This Week's Earnings: What We're Watching

1. Visa: Watch for steady transaction growth and travel spending trends.

2. Starbucks: Key focus on China recovery and loyalty program strength.

3. Microsoft: Azure and AI adoption need to show real traction.

4. McDonald's: Pricing strategies and margin protection are under the spotlight.

5. Apple & Amazon: Services, AWS, and advertising must drive growth in a slower economy.

The Big Week Ahead

We're now in one of the busiest weeks for company earnings reports, and the timing couldn't be more important. With concerns about the economy, changing interest rate expectations, and questions about which companies will lead the market, this week's reports could set the direction for months to come. Big tech and consumer companies are sharing their results, giving us a crucial look at both the economy's health and how companies are really doing. Let's break down which companies we're watching and what we're looking for.

Visa: Riding Strong Travel and Spending

Visa is still benefiting from people traveling and spending money, which is what we'll be watching closely. Their cross-border transactions (when people use Visa cards in different countries) are expected to stay strong - this is one of Visa's most profitable areas. We're also keeping an eye on how many transactions they process and their data processing revenue, which show overall activity. Government regulations are another area to watch, especially with recent attention on card fees. We expect Visa to show good growth, but what their leaders say about spending trends and travel will be just as important as the numbers.

Starbucks: Can They Turn Things Around?

Starbucks has been struggling lately. Their last earnings report disappointed everyone, with smaller profits and weak sales in several regions. This week we'll see if they can change that story. Their business in China is especially important - it's a key growth market that hasn't been doing well recently. We're also curious about their loyalty program and customer traffic in North America. The simple question is: are these just temporary problems, or signs of bigger issues? Any future plans or strategy updates will be crucial for investors trying to regain confidence.

Microsoft: Is AI Actually Making Money?

Microsoft has been leading the AI revolution, and this earnings call gives us another chance to see if that's turning into real money. Azure's growth is the main number to watch, but we're also looking at how tools like Copilot are being used across Microsoft 365 and other business software. Investors want to know if this AI wave will last or if it's just hype. We'll also be watching their planned spending to understand how aggressively they're investing in their technology. It's not just about growth—it's about how efficiently they can grow.

McDonald's: Holding Strong When Consumers Are Careful

People are being more selective with their spending, which makes McDonald's an interesting indicator for retail overall. The market expects a small drop in earnings, but the bigger story is about pricing strategies and how international markets are performing. We'll be watching same-store sales closely, along with any signs that inflation is hurting their profits. They've been pushing value deals in the U.S., and we'll see if that's bringing in more customers without hurting profits. McDonald's is often seen as a safe bet during uncertain economic times, this report will show if that's still true.

Apple & Amazon: Thursday's Heavy Hitters

Apple and Amazon are the biggest reports of the week, each offering different insights into tech and consumer behavior. For Apple, everyone's watching iPhone sales, especially in China where demand has been weak. However, their Services business could be the bright spot again, with high-profit growth helping offset hardware challenges. For Amazon, they're counting on AWS (their cloud business) and advertising to keep profits heading up. We're particularly interested in AWS growth rates and any updates on cost control in their retail operations. Both companies are still market leaders—but investors want to see they can maintain that position in today's tougher environment.

Why This Week Matters For You

This week's reports are about more than just numbers. They show the bigger picture—how companies are adapting to a challenging economy, finding new ways to grow, and whether the biggest tech and consumer companies can stay on top. A lot can change based on what company leaders say and what their plans look like. If you have questions about any company we mentioned or want to learn more, just email us. And if you found this helpful, please share it with friends who might benefit.

Happy investing!
Josh

The information is provided for educational purposes only and does not constitute financial advice or recommendation and should not be considered as such. Do your own research.