Key Earnings Ahead for the ‘Magnificent 7’, MAGS ETF Firmly Red Pre-Market

In the coming weeks, six of the largest tech companies, collectively known as the ‘Magnificent 7,' are set to release their earnings reports against the backdrop off a huge sell-off in tech to start the week. Microsoft (NASDAQ: MSFT), Meta Platforms (NASDAQ: META), Tesla (NASDAQ: TSLA), Apple (NASDAQ: AAPL), Alphabet( NASDAQ: GOOG), and Amazon (NASDAQ: AMZN), currently have a combined market capitalisation of more than $14 trillion.

With the Nasdaq 100 down almost 4% through the pre-market, as China's DeepSeek AI put's some fear into the AI trade, this print and the outlook could be critical in determining the trajectory from here. Nvidia, the one Mag 7 company not due to report until late next month is trading down 12%, shedding more than $350 million in market cap.

The Magnificent 7 ETF is firmly red in the pre-market, down 4.95% and near the low of the year.

Artificial intelligence and cloud computing are major themes expected to be discussed in the forthcoming reports. Microsoft, for example, will likely focus on its Copilot product, while Meta Platforms will discuss its AI infrastructure. Google, part of Alphabet, may highlight developments in its Gemini AI platform.

Margin management will be another critical area to watch, especially for Tesla and Apple, due to competitive pressures and pricing challenges. The performance of international markets, particularly in China, will also be significant for these companies. Given the highly competitive and dynamic nature of these markets, how these companies manage their operations abroad could impact their overall financial health.

The upcoming earnings reports from the ‘Magnificent 7' are expected to provide critical insights into key technological trends and market dynamics. Investors and analysts will be watching closely, as these reports will likely impact market sentiment and could lead to significant shifts in stock valuations.