Wall Street 5 Big Tech results 2021 presentation guide: what to expect from your accounts and what data investors will focus on - The Wall Street results presentation season has already begun and now the focus is on the 5 big tech companies: Facebook, Amazon, Apple, Microsoft and Google.

Investors, according to the consensus, are preparing for the best campaign in more than a decade in various industries and businesses.

Google, Facebook, Apple, Microsoft and Amazon, the so-called Big Tech (or FAAMG, for its acronym) have benefited enormously from the pandemic, seeing their businesses grow and advertising revenue increase as billions of people around the world turned to the internet to develop their activities.

The 5 companies raised the huge figure of 321,300 million dollars in the last 3 months (about 272,910 million euros), a huge increase of 41% over the same period last year. Every quarter it seems that Big Tech can't grow any more, and every quarter these companies break the roof again.

Now, these firms face real threats, due to pressures from the US Congress, the EU and the ever-increasing volume of competitors. But, for now, as long as it does not have to prepare for another Senate court hearing, experts believe that the big tech companies can still generate greater revenue and profits that have a positive impact on their journey in the markets.

Wall Street 5 Big Tech results 2021 presentation guide

With the Nasdaq trading close to its all-time highs, most of the attention, with this presentation of the accounts for the second quarter of 2021, will be focused on the potential that the FAAMG can have in the coming months.

This is what you can expect from the big tech's results campaign and what numbers investors should keep a close eye on.

1. Google

Alphabet, Google's parent company, has been FAAMG's best performing action of 2021 so far, by a wide margin. The internet search giant continues to benefit from the broad strength in the online advertising market. Its shares, which have recovered 44% so far this year.

Google, which broke sales records during the first quarter and announced a new share buyback plan for $ 50 billion (about € 42.45 billion), reports below the financial results after the US market closed on Tuesday, July 27.

"Investors will continue to focus on the growth rates of Google's core Internet search and advertising revenue business, which posted a year-on-year profit of almost 32% to $ 44.6 billion (about 37.9 billion euros) in the previous quarter,” Jefferies experts explain in a recent note.

"We will also observe the growth of YouTube advertising revenue, which increased by 49% over the previous year to 6,010 million dollars (about 5,102 million euros) in the last quarter,” they add.

In addition, a segment that should be prepared to develop another quarter of growth is Alphabet's Google Cloud Platform, whose sales increased by 46% in the first period of 2021.

The company has been investing heavily in its cloud business, which is not yet profitable, while trying to compete with Amazon and Microsoft.

Wall Street 5 Big Tech results 2021 presentation guide

2. Microsoft

Microsoft has proven to be a high-flying value in the markets. The tech titan's shares hit all-time highs recently, thanks to strong demand for its cloud-based offerings.

The Redmond-based firm has seen its shares rebound by approximately 26% since the beginning of the year, surpassing the S&P 500's 15% rebound over the same time period.

In this regard, Microsoft, which exceeded profit and revenue expectations in the last quarter, is poised for an even more positive quarter. Revenues are projected to reach an all-time high of $ 44 billion (approximately Euro37, 358 million), approximately 16 per cent more than sales for the same period last year, benefiting from the growing demand for its cloud computing services.

"Investors will focus on the growth of Microsoft's burgeoning intelligent cloud business, which includes Azure, SQL Server, Windows Server, GitHub and other enterprise services,” JPMorgan experts say in a recent report.

Microsoft's cloud revenue rose 23% year-on-year to $ 15.1 billion (around € 12.82 billion) in its most recent quarter, while its Azure services turnover grew by 50%.

” Another key metric will be the behavior in the Business Processes and Productivity segment of Microsoft", analyze from JPMorgan

Wall Street 5 Big Tech results 2021 presentation guide

3. Apple

The apple sign waits like May water the presentation of its accounts, after having harvested new highs in the bag recently. Apple shares have lagged behind the rest of the Big Tech with a peak so far in 2021 of 10.1%.

The consensus predicts revenue to increase more than 22% over last year, reflecting strong demand for the iPhone 12 with 5G capacity.

” In addition to the revenue and profit figures, we must attend to the growth in Apple's iPad and Mac businesses, since both have performed well in the midst of the current teleworking environment, registering revenue growth rates of 79% and 70%, respectively, in the last quarter, " Goldman Sachs analysts comment in a report.

"In addition, investors will be interested to know if Apple will provide more details on the potential impact of the regulatory and legal challenges it currently faces in the United States and Europe,” they add.

Wall Street 5 Big Tech results 2021 presentation guide

4. Facebook

Although it has several challenges per deal, such as ongoing regulatory investigations at home and abroad, lingering privacy concerns, as well as recent changes in Apple's iOS 14, which could negatively impact its advertising business, Facebook shares have shown great behavior this year by rebounding more than 25%.

The social media giant has benefited from an acceleration in ad spending. It now has approximately 3,450 million monthly users in its applications, including Instagram, Messenger and WhatsApp.

“As usual, it will be interesting to see Facebook's update regarding its active user accounts, as well as average revenue per user (ARPU, two key metrics for the social media company),” Jefferies experts say.

Facebook commented that daily active users (DAU) in the first quarter increased by 8% over the previous year, to 1.88 billion, while monthly active users (MAU) rebounded by 10% to 2.85 billion.

” In addition to revenue and profit figures, investors should also focus on the management team's comments on the negative impact of Apple's recent iOS update, which limits Facebook's ability to track user activity on third-party sites, " said these analysts from the analytics firm.

Wall Street 5 Big Tech results 2021 presentation guide

5. Amazon

Amazon has been another relatively laggard among large-cap technology leaders, earning less than 10% since the beginning of the year on the stock exchange. Like Apple, the e-commerce leader's shares have underperformed both the S & P 500 and the Nasdaq in 2021.

The company, which has been one of the biggest winners of the pandemic, has struggled this year when confinement restrictions ended and consumers revisited physical establishments.

” For Amazon it is important to see how the company's thriving cloud business evolves to see if it can maintain its massive growth rate, " JP Morgan experts explain in a note.

The revenues of Amazon Web Services (AWS) increased by 32%, to 13,500 million dollars (11,462 million euros) in the first quarter, consolidating its position as a leader in the cloud computing space, ahead of the aforementioned Microsoft Azure and Google Cloud.

Outside of its core retail and cloud segments, advertising revenue, which has increasingly become another growth engine for the firm founded by Jeff Bezos, will also be in the spotlight.

Wall Street 5 Big Tech results 2021 presentation guide