Last week, several of the Magnificent Seven firms posted quarterly results. Which ones are the companies to consider buying?
Apple (AAPL), which did not follow its peers in spending heavily in artificial intelligence, reported strong iPhone sales. It earned $2.84 a share, after revenue of $143.76 billion, which is up by 15.7% Y/Y. The milestone of 2.5 billion active devices is impressive. Customer response to the latest iPhone will more than offset the higher prices due to rising memory chip costs.
AAPL stock is attractive.
Tesla (TSLA) said it would wind down Model S/X production. Despite sales continuing to fall, the firm reasoned that the production end is a conversion. It is targeting to produce a million Optimus robots annually. Morgan Stanley was not impressed with the $20 billion in capital expenditures in 2026. It also viewed the 3.1% Y/Y revenue decline, to $24.9 billion, as negative.
TSLA stock is a good momentum trade.
Microsoft (MSFT) spooked investors after reporting Azure revenue growth slowing by 100 bps. Even more troubling are bookings: OpenAI accounts for around 45% of RPOs. Still, to lower risks, Microsoft is investing in Anthropic and Claude 4.5.
As risks mount, consider reducing the MSFT stock position.
Lastly, Meta Platforms (META) increased its revenue by 23.8% Y/Y to $59.89 billion. Expenses for 2026 will be in the range of $162 - $169 billion.
Readers should consider starting a position or adding to META stock.
