Zavier Wong, market analyst at eToro, shares his three things to watch in Australia in the coming days.
Earnings - Apple, Microsoft, Meta and Tesla
Big Tech earnings take centre stage this week, with Apple, Microsoft, Meta and Tesla all reporting as investors weigh the payoff from a new wave of AI investment. There’s no doubt that a significant number of local investors will be watching these earnings closely, as all four companies are currently among the top 10 most held stocks on the eToro platform in Australia. Capital spending across Big Tech is now expected to rise around 47% in 2026 to roughly USD$630 billion, putting greater focus on execution and returns. All four names could do with solid results, having underperformed the S&P 500 over the past year.
Tesla heads into earnings after a weak fourth quarter, with deliveries down 16% year on year and full-year volumes falling 9%. The key focus will be on how softer demand and pricing pressure flowed through to margins. Beyond the near term, investors are likely to look ahead to Tesla’s longer-term AI and autonomy ambitions, including progress on Full Self-Driving, Cybercab and Optimus. Energy storage remains a bright spot after record deployments in the December quarter.
Meta heads into the quarter trading at the cheapest valuation among its Mag 7 peers, and its results will shine a light on how effectively it is monetising its heavy AI investment. While its AI-powered recommendation systems have lifted ad pricing by around 10% or more, its consumer-facing AI products still lag rivals like ChatGPT and Gemini, which keeps longer-term monetisation uncertain. Cost control will also be in focus, with expenses expected to grow 24% to 26% in 2026 and capital spending set to rise sharply as Meta builds out AI infrastructure. Investors will be watching for updates on Meta’s push towards so-called superintelligence, after the company recently confirmed its new AI team has delivered its first key internal models.
Microsoft’s earnings will be closely watched for signals on AI-driven growth and spending. The company appears well-positioned to lead large tech as capital investment ramps across the sector. Big tech capex is growing at a considerable rate, and Microsoft is likely at the forefront following recent AI-related deals and partnerships. Investors will be focused on how this spending translates into Azure growth and continued monetisation.
Apple’s earnings are likely to draw close attention, with investors looking for signs that momentum is improving. The focus will be on iPhone demand, margins and the growing importance of Services. iPhone growth is expected to pick up after last quarter’s supply constraints pushed some demand into this period. Services growth will also be in focus, as it remains Apple’s key long-term driver of profitability and earnings resilience.
AU monthly CPI
In Australia, all eyes turn to this week’s quarterly CPI print, which will be a key piece of the puzzle for the RBA ahead of its February meeting. Inflation is still expected to sit above the RBA’s 2% to 3% target band, even as price pressures appear to be easing. Headline CPI is set to rise around 0.7% over the December quarter, taking annual inflation to roughly 3.2%. Monthly data suggests prices have cooled since a strong third quarter, but underlying inflation pressures remain sticky.
Easing inflation would support the case for keeping rates on hold, but any signs of persistent price pressures, combined with a resilient labour market, would keep the door open to a rate hike in the first half of 2026.
Fed rate decision
The US Federal Reserve is widely expected to leave interest rates unchanged this week, as policymakers assess a mixed but improving inflation backdrop. After pushing higher in mid-2025, inflation has begun to retreat, and recent data suggest there is no sustained re-acceleration in price pressures.
The latest CPI report arrived broadly in line with expectations, though the picture remains uneven. Food inflation recorded one of its strongest readings in the past year, continuing to pressure household budgets. However, services inflation, which makes up the largest share of the inflation basket, is gradually easing.
Beyond inflation, recent US data has shown the economy remains resilient. A still-solid labour market and steady consumer spending are giving the Fed room to remain patient
For investors, a pause looks almost nailed on. Markets have remained relatively resilient despite a busy macro backdrop, and attention is likely to shift towards the start of a busy earnings season and more geopolitical tensions for market direction.