– The FED FOMC meeting, PCE inflation data and the profits of “Big Tech” will be at the center of attention this week.
– Meta’s aggressive advance in AI, associated with strong growth in income and profits, makes it an attractive action to buy.
– Apple is faced with winds linked to the slowdown in iPhone sales and the decline in innovation dynamics, making it a title to be approached with caution.
American shares fell down on Friday, but still recorded their second consecutive positive week after the inauguration of President Donald Trump.
The DOW and the S&P 500 increased 2.1 %and 1.7 %respectively, while the index, with a strong technological component, climbed by 1.6 %.
Source : Investing.com
The coming week should be rich in events, including a key meeting of the Fed monetary policy committee, an important measure of inflation, as well as a multitude of results of leading technological companies.
The American central bank should leave its interest rates unchanged on Wednesday, but the president of the Fed, Jerome Powell, could respond to the pressures exerted by President Trump in favor of a drop in rates during the press conference which will follow the meeting.
The markets are not currently expecting a drop in rates before June, although the May meeting is very tight, according to the Investing.com.
In addition to the Fed, the most important element of the economic calendar will be the publication on Friday of the price of personal consumer expenditure (PCE), which is the FED’s favorite inflation measure.
Source : Investing.com : Investing.com
Meanwhile, the profits season is in full swing, with four of the greatest technological values of the “seven magnificent” which must publish their last results. Microsoft (Nasdaq :), Meta Platforms (Nasdaq ???? and Tesla (Nasdaq ???? will publish their results Wednesday evening, while Apple (Nasdaq ???? will publish them at the end of the day.
Ces Méga-capitalisations Seront Rejoaintes Par de Grandaq Par de Grandaq Metoms Comme Intel (NASDAQ :), Asml (as :), Boeing Service (NYSE :), General Motors (NYSE :), Caterpillar (nyse :), Exxonmobil (nyse :), chevron (nyse :), visa (nyse :), Mastercard (NASDAQ :), Starbucks (NASDAQ :), LOCKHEED Martin (NYSE ???? ET Southwest Airlines (NYSE :).
Whatever the management taken by the market, I highlight below an action likely to be sought and another which could experience a new decline. Do not forget, however, that my time horizon it is coverage what The coming week, from Monday 27 to Friday 31 January.
Actions to buy: Meta Platforms
Meta Platforms, Facebook’s mother company, Instagram, Threads and WhatsApp, is distinguished as active to buy this week, its report on the results of the fourth quarter being eagerly awaited and having to constitute a major catalyst for the technology giant .
Meta should present its results for the fourth quarter after the closing of the American market on Wednesday at 4:05 p.m. (French time). CEO Mark Zuckerberg and Financial Director Susan Li should discuss results at a conference on profits at 5 p.m. (East time).
Participants in the market provide a significant fluctuation in the META action after publication of the results, according to the options market, with an implicit movement of 7.5 % in one or the other direction. The shares fell 4.3 % after the last report on results in October.
Source : InvestingPro
The profits estimates have been revised upwards 26 times in recent weeks, according to an investing professional survey, with only three downward revisions, which reflects the growing optimism concerning Meta’s profits.
Analysts expect Meta to record an annual increase of 26 % of its profit per adjusted share (BPA), to 6.73 dollars, and an increase of 17 % of its turnover, to 47 billion dollars , for the quarter which ended in December. These impressive figures are explained by the importance of advertising revenues and by the innovation efforts deployed by the company to develop its capacities in terms of artificial intelligence (AI).
The company announced in advance that it planned to spend between 60 and $ 65 billion on investment expenditure in 2025 to advance its strategic investments in AI, including new cutting -edge data centers technology.
In the future, I think that Meta’s forecasts for the current quarter will exceed consensus estimates, because the company collects the fruits of the expansion of its user base, its new initiatives in terms of AI and of his new monetization paths.
The emphasis on Meta on the expansion of its AI infrastructure not only improved the effectiveness of its advertising targeting capacities, but also strengthened its product ecosystem, including Facebook, Instagram, Messenger, Reels, Threads and Threads and Threads Whatsapp.
Source : Investing.com
The Meta action reached a record peak of $ 652 on Friday before ending at $ 647.49, above the previous record of $ 636.45 reached the day before. At the current level, the company based in Menlo Park, California, has a market capitalization of $ 1.63 trillion, making it the sixth largest company listed in the United States.
The shares gained 10.6 % at the start of 2025, after having recorded an annual increase of 65 % last year.
-As InvestingPro points out, Meta has an excellent financial health score of 3.4 out of 5, supported by its impressive prospects for growth in profits and income, as well as by robust gross beneficiary margins and high profitability of equity.
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Actions for sale: Apple
On the other hand, Apple, the largest consumer electronics company in the world, is in a more precarious position due to lower than expected demand for iPhone 16 and more general challenges of the electronics market general public.
Apple’s results for the first tax quarter should be published after the closing of the market on Thursday at 4:30 p.m. (East time), in what will probably be one of the most followed reports of the week. A conference call with the CEO Tim Cook and the financial director Kevan Parekh is scheduled for 5 p.m. (East time).
The movement expected on the options market is around 4.6 % upward or downward. The shares dropped by 3.1 % after the publication of the company fourth tax quarter at the end of October.
Source : InvestingPro
Stressing several short -term contrary winds which Apple faces in the current climate, 11 of the 17 analysts interviewed by InvestingPro have lowered their income forecasts in the last 90 days.
While the company should display a profit per share of $ 2.35 for a turnover of $ 124.09 billion for its last quarter, signs of a drop in iPhone demand – especially in China – arouse concerns about Apple’s growth trajectory.
Analysts are also concerned about the slowdown in the adoption and marketing of AI by Apple, which could weigh on the future innovation of products.
To add to uncertainty, Apple forecasts for the current quarter should be disappointing, Wall Street expecting weak growth in turnover and profits.
Source : Investing.com
AAPPL Action closed $ 228.78 on Friday, not far from a recent four months of $ 219.38 reached on January 21. Actions, which test their mobile average at 200 days, are down 11 % to start the new year.
At its current value, Apple has a market capitalization of 3.35 billions of dollars, making it the second most precious company in the American stock market after Nvidia (Nasdaq :).
It should be mentioned that despite its relative underperformance, AAPPL remains extremely overvalued according to the models of fair value of InvestingPro, which indicate a potential drop of -15.5 % to around $ 188/action.
In addition, Apple currently has a 2.6/5 InvestingPro financial health score, highlighting the slowdown in profits and sales growth. In addition, the action is negotiated to high multiple multiple profits and income.
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Disclosure: As I write these lines, I have a long position on the S&P 500 and via the SPDR® S&P 500 ETF (SPY) and the Invesco QQQ Trust ETF (QQQ). I am also a long time on the Investco Top QQQ ETF (Qbig), the S&P 500 Equal Weight ETF (RSP), and the Vaneck Vectors Semiconductor ETF (SMH).
I regularly rebalance my portfolio of individual and ETF shares on the basis of a permanent assessment of the risks linked to the macroeconomic environment and the financial situation of companies.
The opinions expressed in this article only engage the author and should not be considered as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv For more analyzes and views on stock markets.
