Meta, MSFT, AMZN Earnings Improve Stock Market Mood, AAPL Disappoints
This week saw a flurry of earnings reports from big names such as Amazon, Apple, Meta etc, displaying mostly positive performance.
Quick overview
- This week featured earnings reports from major tech companies, with Meta and Microsoft delivering impressive results and positive guidance.
- Meta reported a 16% year-over-year revenue increase to $42.31 billion, while Microsoft achieved a 13% growth in revenue to $70.1 billion.
- Amazon's Q1 earnings were solid but its stock performance was muted due to cautious forward guidance, despite strong AWS growth.
- Overall, the MAG 7 tech stocks showed mixed performance, with Meta and Microsoft leading, while Apple faced challenges related to iPhone sales.
Live AMZN Chart
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This week saw a flurry of earnings reports from big names such as Amazon, Apple, Meta etc, displaying mostly positive performance and investor reactions.
Meta and Microsoft Impress with Strong Guidance and Growth
Among the tech giants, Meta Platforms and Microsoft stood out with earnings results that not only beat expectations but also offered encouraging guidance. Meta reported a stellar first quarter with $42.31 billion in revenue, a 16% year-over-year increase, beating analyst estimates. Net income surged 35% to $16.64 billion, marking the company’s second-highest quarterly profit ever, just behind Q4 2024. Meta’s core advertising business continued to thrive, accounting for 98% of its revenue, with average ad prices rising 10% over the year.
Microsoft also exceeded forecasts with a fiscal Q3 revenue of $70.1 billion, growing 13% year-over-year. Net income jumped 18% to $25.8 billion, thanks to strong operational efficiencies. Notably, its cloud business remained the primary driver, with Microsoft Cloud revenue up 20% year-over-year to $42.4 billion — reaffirming the company’s leadership in enterprise services, led by Azure and Office 365.
Amazon Delivers Solid Q1 but Falls Short on Momentum
Amazon’s Q1 2025 earnings were largely positive, though less explosive compared to Meta and Microsoft. Revenue reached $155.7 billion, slightly ahead of the $154.89 billion estimate. EPS came in at $1.59, well above the $1.36 forecast, indicating stronger profitability. Amazon Web Services (AWS) continued to shine, delivering 17% year-over-year growth to hit $29.3 billion in revenue. Its operating income from AWS also rose significantly to $11.5 billion, reflecting healthy margin expansion.
However, Amazon’s stock performance was more subdued this week, as the market showed a more cautious reaction to its forward guidance and retail segment trends.
MAG 7 Weekly Tech Stock Performance Breakdown
- Meta Platforms posted a strong weekly gain of 9.09%, finishing at $597.02, as sentiment rebounded following positive signals on ad spending and AI monetization strategies.
- Microsoft was the top performer among the group, surging 11.08% to close at $435.28, thanks to robust cloud growth and upbeat Q1 earnings that exceeded market expectations.
- Amazon edged up 0.52%, ending the week at $189.98. While Q1 earnings were solid, the stock faced headwinds from a slightly cautious Q2 outlook.
- Apple was the laggard this week, sliding 1.88% to settle at $205.35, as concerns about iPhone sales and Chinese market exposure continued to weigh on sentiment.
The other 3 of the MAG 7:
- Alphabet (Google) gained 1.28%, with Class A shares ending at $164.03, supported by stable ad revenue growth and expanding AI product launches.
- Nvidia advanced 3.07%, closing at $114.50 after continued AI momentum and investor confidence in its dominant position in GPU markets.
- Tesla posted a 0.79% increase, finishing at $287.21, with modest gains amid ongoing debate over margins and delivery outlook.
The MAG 7 showed a mixed but mostly positive performance this week, with cloud and big names like Microsoft and Meta leading the charge. Apple’s weakness highlights sector-specific risks, while broader sentiment remains bullish heading into more key earnings and macro updates.
Conclusion:
Earnings season brought clarity to the current positioning of big tech. Meta and Microsoft demonstrated leadership with robust results and confident outlooks, while Amazon showed underlying strength but not enough to shift market sentiment meaningfully. As Q2 unfolds, momentum will likely hinge on continued growth in high-margin segments like cloud and AI, as well as broader macroeconomic cues.
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