Last week, several of the Magnificent Seven firms posted quarterly earnings. Meta Platforms (META) and Microsoft (MSFT) fell afterward, while the others rallied.
Meta lost 13.5% last week, closing at $648.35 and down over $100/share. The firm said on Oct. 31 that it would raise debt worth up to $30 billion. It needs the funds to cover soaring AI expansion-related costs. Meta also posted a $16 billion one-time income tax charge, blaming it on the ‘One big, beautiful bill.’
Investors need to exercise caution with META stock. The firm is leveraging its balance sheet, investing in the metaverse, AI, and supercomputing technology. This might not convert to higher advertising revenue.
Microsoft (MSFT) lost 2.23% last week to close at $517.81. In Q1, earned $4.13 a share on revenue of $77.67 billion (+18% Y/Y). In Q2, it expects revenue of up to $80.6 billion. Azure will grow by 37%.
Alphabet (GOOG) (GOOGL) set record highs in its share price after reporting that Gemini, its AI app, now has over 650 million monthly active users. Queries increased by 300% Q/Q.
The firm will scale its own TPUs and Nvidia’s (NVDA) GPUs in its data centers. The company will increase capital expenditures as technical infrastructure investment demands rise.
Amazon (AMZN) reported a profit of $1.95 a share, up by 16% Y/Y. AWS net sales grew by 20% Y/Y, while total sales of 13% growth ($180.2 billion). Sales exceeded estimates by $3 billion.
