The trading activity in the Magnificent 7 members did not disappoint markets. Last night, Meta Platforms (META) lost around 9% after incurring a massive tax bill and forecasting higher capital expenses next.
Meta reported a Q3 GAAP EPS of $1.05. Revenue jumped by 26.2% Y/Y to $51.24 billion. Ad impressions grew by 14% while the average cost per ad rose by 10%. Meta expects its capital expenditures for 2025 to be in the range of $70 billion to $72 billion. This is above the prior outlook of $66 billion to $72 billion.
Alphabet (GOOG) will open up by around 7%. The search engine giant reported a 16% Y/Y increase in revenue, to $102.35 billion. This is the first quarter that the firm exceeded $100B in revenue. Its cloud revenues grew by 34%, while Google Services revenue increased by 14%.
Microsoft (MSFT) suffered a massive Azure outage on Wednesday. After the bell, it warned that it would increase its capex forecast for 2026. In Q1, it earned $4.13 a share (adjusted), thanks to revenue rising 18% Y/Y to $77.67 billion. Still, OpenAI hurt net income by $3.1 billion and $0.41 in EPS.
In precious metal markets, watch out for gold. Spot gold fell nearly 1% after the Federal Reserve did not guarantee a rate cut. That increases the attractiveness of the US dollar, which competes with gold.
