Mag 7 Giants AAPL & AMZN Earnings On Deck

Apple (AAPL) and Amazon (AMZN), two of the lauded Magnificent Seven stocks, are both due to report earnings Thursday. It’s difficult to overstate the importance of these two companies for investors. Together, they boast a combined market cap of about $5.6 trillion, which is roughly 9.4% of the S&P 500’s total valuation, so these two pillars of the market could shape the broader price action for many other areas.

Apple is the second-weakest of the Mag 7, down more than -15% year-to-date as of yesterday’s close and outperforming only Tesla (TSLA). Analysts are looking for adjusted EPS of $1.42 vs. $1.40 one year ago (+1.4%), and for revenue of $88.92B against last year’s figure of $85.78B (+3.6%). Guidance is a key focus for this earnings season, as companies grapple with the reality of the new tariff and trade environment as well as general uncertainty about how some deals could eventually shake out. As always, investors will be looking for the critical segments of iPhones and Services. 

In terms of price action, the expected range for Apple’s Aug. 2 weekly options expiration comes in at about 205 to 217, which is roughly a +/-2.8% potential move. Despite a +25% rally off April’s tariff news lows of 169.21 to yesterday’s close of 211.27, price remains stuck at around the 216 level. This represents an old low point from late March before a gap down, the opening of which is another upside level to watch near about 221. Volume drops off below about 210, which also aligns with the 21-day Exponential Moving Average and gives traders a supportive confluence to consider.

Meanwhile, Amazon is in the middle of the pack, gaining about +5% year-to-date as traders speculate on the results of its earnings after tomorrow’s close. The Street’s estimates are for $1.33 earnings-per-share vs. $1.23 last year (+8.1%), while revenue is projected at $162.28B vs. $147.98B one year ago (+9.6%). A recent analyst note from UBS said they expect the online retail giant to outperform on extensive investments in e-commerce, Amazon Web Services, and advertising.

Amazon has seen a sharp rally of +52% from the April lows. It recently filled an old gap from Feb. 6 near 236 but has since backed off. Price still remains within the boundaries of an upward channel that could project potential resistance just above the previously mentioned gap level near 240, which also aligns with the yearly +1 Standard Deviation Channel. To the downside, a heavy volume node lines up with the 21-day EMA near about 226.