Microsoft will bat leadoff for Big Tech this week as the Seattle company holds its quarterly earnings call, scheduled for after market close Tuesday. The Q2 earnings will arrive amid a massive stock market rotation that has hammered mega-cap names in favor of smaller stocks in recent weeks. Investors will be watching closely if Microsoft, no stranger to lofty expectations, can continue delivering strong numbers for its cloud services—a crucial element of AI profitability in the near term. Similar questions loom large for Amazon, Meta, and Apple, which will follow Microsoft in reporting earnings later this week.
Unless these tech giants all wildly beat estimates, it’s unlikely earnings results will stop the rotation that is favoring small-caps and value-oriented sectors of the market, Baird’s Ted Mortonson told Fortune last week. Microsoft shareholders, however, have become accustomed to good news from CEO Satya Nadella and CFO Amy Hood.
