Three of the Magnificent Seven members are set for big moves today, after posting quarterly results.
Meta Platforms (META) traded up by around 9.9% but pulled back in after-hours trade. It posted a 23.8% Y/Y increase in revenue. Q4 GAAP EPS of $8.88 beat expectations. Ad impressions flourished, rising by 18% Y/Y. Average ad prices rose by 6% in the quarter.
Meta plans to spend between $162 - $169 billion in 2026.
Microsoft (MSFT) fell by over 6% following its earnings report. Although revenue grew by 16.8% Y/Y to $81.3 billion, Azure (the cloud division) growth pulled back from 40% to 39%. Personal computing, however, lagged expectations. The unit includes Xbox, Activision, Windows, and Microsoft Surface. Weak PC sales, hurt by rising RAM (memory) prices, will drag the unit.
Tesla (TSLA) posted troubling electric vehicle sales results. Revenue fell by 3.1% Y/Y to $24.9 billion. To-date, CEO Elon Musk earned more in compensation than Tesla made in total profit since going public. Oddly, TSLA stock initially rallied by around 3% last night. The algorithmic trading likely priced in the company’s upbeat outlook on Cybercab and robotaxi.
Tesla does not yet have either of the promised products on the market. Still, markets are willing to trade on the stock’s momentum.
