Microsoft Corp. ( MSFT - Get Report) is a 20% upward move away from getting to a market cap of $1 trillion. It's not going to happen Wednesday after the closing bell when Microsoft reports earnings, but it could inch closer (Apple Inc. ( AAPL - Get Report) hit that level in August). Analysts are expecting the software giant to report revenue of $27.9 billion, and adjusted earnings of 96 cents a share. A note from Goldman Sachs pointed out that gross margins on Microsoft's maturing Azure cloud revenue segment could expand. As Azure reaches scale, it could contribute a total of $3 billion to gross profit for the company's fiscal 2019.
With short-seller Andrew Left of Citron Research going long on Tesla Inc. ( TSLA - Get Report) , investors should at least raise an eyebrow. Tesla reports earnings after the closing bell Wednesday. Analysts are expecting $6.32 billion of revenue and an adjusted loss of 3 cents a share. Left noted that Tesla was dominating the electric vehicle space with 8,000 Model S deliveries in the third quarter, with the runner up, the Lexus LS, delivering 2,303 deliveries. Rising competition from Chinese electric vehicle maker Nio Inc. ( NIO) , and major automakers like Volkswagen ( VLKAY) pose a threat to Tesla, but for now Tesla seems to be the favored electric car among consumers.
But what matters is that Tesla hasn't proven to be profitable. Left said in a note he thinks it will soon be profitable, but didn't offer a reason as to why. We've got to be skeptical.
Ford Motor Co. ( F - Get Report) will report earnings after Wednesday's closing bell. Ford is another carmaker pivoting toward software for its next chapter in its business life, so we'll see if management provides comment or a time table for those developments. Amazon.com Inc. ( AMZN - Get Report) will report earnings after the closing bell Thursday. Dunkin' Brands Group Inc. ( DNKN - Get Report) (one of my favorite companies to cover) will report before the opening bell on Thursday as well. I'll be sure to have plenty to say about that report.