Wall Street icon predicts surprise earnings week winner | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Investors are getting ready for a high-stakes week as many leading tech companies prepare to report earnings for Q1 2025. After a difficult start to the year for the sector, questions abound as to what these upcoming results will reveal.

Much of the negative energy that has pushed down tech stocks lately has been due to the tariffs imposed by the Trump administration that have sparked significant economic uncertainty. Additionally, the launch of Chinese artificial intelligence (AI) startup DeepSeek’s R1 model has made some investors skeptical that the AI and chip market booms will continue.

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Most members of the Magnificent 7, the group of industry-leading tech companies responsible for most of the sector’s growth, ended last week in the red after a difficult month.

But one expert believes that a turnaround is coming for one member of the group, who sees it as being primed for a comeback after a difficult two quarters.

Many top tech stocks have been trending downward lately, but a noted investor believes one Magnificent 7 favorite is poised for a turnaround.

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Noted investor has picked the earnings week surprise winner

Over the past few weeks, many analysts have reduced their price targets on leading tech stocks, citing high economic uncertainty and tariff-driven supply chain problems. Even Daniel Ives, one of the market’s most notorious Tesla stock bulls, has scaled back his prediction for the electric vehicle (EV) producer.

However, one expert isn’t so concerned as earnings week quickly approaches. Louis Navellier, Chairman and Founder of investment firm Navellier & Associates, is known for his detailed market commentary. In a recent edition of his Daily Market Notes, he laid out his take on the upcoming week.

While Navellier acknowledged that weakness in the tech sector had dragged indexes into the red by modest amounts, he advised them to rest up, adding that “next week is a huge earnings week.”

Navellier shared further context with TheStreet, revealing that he believes Alphabet (GOOGL) is poised to report strong earnings, primarily due to one key factor. Since the year began, the top tech stock has fallen almost 20%, putting it in a similar category to most of its Magnificent 7 peers.

But Navellier thinks this may be about to change, even after the U.S. Department of Justice’s (DOJ) surprise victory in its antitrust case against Google, which is scheduled to report earnings on Thursday, April 24.

“Google’s sales are forecasted to rise 10.7%, while its earnings are forecasted to grow 7%,” he states. “GOOG does not provide guidance, but has a decent earnings surprise history. Of course, Google is still dealing with the DOJ’s victory to split up the company. As always, if Google surprises and posts good advertising revenue, all will be forgiven, and the stock should rally.”

While Google reporting strong ad sales growth might be surprising to some, Navellier predicts that is exactly what will happen. “Based on the strong March retail sales report, which was the strongest in two years, Google’s advertising should be rising,” he adds.

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He highlights Netflix’s (NFLX) recent earnings beat, noting that the streaming giant revealed its advertising revenue had improved, despite that being a new growth driver for the company.

“Since Google is the online advertising king, I suspect that they will announce better-than-expected advertising revenue,” he predicts.

Will Google bounce back during Q1 earnings week?

Given how much GOOGL stock has struggled during the past quarter, a strong earnings report this week would come at a highly opportune time.

On top of the general market volatility that has pushed it down, the recent DOJ ruling has further called Google’s growth prospects into question, as the ruling could result in the company being broken up.

It’s true that Google has challenged the recent decision from U.S. District Judge Leonie Brinkema, who found the company liable for “willfully acquiring and maintaining monopoly power” in both publisher ad services and ad exchange markets. How long that process will take is unclear.

But it is unlikely any updates will be provided before Google reports earnings on April 24. Therefore, Navellier’s forecast — that if Google reports strong advertising revenue, shares will surge — seems a likely outcome.

According to Statista, “During the examined year, 77.8 percent of Google’s revenue came from advertising on Google properties and YouTube.”

Those numbers indicate that if Google can show improving ad revenue, it is likely to reverse course and start rising, as Navellier predicts. And as he notes, Netflix’s strong ad revenue should be encouraging for Google investors.