Tech earnings steer market next few months Jim Cramer

This week’s earnings from major tech megacaps — namely Amazon, Alphabet, Apple, Microsoft and Meta — are vital to the market’s performance over the next few months, CNBC’s Jim Cramer said on Monday.

“We know that the market’s direction for the next couple of months will be defined by the results we get this week,” he said. “You cannot mount a sustained advance if you lose these companies. Nothing can make up for them. Yes, the stakes really are that high.”

These stocks, along with their Magnificent Seven peers Nvidia and Tesla, account for almost 35% of the S&P 500, Cramer said. He added that “by virtue of their breadth of products, they represent the best we have in this country and in the world,” and he said he can make a case to own any of these companies regardless of their earnings this week.

He reviewed what he’s expecting from these giants, starting with Alphabet, Microsoft and Meta, which are set to report on Wednesday. While all three of these companies are tech names, he noted that their business has branched out into multiple areas.

Cramer suggested he’s interested in Google’s lucrative advertising business, especially related to its YouTube and search arms. But to Wall Street, he added, Google’s most important sector is its cloud business which has “been on fire” recently. Cramer also mentioned the company’s investment in nuclear power and its quantum computing venture.

Meta needs to share metrics including the number of daily users across its platforms, as well as average revenue per person, Cramer suggested. He also said he wants to hear “an upbeat, stern Zuckerberg who talks about his competitive advantage in AI and power,” strength in the advertising business, as well good updates about the artificial intelligence glasses.

Cramer said Microsoft is in a “tough spot,” because it’s “basically become an enterprise monopolist.” He said he cares about growth in the company’s Azure business, adding that he wants to hear positive commentary from the company’s CFO, Amy Hood.

Amazon and Apple are set to report on Thursday, and Cramer said the most important aspect of the former’s quarter is its web services division. He said he wants to hear that Amazon is working with Nvidia to develop new chips that can help AWS attract new customers, adding that the hopes the company’s big outage didn’t cause too much damage.

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Cramer said he cares about the reception of Apple’s new iPhone 17, saying the stock could see a boost if sales are accelerating in China and the U.S. He also said he hopes other hyperscalers want to pay Apple to become its default AI system — similar to the deal Apple currently has with Alphabet to make Google its preferred search engine.

“When you have stocks with market capitalizations that are larger than some country’s GDPs, you can’t ignore them,” Cramer said.

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Disclaimer The CNBC Investing Club holds shares of Amazon, Apple, Nvidia, Meta and Microsoft.