• Magnificent seven start to report earnings as Wall Street hovers near all-time high
• Q3 earnings from Netflix, Tesla, and Amazon are on the weekly agenda

Wall Street has been on fire recently, reaching new heights as the earnings season for Q3 kicked off with a bang, with investors cheering on bank profit beats and China's fresh fiscal spending announcement fueling more optimism across the board.

Taiwan Semiconductor Manufacturing Co reported record earnings, helping to cushion the blow from ASML’s disappointing 2025 guidance but there might be more volatile episodes in stock markets as the tech earnings extravaganza starts soon. 

Netflix

Netflix is set to unveil its Q3 financials today after the market closes. The streaming giant's stock has doubled to a historic high above $700, solidifying its place among the top 10 performers on the Nasdaq 100. Analysts anticipate another stellar report, with the consensus recommendation from LSEG analysts being currently a "buy", suggesting that they are anticipating another stellar report.

Revenue is expected to rise to $9.6 billion, marking a 14.3% year-on-year increase from $8.5 billion in Q3 2023. Earnings per share may nudge up from $4.88 to $5.12, though annual growth could be softer at 37.16%. The ad tier, just two years old, is expected to shine, with a forecasted 100% growth to $276 billion this year and it might even hit $900 billion by the end of the year.

Subscriber numbers will be crucial, especially with Netflix planning to end regular updates in 2025, and any hints of price changes could sway the stock. Keep an eye on Netflix's valuation—its P/E ratio of 31, which makes it expensive and in the same league as Amazon and Apple, and therefore sensitive to any negative signals.  

Tesla

Tesla's robotaxi event left investors with more questions than answers about timelines and regulatory hurdles, letting the stock drop by 8%. Q3 earnings report due next Wednesday may not bring the relief investors seek either.

Revenue is projected to dip slightly to $25.3 billion but still show an 8.4% year-on-year increase. EPS may come out at $0.58, marking its fifth month of negative growth. 

In other metrics, gross profit margin could disappoint, with a slight annual decline. Yet, as the stock hovers near its protective 20-week moving average, it would be interesting to see if Tesla's guidance for 2025 could provide a much-needed boost. 

The average consensus recommendation from LSEG analysts is hold.

Amazon

Amazon could not print fresh record highs nor could it achieve top spots on the S&P 500 and Nasdaq 100 indices as AI-related stocks thrived, posting a regular year-to-date growth of 22.5%. 

Total revenue may grow by a modest 9.8% to $157 billion when the Q3 earnings report is published next Thursday. However, its web services are anticipated to soar, with a projected 19% increase to $27.4 billion - the highest since the end of 2022. Earnings per share could slip to $1.14, reflecting a tepid annual growth of 21.5%.

With Amazon venturing into nuclear reactors to bolster its AI initiatives, investors will be eagerly awaiting the company's outlook.