AAPL & META – Big Tech Being Put to the Test
Updated Updated Thu, 2025 July 24 04:36
Ahead of AAPL and META earnings calls, financial markets are clearly on the edge to validate the outperformance in Big Tech so far. Technology stocks have been the leader that guided U.S. equities to YTD highs this year, with the NASDAQ outstripping the S&P 500 in terms of YTD performance so far. Many are questioning whether the tech story is truly in its nascent stage, or if it has already run its course. Valuations are stretched at the moment, and particularly strong earnings from tech leaders like AAPL and META will be necessary to shift sentiment back into strongly bullish territory.
Apple’s recently released Q2 FY 2025 results beat estimates, with $95.4 billion in revenue (+5% YoY) and EPS of $1.65 (+8% YoY). However, broader macroeconomic forces and volatility could be a bane for Apple. Possible drag from $900 million in tariffs, and iPhone unit growth risks amid the pre-launch lull for the iPhone 17 could be a hit to the tech leader’s performance this year as Trump’s tariff tantrum materialises.
On the other hand, Meta set the tone early in Q1 earnings season, delivering 37% EPS growth and ~16% YoY revenue to about $42.3 billion, beating expectations. Trading surged post-earnings, fueled by M&A and ad-cycle strength, plus optimism around AI investments across Reality Labs and ad targeting. Owing to its focus on mostly software instead of hardware products, Meta could still ride the AI wave with fewer short-term hits from tariffs.
Apple’s Bullish Turn Means Price Could Still Trade Higher
Markets will be closely analysing commentary around tariff impact and AI integration (Siri/Siri Intelligence). The next earnings beat could spark another relief rally, but guidance light and tariff warnings might send the stock lower.
AAPL is now holding above the Ichimoku cloud, 50-EMA, and ascending trendline support after trading below these indicators a few months earlier. This could mean a bullish pivot is in play, where price could push higher towards the $225.50 resistance, in line with a Fibonacci confluence zone, and the $247.50 swing high resistance.
However, should the price break below the $206.50 support, in line with the 38.2% Fibonacci Retracement and 78.6% Fibonacci Extension, we could see a further leg to the downside where the price could move towards the $193.50 support level, in line with the 61.8% Fibonacci Retracement level.
Meta’s Bullish Momentum Continues Pushing Price Higher
Meta’s next earnings release is scheduled for July 30th after market close. Consensus EPS forecasts ticked slightly higher recently from $5.74 to $5.78, with revenue expected near $44.5 billion. Markets will be watching if earnings confirm strength in advertising and AI product monetisation, which would further support bullish momentum.
META has been on a strong bullish move towards the upside, as the price continues to trade above the 50-EMA and Ichimoku cloud. As the price retraces slightly, we could see a bounce at the $679.50 support, in line with the 50-EMA and the 23.6% Fibonacci Retracement level. Sustaining its bullish momentum could see the price push higher towards the $585 swing high resistance and $780 resistance as well.
However, a deeper retracement could see the stock price trade lower towards the $626.50 support, in line with the 50% Fibonacci Retracement, at which point bullish momentum may have taken a pause.
Keep a look out for both AAPL and META earnings, not just for the release, but also for commentary from each individual company’s leadership, for a better view of their expectations going into a volatile macroeconomic environment.
