MarketBeat Week in Review – 07/20- 07/24

Interested in Oracle Corporation? Here are five stocks we like better.

Stocks fell broadly this week as U.S.-Iran tensions, heavy AI capital expenditure concerns, and light summer trading volume pushed investors toward value over growth.

Earnings season has largely beaten expectations so far, with 88% of reporting S&P 500 companies posting positive EPS surprises, though CapEx guidance from Magnificent 7 firms remains a key market driver.

MarketBeat contributors covered a wide range of stocks and ETFs this week, alongside sector plays in photonics, cybersecurity, memory, and shipping.

Stocks were down broadly this week as investors chase value over growth. There are plenty of factors that support that strategy. The conflict between the U.S. and Iran has intensified. Investors are finding it hard to look past the massive capital expenditure (CapEx) being poured into artificial intelligence. It's also summer, which is historically a time when stocks make big moves on lighter volume.

On a brighter note, earnings season has been largely as advertised. According to FactSet, as of July 17, out of the 10% of S&P 500 companies that had reported, 88% reported a positive earnings per share (EPS) surprise and 85% reported a positive revenue surprise.

That's likely to continue when four of the Magnificent 7 report earnings next week. However, that's not the only thing moving the market. Next week, the Federal Reserve will announce its latest interest rate decision. Rates are likely to remain unchanged, but investors will be looking for any clues about potential rate hikes.

Oracle Corp. (NYSE: ORCL) has become the face of the debate on which companies, if any, can afford the AI buildout. S&P Global Ratings downgraded Oracle's credit rating to BBB on concerns over the company's negative free cash flow. Sam Quirke explained why the problem isn't unique to Oracle, and why it's taking the brunt of the backlash.

Quirke also explained why a similar CapEx story is emerging with Tesla Inc. (NASDAQ: TSLA). The company missed on earnings expectations, but it was the company's forecast for CapEx that had investors dumping their shares.

→ Microsoft Earnings Are Coming—But Azure and CapEx Will Decide the Reaction

Apple Inc. (NASDAQ: AAPL) has been an outlier in the tech trade. Quirke covered why the company has steered clear of the tech wreck, but also why its current valuation will face a tough test when it reports earnings on July 30.

Netflix Inc. (NASDAQ: NFLX) delivered an earnings report that confirmed investors' worst suspicions. Engagement is lagging; content creation is a necessary, but significant, expense. More importantly, the streaming giant is competing in a crowded field. Nevertheless, Chris Markoch explained why, as a trade, NFLX may be so bad it's good.

Microsoft Corp. (NASDAQ: MSFT) reports Q4 2026 earnings on July 29. That's when Microsoft will deliver CapEx guidance for its 2027 fiscal year. That's the number to watch—even more than the growth of Azure.

Small-cap stocks, as measured by the Russell 2000, outperformed the S&P 500 significantly in the first half of 2026. But not every small-cap stock deserves a place in your portfolio. Markoch pointed out three small-cap stocks with company-specific catalysts worth watching heading into the back half of 2026.

U.S. stocks have performed better than expected in the first half of 2026. But Leo Miller reminded growth-oriented investors why it's important to look outside the United States. Miller analyzed two Asian-based exchange-traded funds (ETFs) that have delivered gains of over 50% year to date.

Alphabet Inc. (NASDAQ: GOOGL) reported earnings this week, and investors sold the stock on concerns over what CapEx spending was doing to its free cash flow. It's a multi-year story that's still in its early stages, but it could set the short-term tone for the technology trade.

Hasson also analyzed the question that Rocket Lab (NASDAQ: RKLB) shareholders have to wrestle with. That is, even with the stock down 50% from its 52-week high, is it still too expensive?