Trader Talk

Three things to watch when the tech titans report earnings

An employee stacks boxes filled with merchandise for shipment at the distribution center in Phoenix, Arizona.
David Paul Morris | Bloomberg | Getty Images

First banks, then industrials, now big tech names like Amazon, Microsoft, Alphabet, Baidu and Intel report after the bell. I checked in with David Aurelio, who tracks earnings for Thomson Reuters, and asked what key metrics will matter. His thoughts:

  1. Cloud computing/data center: Focus on market share gains from leaders like Amazon and Microsoft. Is Alphabet becoming a threat? Server hardware is also a big issue, as competition heats up between Intel, Nvidia and Advanced Micro Devices.

  2. PC sales: Expected to be at least stable and maybe a bit stronger. Should have helped Microsoft, with sales and conversions to Windows 10. Look for companies to say that corporate refresh is on the horizon. Was Intel able to benefit, or has competition from AMD impacted either market share or margins?

  3. Semiconductors & semi equipment: Within the technology sector, analysts are most bullish on semiconductor equipment, followed by semiconductors. Memory will be in focus: Samsung report indicates that memory supply shortage and high demand to continue. Intel and Western Digital should benefit from supply/demand. Western Digital likely to beat, but guidance will be far more important. Also, look for any input on Western Digital's bid for Toshiba. Look for increased capex spending outlook to come through in KLA-Tencor.