The Q1 2025 earnings season is heating up, and investors are on edge. FactSet pegs the S&P 500’s blended earnings growth at 7.2%, a decent clip. But dig deeper, and the plot thickens: the “Magnificent 7” tech titans are expected to lag, while the other 493 companies carry the torch with stronger growth compared to 2024. This week, Snap, Starbucks, Spotify, Grab, and Qualcomm take the stage. Will they dazzle or disappoint? Let’s break it down with expectations, sentiment, and a few picks to watch.
The Big Picture: A Shifting Market
A 7.2% growth rate sounds promising, but the split between the “Magnificent 7” and the rest of the S&P 500 hints at a broader shift. The tech giants that once powered the market are cooling off, while smaller players in diverse sectors—like consumer goods, tech peripherals, and emerging markets—are flexing their muscle. This could mean undervalued opportunities are ripe for the picking, but global headwinds, like U.S.-China trade friction, keep the mood cautious.
So, how do Snap, Starbucks, Spotify, Grab, and Qualcomm fit into this? Here’s my take.
The Contenders: Who’s Hot, Who’s Not?
Snap ( $Snap Inc(SNAP)$ )
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What to Expect: Snap’s been stuck in a rut. Q1 2025 earnings are likely to show sluggish ad revenue growth, hampered by competition from Meta and TikTok. User engagement is there, but the cash isn’t following.
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Verdict: Bearish. Snap’s a tough sell until it proves it can turn its audience into profits. Risk outweighs reward here.
Starbucks ( $Starbucks(SBUX)$ )
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What to Expect: Rising costs—for labor, coffee beans, you name it—are squeezing margins. Yet, Starbucks’ loyal base and global footprint might cushion the blow. Q1 2025 could be a coin toss.
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Verdict: Neutral. I’m on the fence—resilience is possible, but a miss wouldn’t shock me. Watch closely.
Spotify ( $Spotify Technology S.A.(SPOT)$ )
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What to Expect: Spotify’s betting big on podcasts and premium subscribers. Q1 2025 should show revenue gains, though profits might stay elusive as they pour cash into content.
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Verdict: Bullish. Their grip on audio streaming and growth potential make them a winner in my book.
Grab $Grab Holdings(GRAB)$
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What to Expect: Southeast Asia’s rising star is diversifying—ride-hailing, food delivery, fintech. Q1 2025 could spotlight double-digit growth as the region’s digital economy booms.
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Verdict: Bullish. Grab’s multi-pronged approach and market position scream upside. A gem worth tracking.
Qualcomm ( $Qualcomm(QCOM)$ )
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What to Expect: 5G and AI chip demand are Qualcomm’s rocket fuel. Q1 2025 earnings should shine, with strong sales and margins in a hungry semiconductor market.
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Verdict: Bullish. Qualcomm’s tech leadership makes it a standout. This one’s got legs.
Quick Comparison: Earnings Expectations
Earnings Growth Face-Off: The Visual
Here’s a bar chart pitting these companies’ hypothetical earnings growth against the S&P 500’s 7.2% benchmark:
Qualcomm and Grab soar above the pack, while Snap trails. Spotify’s no slouch either.
My Picks and Predictions
This earnings season’s a rollercoaster, but opportunities are lurking. Qualcomm and Grab top my watchlist—both are riding megatrends (5G/AI and Southeast Asia’s digital surge) with solid fundamentals. Spotify gets a nod for its growth story, though patience is key. Snap? I’d steer clear unless you’re a gambler. Starbucks sits in limbo—could go either way.
The S&P 500’s 7.2% growth masks a tale of haves and have-nots. With the “Magnificent 7” taking a breather, the spotlight’s on companies like these to prove their mettle. Volatility’s guaranteed, but so is the chance to snag a winner.
What’s your play? Are you riding Qualcomm’s wave or betting on a Starbucks rebound? Sound off below—I’m all ears!
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