Breakfast News: Mag 7 Earnings Take Center Stage

Breakfast News: Mag 7 Earnings Take Center Stage

April 27, 2026

Source: Image created by Jester AI.

1. Mag 7 Results Loom Large This Week

Breakfast News on Mondays always looks to preview what’s coming up. This week, the continuation of Magnificent 7 first-quarter earnings season makes the headlines. Amazon (AMZN +0.55%) is one of four reporting Wednesday. As Senior Vice President of the Rule Breakers franchise Brian Richards noted this month, Amazon is acquiring Globalstar (GSAT +0.75%), in “a move aimed squarely at competing with Starlink’s 10,000+ active satellites.”

• Ramping up AI competition on all fronts: Alphabet (GOOG +0.41%) is also due to post a Q1 update Wednesday, after last week revealing plans to invest up to $40 billion in AI start-up Anthropic. Combined with its new AI tensor processing units revealed last week, Alphabet is challenging Nvidia’s (NVDA +1.73%) dominance too.
• The rest of the best: Meta (META 1.18%) also reports the same day, as does Microsoft (MSFT 1.33%) – currently a defendant in Elon Musk’s legal case against OpenAI, which opens today in the U.S. District Court for the Northern District of California. Apple (AAPL +2.08%) concludes the Mag 7 week Thursday, after having named John Ternus as new CEO to replace Tim Cook on September 1.

2. China Blocks Meta’s $2B Manus AI Deal

Meta faces a significant hurdle in its autonomous AI roadmap after China’s National Development and Reform Commission ordered the tech giant to unwind its $2 billion acquisition of Singapore-based start-up Manus. Beijing cited national security and illegal tech transfer concerns, effectively prohibiting foreign investment in the “agentic AI” leader, which was founded in Wuhan before relocating to Singapore. The intervention underscores a narrowing path for “Singapore-washing” – where Chinese start-ups move offshore to dodge geopolitical scrutiny – and leaves Meta searching for alternatives to Manus’s highly touted autonomous agents, which had reportedly reached $100 million in annual recurring revenue before the deal.

• Tech drain crackdown: The block follows reports that Chinese authorities restricted Manus’s co-founders from leaving the country, highlighting Beijing’s aggressive new stance against the hollowing out of its domestic AI talent pool.
• **Autonomous ambitions stalled: **Manus’s tech is central to Meta’s goal of moving beyond chatbots to AI “agents” that execute complex tasks; without it, Meta may fall behind in a race currently led by Microsoft and Alphabet.

3. What’s Next After Last Week’s Surge?

With markets still rattled by daily uncertainty over the Iran conflict, the S&P 500 ended last week up 0.5%, with the Nasdaq gaining 1.6%. The off-again status of the latest round of talks helped push S&P 500 and Nasdaq futures down this morning – but both by less than 0.1% in early trading.

• Powell’s last stand: The Federal Reserve meets Wednesday to set interest rates, with Jerome Powell as chair for probably the last time – after Sen. Thom Tillis said he’ll support Kevin Warsh’s appointment following the Justice Department’s dropping of a criminal investigation against Powell. The chance of an interest rate change appears slim, with the CME FedWatch tool rating it 99.5% against.
• Inflation expected to rise: Thursday brings us the March Personal Consumption Expenditures (PCE) print, expected to rise to 3.5% year over year (YoY), from 2.8% in February. The Core PCE figure – which excludes volatile energy and food, and is the Fed’s preferred measure – is predicted at 3.2% YoY. A Q1 GDP update is due the same day.

4. Pick of the Week’s Stock Advisor Earnings

• Starbucks (SBUX +0.63%) reaches second-quarter time Tuesday, the first results since the company – recommended by both Team Hidden Gems and Team Rule Breakers – unveiled detailed recovery plans at January’s investor day.
• Spotify (SPOT 2.17%) – also recommended by both Team HG and Team RB – reports Q1 the same day, after strong user and subscriber growth helped push operating income up 47% in the previous quarter.
• Visa (V 0.77%) and Mastercard (MA 1.09%) – both SA recs from Team Hidden Gems – report this week. Visa’s Q2 update is due Tuesday, following a 15% rise in earnings per share YoY in Q1. Mastercard presents Q1 figures Thursday, after an 18% revenue rise in fiscal 2025 Q4.

5. Pick of the Week’s Stock Advisor Earnings

• Roblox (RBLX 6.57%) – recommended in Rule Breakers – reveals its start to fiscal 2026 Thursday. The online gaming platform reported 43% revenue growth in its previous quarter, but expects net losses to continue into fiscal 2026.
• eBay (EBAY +1.18%) – beating the S&P 500 by 54% since the March 2024 Dividend Investor rec – reports Wednesday, after CFO Peggy M. Alford spoke of “a deceleration in our cross-border volume growth due to U.S. trade policies” in the company’s Q4 earnings call.
• Domino’s Pizza (DPZ 2.72%) reported Q1 earnings this morning, with CEO Russell Weiner calling it “another quarter of positive order count and market share growth for Domino’s in the U.S.” Global retail sales grew 3.4%, with income from operations up 7.9% – excluding positive foreign exchange effects. Domino’s has raised its dividend for 14 consecutive years.

6. Your Take

How much of your portfolio is in Magnificent Seven stocks? Are you comfortable with that allocation, or thinking about adjusting it?

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