Investor Bryn Talkington said Monday there are two elements she is watching this week as major tech-related companies report earnings: ad revenue and discussions around artificial intelligence. This week will see some of the larger tech firms on Wall Street report quarterly results, including Microsoft , Google-parent Alphabet , Amazon and Meta . Talkington said the key for for Alphabet and Meta will be in their ad revenue, as that comprised a chunk of each company’s top line. Getting a clearer look at Google’s ad revenue will also give investors a sense on how well companies are doing, she said. She added that advertising is also crucial to Meta, making up 98% of the company’s revenue. On Microsoft, Talkington thinks the conversation will remain focused on artificial intelligence and the prominence of OpenAI’s ChatGPT, while the company could benefit from a weaker dollar. “I think that like Apple, who last quarter had a tailwind from FX because the dollar was strong, the dollar [now] weakening should also be very creative to Microsoft,” Talkington, managing partner at Requisite Capital Management, told CNBC Pro. Meanwhile, Talkington thinks Amazon is “a bit more of a harder tell,” especially since the company has traded lower eight times out of ten after reporting quarterly results. “I think unlike Meta, that’s come in and said, ‘we have efficiency, layoffs, efficiency, layoffs,’ Amazon is very different workforce [and] is still grinding through all of that spend they did, so I’m not sure … how the market will react to their earnings. But, if history is any guide, I would say it’s to the downside,” she said. Check out the full video for more.
