As large-cap growth (Magnificent 7) stocks continue to dominate S&P 500 performance, Tesla (NASDAQ:TSLA) will kick off third-quarter earnings on Wednesday, while Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and Meta (NASDAQ:META) will be among those reporting next week.
The Roundhill Magnificent Seven ETF (MAGS) has risen more than 35% in the past year, with Nvidia (NASDAQ:NVDA) reaching a market cap of $4.3T, and the rest of the stocks rebounding after lagging earlier this year as AI enthusiasm reigns.
Yet, investor concerns over market concentration and the Magnificent 7’s performance are growing, with focus shifting to 2026 earnings forecasts and AI-driven growth.
Here is a quick recap of the performance and sentiment around the stocks:
Electric vehicle giant Tesla (NASDAQ:TSLA) is scheduled to release its Q3 financial results on Wednesday after the market closes, with analysts anticipating a 23% decline in profits despite expected top-line growth of about 6%.
A consensus of analysts expects the company to report earnings per share of $0.56 on revenue of $26.70B.
“Tesla, Inc. faces short-term EV headwinds, with record Q3 deliveries likely an anomaly amid increased competition and waning incentives,” writes one Seeking Alpha analyst.
For investors, Elon Musk’s commentary on the automotive business, Optimus, and robotaxi developments will be of keen interest.
Alphabet (NASDAQ:GOOGL) will be next on deck, with its report scheduled for Tuesday, Oct. 29. Having gained about 32% in value so far this year, analysts set a consensus revenue estimate of $99.96 billion and an EPS estimate of $2.29 per share.
Alphabet benefits from AI-driven efficiency, strong market share in productivity tools, and the transformative potential of YouTube content creation.
In other news, with a robust balance sheet and prudent debt management, Alphabet is well-equipped to weather an AI recession and capitalize on industry consolidation, analysts say.
The stock earns a Buy rating from Wall Street analysts, while Seeking Alpha’s Quant Rating System gives it a Hold.
Microsoft (NASDAQ:MSFT), up 5.3% in the July–September period, and Meta (NASDAQ:META), up 2% in the same period, are slated to report on Wednesday, Oct. 29.
Microsoft was recently upgraded to Buy by Kenio Fontes. The analyst is optimistic about the windows maker’s growth in cloud and AI initiatives, which could lead to promising future returns. This comes despite some market risks that persist around AI demand and competitive pressures.
A consensus of analysts expects the company to report earnings per share of $3.66 on revenue of $75.35B.
Turning to Facebook parent Meta (NASDAQ:META), analysts expect earnings per share of $6.64 on revenue of $49.36B, with a primary focus on the AI market and the company’s AI monetization.
Meta’s broader trend remains underpinned by investor confidence in its AI expansion and data center build-out. Meanwhile, the partnership with Arm comes at a crucial time for Meta, which has faced a volatile trading month amid market-wide profit-taking in large-cap tech.
This pivot is increasingly significant as the competition in generative and recommendation-based AI intensifies, with peers like Google (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) also ramping up infrastructure spending, one Seeking Alpha analyst writes.
The company gets a Seeking Alpha quant rating of ‘Hold‘ with the highest factor grades marked for profitability.
When it comes to Apple (NASDAQ:AAPL), the consensus estimate for its FQ4 revenue is $102.09B, representing 7.5% Y/Y growth. The EPS estimate is $1.77.
Nikkei Asia this week reported that Apple (NASDAQ:AAPL) is reducing iPhone Air production orders but increasing those for other iPhone 17 models as strong overall sales of the lineup continue.
Apple was also downgraded to Hold by Juxtaposed Ideas. The analyst points to potential tariff impacts and valuation concerns, along with an overly optimistic market outlook hindering a more favorable investment thesis.
“While AAPL’s technical indicators point to reasonable RSI and trading volumes, I prefer to err on the side of caution and downgrade the stock to a Hold here, attributed to the tariff uncertainties, the premium valuations, and the pulled-forward upside potential to my long-term price target.”
Amazon (NASDAQ:AMZN), which reports on the same day, is expected to post a nearly 9% growth in profit, with revenue rising 11.8%.
Internal documents seen by the NYT indicate that Amazon’s (NASDAQ:AMZN) robotics team is working towards automating 75% of the company’s entire operations and expects to remove 160,000 U.S. roles that would otherwise be needed by 2027.
According to one Seeking Alpha analyst, Amazon holds strong: AWS leads, ads boost margins, and retail grows more efficiently.
“Although CapEx will keep temporary pressure on cash flow, the projected growth for 2026, together with the stability expected in margins, should restore free cash flow over time.”
Nvidia (NASDAQ:NVDA) reports in November. HSBC upgraded Nvidia (NASDAQ:NVDA) to Buy from Hold, noting that it expects the AI graphics processing unit total addressable market to keep increasing beyond hyperscalers, leading to continuous earnings growth. Wall Street expects a profit of $1.24/share, a nearly 54% growth year-on-year.