Wolfe sees solid earnings season despite tech stock concerns

Investing.com -- Wolfe Research said Tuesday that the current earnings season has delivered strong results from financial, industrial, and healthcare companies, even as technology stocks face investor concerns.

The firm noted that last week's earnings from Alphabet and Intel were solid but received limited investor attention as focus shifted to rising oil prices and their impact on Federal Reserve rate hike expectations.

Meta Platforms (NASDAQ: META) and Microsoft (NASDAQ: MSFT) are scheduled to report second quarter 2026 earnings results Wednesday, followed by Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) on Thursday.

Wolfe observed that mega-cap technology companies have shown weak price performance this quarter, with only one of five companies that reported - Micron Technology (NASDAQ: MU) on June 24 - outperforming the S&P 500 the day after earnings.

The firm attributed the lackluster stock performance to investor concerns about artificial intelligence spending rather than fundamental results. Wolfe stated that while these companies offer strong growth at reasonable valuations, investor worries about capital expenditure levels need to decrease before the stocks respond positively to quarterly results.

Wolfe expects the earnings season to produce solid results from S&P 500 companies overall.

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