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July 22, 2019, 10:55 a.m. EDT

Big Tech’s antitrust suspects enter earnings spotlight, along with Boeing and Tesla

Earnings Watch: Busiest week of the season includes three of the tech companies being investigated by feds

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By Emily Bary

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Facebook preview: earnings seem immune to the Big Tech backlash — for now

Look for Amazon to provide disclosures on investment spending as well, especially as the company tries to make one-day shipping the new standard. The company will still be able to rely on its AWS and advertising businesses to help its operating margins, according to Stifel analyst Scott Devitt, though he expects Amazon’s investment activity to weigh on its margin outlook.

Read: OK Google, tell us why your earnings growth is slowing down ... hello? Anyone there?

Snap has been the best performing of the four social stocks in the lead-up to earnings, and the key question is whether the company can show strong enough user growth to justify its massive 2019 rally. The disappearing-messages company reports results on Tuesday afternoon, followed by Facebook on Wednesday and both Amazon and Alphabet on Thursday. Twitter closes out the week with a Friday morning report.

Chip shot

While Big Tech is concerned about government regulation, investors’ fears for the tech sector are centered more on chips. Industrywide Inventory issues and CPU shortages from U.S. semiconductor kingpin Intel Corp. /zigman2/quotes/203649727/composite INTC -0.89%  have tech investors on edge heading into reports.

Intel is the biggest name this week, amid reports that suggest the CPU shortage is behind it. The chip maker likely benefited from a rebound in the PC market last quarter, but the company’s server business may feel an impact from the U.S. government’s ban on technology sales to Huawei Technologies Co.

Intel earnings: What to expect

Intel’s Thursday report will be preceded on Tuesday by Texas Instruments Inc. /zigman2/quotes/202237907/composite TXN -0.47%  , which has been known to throw up a warning signal in its report, and one of the hottest younger names in the semiconductor sector, Xilinx Inc. /zigman2/quotes/209389378/composite XLNX +0.20%  , on Wednesday. Intel’s biggest rival, Advanced Micro Devices Inc. /zigman2/quotes/208144392/composite AMD +1.59%  , will report the next week.

AMD earnings: What to expect

Money machines

Both Visa Inc. /zigman2/quotes/203660239/composite V -0.40%  and PayPal Holdings Inc. /zigman2/quotes/208054269/composite PYPL -0.09%  likely benefited from strong consumer spending during the second quarter, but some of the most revealing elements of their conference calls will concern business initiatives beyond traditional card purchases.

Visa preview: As Facebook seeks to change payments, Visa stays the course

Visa recently launched B2B Connect, a commercial payments platform, and it’s been gaining traction with Visa Direct, a technology that lets gig-economy companies immediately pay their workers using the debit-card rails. PayPal already told investors to expect a big impact from its recent investments, and it will provide an update on its efforts to generate revenue from its Venmo user base.

PayPal preview: Reaping the benefits of investments

Their reports come as Facebook has generated regulatory attention for its cryptocurrency ambitions. Visa will post results after the closing bell on Tuesday, and PayPal follows the next afternoon.

Telecommotion

Telecommunications names are especially hot, as T-Mobile U.S. Inc.’s /zigman2/quotes/204659678/composite TMUS -0.36%  deal for Sprint Corp. /zigman2/quotes/208685669/composite S -1.16%  continues to await approval. But a big focus when AT&T Inc. /zigman2/quotes/203165245/composite T -1.22%  posts results Wednesday morning may be its video business, which showed continued signs of decay last time around. Expect another quarter of significant video-subscriber losses on Wednesday, though AT&T might be able to distract investors through talk of its streaming-video ambitions: After a disappointing quarter for Netflix Inc. /zigman2/quotes/202353025/composite NFLX +1.83% , Wall Street will want to know more about AT&T’s plans to create a new streaming offering.

AT&T preview: Expect another quarter of big video losses

Comcast delivers results the next day, when broadband traction will be a top theme.

/zigman2/quotes/203649727/composite
US : U.S.: Nasdaq
$ 52.54
-0.47 -0.89%
Volume: 18.01M
Sept. 13, 2019 4:15p
P/E Ratio
12.25
Dividend Yield
2.40%
Market Cap
$232.75 billion
Rev. per Employee
$659,665
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/zigman2/quotes/202237907/composite
US : U.S.: Nasdaq
$ 129.61
-0.61 -0.47%
Volume: 3.11M
Sept. 13, 2019 4:15p
P/E Ratio
23.69
Dividend Yield
2.38%
Market Cap
$121.01 billion
Rev. per Employee
$528,105
loading...
/zigman2/quotes/209389378/composite
US : U.S.: Nasdaq
$ 105.24
+0.21 +0.20%
Volume: 1.59M
Sept. 13, 2019 4:00p
P/E Ratio
28.80
Dividend Yield
1.41%
Market Cap
$26.58 billion
Rev. per Employee
$723,353
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/zigman2/quotes/208144392/composite
US : U.S.: Nasdaq
$ 30.69
+0.48 +1.59%
Volume: 47.76M
Sept. 13, 2019 4:15p
P/E Ratio
174.18
Dividend Yield
N/A
Market Cap
$33.32 billion
Rev. per Employee
$641,089
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/zigman2/quotes/203660239/composite
US : U.S.: NYSE
$ 177.27
-0.71 -0.40%
Volume: 6.10M
Sept. 13, 2019 6:30p
P/E Ratio
35.29
Dividend Yield
0.56%
Market Cap
$385.18 billion
Rev. per Employee
$1.25M
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/zigman2/quotes/208054269/composite
US : U.S.: Nasdaq
$ 107.00
-0.10 -0.09%
Volume: 8.39M
Sept. 13, 2019 4:15p
P/E Ratio
50.95
Dividend Yield
N/A
Market Cap
$125.90 billion
Rev. per Employee
$710,138
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/zigman2/quotes/204659678/composite
US : U.S.: Nasdaq
$ 79.40
-0.29 -0.36%
Volume: 1.74M
Sept. 13, 2019 4:00p
P/E Ratio
20.74
Dividend Yield
N/A
Market Cap
$67.84 billion
Rev. per Employee
$832,885
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/zigman2/quotes/208685669/composite
US : U.S.: NYSE
$ 6.83
-0.08 -1.16%
Volume: 5.28M
Sept. 13, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$27.95 billion
Rev. per Employee
$1.11M
loading...
/zigman2/quotes/203165245/composite
US : U.S.: NYSE
$ 37.91
-0.47 -1.22%
Volume: 39.23M
Sept. 13, 2019 6:30p
P/E Ratio
15.93
Dividend Yield
5.38%
Market Cap
$277.01 billion
Rev. per Employee
$637,332
loading...
/zigman2/quotes/202353025/composite
US : U.S.: Nasdaq
$ 294.15
+5.29 +1.83%
Volume: 6.58M
Sept. 13, 2019 4:00p
P/E Ratio
115.35
Dividend Yield
N/A
Market Cap
$128.79 billion
Rev. per Employee
$2.22M
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Emily Bary is a MarketWatch reporter based in New York.

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