Stock Market Today: Meta's value wilts, while Microsoft rakes in the profits in the stock market arena
Tech Giants Report Q2 Earnings: Apple, Amazon, Meta, and Microsoft
The tech sector has been abuzz this week with major companies reporting their second-quarter earnings. Among them are Meta Platforms (META), Apple, Amazon.com, and Microsoft.
Meta Platforms (META) reported earnings of $7.14 per share for the second quarter, marking a 38% year-over-year increase. CFRA Research analyst Angelo Zino praised Meta, stating that the company is "firing on all cylinders" and is confident in META's AI-driven growth opportunities.
Apple is expected to report strong revenue near $89 billion and solid EPS around $1.43–$1.57 in their upcoming Q3 2025 report, scheduled for July 31, 2025. This forecast suggests that the consensus estimates might be conservative due to strong iPhone sales and AI-related growth, despite tariff-related cost pressures. Apple's CEO Tim Cook has noted both AI advances and tariff pressures influencing the quarter.
For Amazon, the next quarterly earnings report is expected on August 7, 2025, anticipating earnings per share around $1.32. Despite Amazon’s last reported EPS of $1.59, which beat estimates, the current consensus outlook slightly expects a miss by 1.43% relative to prior estimates.
Microsoft's total revenue for its Intelligence Cloud segment increased by 26% in the latest quarter. Microsoft forecast higher-than-expected capital expenditures of more than $30 billion for its fiscal first quarter. Microsoft's fiscal fourth-quarter revenue grew 18% year over year, while earnings per share grew 24%. The company's Azure AI cloud-computing platform revenue increased by 34% in the latest quarter.
The Dow Jones Industrial Average closed down 0.7% at 44,130, while the Nasdaq Composite only lost 0.03% to 21,122. Meta Platforms' share price surged 11.3% on Thursday, reaching $773. Wedbush analyst Dan Ives raised his price target for MSFT stock to $625, representing an implied upside of more than 17% to today's close.
Arm Holdings, a key player in the semiconductor industry, reported a revenue miss in its second quarter. Arm Holdings expects second-quarter earnings of 33 cents per share at the midpoint, lower than analysts' expectations. The company's stock plunged 13.4% after its second-quarter results, making it the bottom of the S&P 500.
Meta Platforms' revenue for the second quarter was $47.5 billion, an increase of 22% year over year. Meta Platforms lifted the low end of its full-year capital expenditures forecast, now expecting spending in the range of $66 billion to $72 billion.
In conclusion, the tech sector has seen a busy week with major companies reporting their earnings. Apple, Amazon, Meta, and Microsoft have all released their second-quarter results, with Apple and Meta showing strong growth, and Microsoft anticipating high capital expenditures. The week is not over yet, with results from Apple and Amazon still to come, as well as the July jobs report, and tariff news.
Financial analytics suggest that the market capitalization of Meta Platforms (META) could surge due to its strong second-quarter performance and promising AI-driven growth opportunities. Investors are keenly watching trading activities in the technology sector, with Apple, Microsoft, and Amazon's Q2 earnings reports indicating positive growth. This growth is attributable to factors such as increased revenue, capital expenditures, and AI-related advancements. However, concerns about tariff-related cost pressures and potential misses in earnings projections, as seen in the case of Arm Holdings, could influence the market's direction. Despite this, the technology industry's consensus remains optimistic, with many analysts expressing confidence in the sector's growth potential.
