stock.

Amazon’s revenue is expected to move to $196 billion, up by 17% YoY, with the earnings-per-share moving from $1.68 to $1.82. Amazon has a long record of beating its EPS and revenue estimates, and the same may happen this week.

Apple

Apple, the second-biggest company in the Magnificent 7, will publish its financial results on Thursday. These numbers are expected to be strong, helped by the new devices. The average estimate is that its revenue jumped by 15.8% in the quarter to $108 billion. 

Apple will react to several announcements in this report. One of these is the impact of the planned price hikes of its future devices. It will also highlight its AI strategy amid accusations that it missed the trend. Additionally, the company may talk about the ongoing memory shortage and the pressure it is putting on the Trump administration to use Chinese products. 

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