What To Watch For When Apple, Amazon Report Earnings After The Bell

Apple Inc AAPL and Amazon.com Inc AMZN are set to report earnings after the bell, and one investor is holding both names into the print. 

What To Know: Douglas C. Lane & Associates' Sarat Sethi highlighted what investors should be watching for when the pair of mega caps report Thursday on CNBC's "Fast Money Halftime Report."

"Let me start with Amazon," Sethi said. "I think the key is going to be: what levers are they going to pull?"

Amazon previously indicated that it planned to cut back on capital expenditures on the retail side of the business during the quarter, Sethi said.

The real key to the report is strong margins from Amazon Web Services, he said.

"If they can get expanding margins there, that's going to be the catalyst for the stock," Sethi said.

For Apple, it comes down to supply and demand, he said.

"If it's a demand destruction issue, I think the stock's in trouble. If it's a supply issue, I think they'll get a pass," Sethi said.

See Also: Apple Q3 Earnings Imminent: Why Investors Are Watching Supply Chain, Chip Shortage Impact And More

Apple is expected to earn $1.16 per share on quarterly revenue of $82.6 billion, according to data from Benzinga Pro. Analysts expect Amazon to report quarterly earnings of 14 cents per share on revenue of $119.12 billion.

AAPL, AMZN Price Action: Apple was up 0.33% Thursday afternoon at $157.31 and Amazon was trading 0.79% higher at $121.92. 

Photos: courtesy of Amazon and Apple.