Anticipating Positive FAANG Earnings with ‘TQQQ’ | ETF Trends

With earnings reporting in full swing, markets have their eyes turned to the big movers as Apple, Google, Facebook, Amazon, and Microsoft are due to report this week. With earnings reports enthusiastically positive overall, many are looking to grab a piece of the earnings pie as inflation fears continue to float in the background. InvestorPlace broke down expectations for each of the major players.

Tesla reported record earnings yesterday, with more than $1 billion in net income, up ten times year over year, reports CNBC. Revenue was a reported $11.96 billion, far exceeding the expected $11.3 billion.

Reporting July 27th

Apple (AAPL) is due to report today, July 27th, with expectations high for a strong quarter. Forecasted quarterly sales are $72.8 billion, a 22% year-over-year growth.

Microsoft (MSFT) is also due to report earnings today, with expectations equally high for strong earnings in the last quarter. Revenues for the last quarter are expected to be $44.07 billion, a 16% YOY growth. Microsoft’s stock has shown impressive growth, rising almost 30% year-to-date compared to the 14% growth of the Nasdaq exchange overall.

Alphabet (GOOGL), the parent company of Google, reports today as well, with investors watching to see how earnings fared against the antitrust issues that the company has been facing of late. Despite fines imposed by the French government 30 U.S. states suing over the app store, GOOGL stock has continued performing strongly, with the price up almost 50% year to date.

Reporting July 28th

Facebook (FB) reports earnings on July 28th and is anticipated to be high with the recent antitrust case against the corporation dismissed by the FTC. When the case was dropped, stocks soared over the $1 trillion market cap mark for the first time. Analysts expect revenue to be $27.82 billion for Facebook, with stocks currently up 34% year to date.

Reporting July 29th

Amazon (AMZN) will be reporting for the first time with its new CEO, Andy Jassy, at the helm, and there is an anticipation of slowed sales as consumers return to in-person shopping. Analysts expect another $100 billion reporting quarter, though, with sales from Prime Day included in this quarter. Expectations are currently at $115 billion for the last quarter.

TQQQ Offers Leveraged Daily Returns within the Nasdaq 100 Index

With most of the tech giants of the Nasdaq exchange expecting positive earnings this week, the Index stands poised for positive performance.

The ProShares UltraPro QQQ (TQQQ) is a leveraged ETF that seeks a 3x return on the daily performance of the Nasdaq 100 Index before fees and taxes.

The exposure resets daily, and as such, does not provide a simple 3x multiplier on the return of the underlying index.

As such, TQQQ should be monitored at least daily by investors.

As a leveraged fund, TQQQ carries greater risks than non-leveraged benchmarked funds.

If the fund is held over a period of time longer than a single day, and the underlying Nasdaq-100 index remains trendless, oscillating without establishing a clear upward or downward trend, TQQQ can lose money.

However, in times of a clear upward trend, TQQQ can outperform the index due to compounding.

TQQQ has an expense ratio of 0.95% with a contractual waiver that ends 9/30/21.

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