From Highs to Corrections
For the past three years, the so-called 'Big Seven' — including Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla — drove U.S. equities higher. But that trend has shifted by late 2025.
Investors have grown skeptical of the massive AI investments made by these tech giants, particularly questioning when those expenditures will yield real profits. An index tracking the Big Seven hit a record high on October 29, after which five of the seven companies underperformed the broader S&P 500.
Results Will Determine Momentum
So far, only Alphabet and Amazon have maintained strong momentum, with shares rising nearly 20%. According to Darrell Cronk, Chief Investment Officer at Wells Fargo Wealth & Investment Management, tech stocks have become a 'prove-it' story.
If the sector delivers solid results, capital may once again flow back into tech. The upcoming earnings reports will serve as a critical test of investor confidence.
Key Earnings Reports on the Horizon
Next week, Microsoft, Apple, Tesla, and Meta are set to release their quarterly results. Investors will be watching closely for revenue growth, profit margins, and forward guidance.
These reports will not only reflect each company's financial health but also provide insights into the performance of key sectors including cloud computing, consumer electronics, software, and digital advertising.
- Is Microsoft’s cloud business still expanding?
- Can Apple maintain stable hardware sales?
- Has Tesla’s production ramp improved profitability?
- Is Meta seeing a rebound in ad revenue?
The answers to these questions could shape the direction of the tech sector for months to come.