Bank of America says buy now as key tech stocks prepare for earnings surge

In the United States, Bank of America has recently released a report recommending investors to purchase shares of several technology companies as they prepare for impending earnings reports. Among the companies highlighted are Block, Spotify, PayPal, and Microsoft, which have all faced fluctuating stock prices this year. On May 1, Block is set to release its first-quarter earnings report, with analysts expressing confidence in its business model and operating expense discipline despite a 31% decline in stock value for 2025. Furthermore, Bank of America has reiterated its buy rating for Microsoft, stressing its strong position in the ongoing AI cycle and the importance of Azure guidance in upcoming financial disclosures. As Microsoft approaches its earnings announcement on April 30, analysts are closely watching how the company's capital expenditure and Azure guidance will impact stock performance. This year, Microsoft’s shares have experienced a 7% dip, but confidence remains high in its long-term growth potential. The report encourages investors to remain steady amid short-term fluctuations and highlights the overall resilience of these technology firms in the face of market uncertainties. Additionally, Roblox is noted for its innovative approaches and increasing market share among tech companies. It is recognized as a less commonly held stock, suggesting there may be an investment opportunity for those seeking growth outside of more mainstream investments. Analysts predict that Roblox's performance in 2024, characterized by efficiency improvements and growth surprises, will further solidify its reputation and investor interest. In conclusion, the publication emphasizes a proactive strategy for investors to consider acquiring shares of these notable tech stocks as earnings season nears, leveraging on their proven performance attributes and resilience in the rapidly changing technology landscape.