Meta's,Tesla's, Alphabet's and Amazon are part of Zacks Earnings Preview

For Immediate ReleaseChicago, IL – November 11, 2025 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Meta’s META, Tesla’s TSLA, Alphabet’s GOOGL and Amazon AMZN.Making Sense of the Market's Tech WorriesThe recent pullback in leading artificial intelligence stocks has rekindled concerns about the group’s stock price momentum and market leadership. The absence of economic data due to the government shutdown, at a time of economic vulnerabilities, is adding to market angst.Valuation concerns typically take a back seat during periods of market exuberance, but take center stage when the outlook is murky. Valuation levels are unhelpful, whether we are looking at the Mag 7 group or the market as a whole.Relative to the market as a whole, the Mag 7 group is trading at a 36% premium at present. Over the last 10 years, the group’s valuation premium to the market has been as high as 72%, as low as 24%, with the median at 45%.As you can see here, while the absolute valuation levels are at or near record levels, they don’t appear unusually stretched in relative terms, particularly if you aren’t sympathetic to the ‘AI bubble’ narrative.What we are saying here is that pullbacks along the lines of what we are seeing in recent days need not be catastrophized; they are part of a healthy and dynamic marketplace. Even after the group’s recent weakness, Mag 7 stocks are up +17.9% this year vs. the market’s +16% gain. The group is up +23.1% over the past year vs. a +14.1% gain for the S&P 500 index.It is reasonable to be skeptical of the value of Meta’s AI investments or the lofty pronouncements from OpenAI about new relationships, whether on the infrastructure side with chipmakers or the long-term tie-ins with leading hyperscalers.A notable contributing factor in establishing the Mag 7 group’s leadership status is the group’s enormous earnings power and impressive growth profile. For Q3, the group’s earnings are on track to be up +26.7% from the same period last year on +17.6% higher revenues, which would follow the group’s +26.4% earnings growth on +15.5% revenue growth in the preceding period (2025 Q2).Not all members of the elite group are equally contributing to the growth pace, ranging from Tesla’s -39.5% earnings decline in Q3 to Alphabet’s +33% jump.Estimates for the current period (2025 Q4) are going up, with the current earnings growth rate of +14.3% up from +12.2% a week ago.Market participants appear to have found their peace with these companies’ ever-rising capex plans, particularly if management teams can show some tangible gain in their results. We saw that with Amazon and Alphabet, with both showing accelerating gains in their respective cloud businesses.Microsoft reported strong cloud revenue growth of +26% from the same period last year, a modest downtick from the preceding period’s +27% growth pace, with the December-quarter guidance indicating further deceleration. Despite this deceleration in cloud revenues, management indicated an accelerating capex spending trend in fiscal year 2026. The increased capex is expected to address the capacity issue that has been the primary driver of decelerating cloud revenue growth at Microsoft.Unlike Amazon, Microsoft, and Alphabet, Meta can’t point to a specific business unit whose revenues are accelerating due to the spending growth. Market participants were disappointed with management’s raised guidance for 2026 capex and operating expenses, coupled with almost in-line revenue guidance for the December quarter.Please note that the Mag 7 group is on track to bring in 25.3% of all S&P 500 earnings in 2025, up from 23.2% of the total in 2024 and 18.3% in 2023. Regarding market capitalization, the Mag 7 group currently accounts for 34.9% of the index. If this group of mega-cap companies was a stand-alone sector, it would be the second-biggest in the S&P 500 index, just behind the Technology sector at 43.7% and above the Finance sector at 12.9%.Q3 Earnings Season ScorecardIncluding all reports released through Friday, November 7th, we now have Q3 results from 451 S&P 500 members, or 90.6% of the index’s total membership. Total earnings for these companies are up +14.6% from the same period last year on +8.2% higher revenues, with 82.7% beating EPS estimates and 76.1% beating revenue estimates.For the Tech sector, we now have Q3 results for 70.3% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Tech companies are up +24.4% from the same period last year on +12.6% higher revenues, with 87.9% beating EPS estimates and 86.4% beating revenue estimates.The Earnings Big PictureThe +14.6% earnings growth rate for Q3 represents the blended growth rate for the quarter, which combines the actual results for the 451 companies that have reported with estimates for the companies still to report.In terms of S&P 500 index ‘EPS,’ these growth rates approximate to $260.83 for 2025 and $291.90 for 2026.For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>>Q3 Earnings Season: Tech Sector Remains Growth DriverWhy Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks