This week is shaping up to be a pivotal moment for the markets as five of the Magnificent Seven companies report earnings and the economic calendar gets packed with important data. Between inflation, GDP reports, and a slew of corporate earnings, volatility could surge. In fact, the CBOE Volatility Index has already jumped back above 20, signaling rising uncertainty. But where there’s volatility, there’s opportunity. We’ve rounded up a few stocks to keep a close eye on as earnings reports start rolling in.
Microsoft (NASDAQ: MSFT) – A Bullish Setup Amid Cloud Concerns
Microsoft is set to release its quarterly earnings on October 30, and there’s a lot of chatter around what could be a key moment for the stock. Despite concerns about margins and capital expenditures related to AI, we’re still bullish on Microsoft’s long-term prospects.
The company’s cloud platform, Azure, remains a major growth driver, and there’s potential for upside in Q1 results. While investor sentiment has been shaky, we believe confidence in Azure’s future acceleration could push the stock higher. With shares up nearly 14% in 2024, Microsoft’s performance is hard to ignore.
Atlassian (NASDAQ: TEAM) – A Dip Worth Buying
Atlassian has struggled this year, with shares down more than 20% in 2024, but we think the sell-off is overdone. Growth concerns have weighed on the stock, but the company’s expanding product portfolio and strong pricing power make it a compelling buy at current levels.
Atlassian is set to report earnings on October 31, and with demand holding steady and partners performing well, this could be a turnaround story in the making. We’re seeing a clear path to 20%+ growth, making this a top pick ahead of the earnings release.
Meta Platforms (NASDAQ: META) – Strong Digital Ad Growth Ahead
Meta Platforms has been on fire in 2024, with shares up nearly 62% year-to-date, and there’s still room to run. Meta reports its third-quarter earnings on October 30, and expectations are high for both top and bottom-line growth. Analysts are expecting Meta to earn $5.27 per share, up 20% from a year ago, driven by favorable digital advertising trends and the company’s heavy investments in AI.
With Meta’s focus on AI continuing to pay off, especially across its platforms like Facebook, Instagram, and WhatsApp, the stock remains a top buy for the days ahead.
These stocks are on our radar this week, and they could be primed for some major moves depending on how earnings shake out. Make sure to stay tuned for updates and be ready to act on these opportunities.
