Earnings revisions show greater optimism toward Apple, Meta Platforms

Technology companies with a collective market value of about $12.2 trillion – or about a quarter of the total value of the Standard & Poor’s 500 stock index (SP500) – report quarterly earnings in the next few days.

Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META) are each valuable enough to move the broader market – dramatically even – when they report quarterly results and provide future guidance.

Seeking Alpha users can get an indication of sentiment toward a stock and its possible momentum by reading quarterly estimates revisions, or the number of times analysts have updated their forecasts of company results — for better or worse.

Microsoft

Six analysts in the past three months have increased their estimates of Microsoft’s (MSFT) earnings for its fiscal first quarter, compared with 19 analysts who have lowered their estimates.

The bigger number of downward revisions may indicate that the analyst community has become more pessimistic toward the maker of Windows and Office software, which reports earnings on Oct. 30.

Quant Rating for Earnings Revisions: D+

Apple

Eighteen analysts in the past three months have increased their estimates of Apple’s (AAPL) earnings for its fiscal fourth quarter, compared with nine analysts who have lowered their estimates.

The difference appears to indicate improved sentiment toward the iPhone maker, which reports earnings on Oct. 31.

Quant Rating for Earnings Revisions: B

Alphabet

Seven analysts in the past three months have increased their estimates of Alphabet’s (GOOG) (GOOGL) earnings for its fiscal third quarter, compared with three analysts who have lowered their estimates.

The bigger number of upward revisions appears to indicate that analysts are more positive about the owner of Google, YouTube and the most popular digital advertising software, which reports earnings on Oct. 29.

Quant Rating for Earnings Revisions: B

Amazon.com

Ten analysts in the past three months have increased their estimates of Amazon.com’s (AMZN) earnings for its fiscal third quarter, compared with 21 analysts who have lowered their estimates.

The difference appears to indicate analysts have become more pessimistic about the e-commerce and web development company, which reports earnings on Oct. 31.

Quant Rating for Earnings Revisions: B+

Meta Platforms

Twenty-three analysts in the past three months have increased their estimates of Meta Platforms’ (META) earnings for its fiscal third quarter, compared with three analysts who have lowered their estimates.

The disparity appears to indicate that analysts have grown more optimistic toward the owner of Facebook, Instagram and Oculus, which reports earnings on Oct. 30.

Quant Rating for Earnings Revisions: A-