The S&P 500 marked a record-breaking June with frequent highs, spurred by robust earnings reports from industry leaders like Broadcom (AVGO) and Oracle (ORCL), underscoring sustained demand for artificial intelligence (AI) technologies.
As the market gears up for the second half of the year, the tech sector remains buoyant, with expectations high for stalwarts such as Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN) to continue their robust earnings growth trajectory.
Here are some key companies to watch closely this July:
Broadcom
June saw Broadcom surge nearly 21% following strong AI revenue in its fiscal second quarter and a declared 10-for-1 stock split. Historically, such splits are viewed favorably, often boosting stock performance. Analysts believe Broadcom is well-positioned to capitalize on the AI revolution, with potential to approach the $1 trillion market cap.
Tesla
After a sluggish start to the year, Tesla (TSLA) has regained momentum in recent months despite challenges. Amid reports of scrapped plans for a lower-priced model, CEO Elon Musk’s reassurance about accelerating new model production bolstered investor confidence. Tesla’s upcoming second-quarter delivery report will provide insights into its recovery path amid stiff competition and subdued EV demand.
McDonald’s
McDonald’s (MCD) faces scrutiny amid consumer backlash over perceived price hikes. Despite corporate denials, the fast-food giant reported a slowdown in sales, prompting initiatives like the $5 value meal to attract price-sensitive customers. The impact of these efforts will be closely watched in upcoming quarterly results.
Boeing
July brings potential legal repercussions for Boeing (BA) following DOJ scrutiny over its compliance with a 2021 deferred-prosecution agreement. The aviation giant continues to navigate production challenges and regulatory issues stemming from recent incidents, with its second-quarter earnings report likely to reflect ongoing financial strain.
Spotify
Spotify (SPOT) anticipates its second consecutive profitable quarter amid efforts to enhance profitability through cost-cutting and price adjustments. Investor focus will be on subscriber growth trends and updates on new subscription offerings, influencing broader sentiment toward media streaming stocks.
As these companies prepare to disclose their quarterly performances, investor attention remains keen on navigating evolving market dynamics and economic uncertainties.
