Newsletter
It was a mixed bag for big tech companies this week with Alphabet soaring, Microsoft steadying, and Meta stumbling.
Results summary: Alphabet stole the show, with shares jumping 6.2% after quarterly revenue crossed the $100 billion mark for the first time ever, hitting $102.35 billion against expectations of $99.89 billion.
The credit goes to steady ad growth and a booming cloud business, while earnings per share of $3.10 easily beat estimates.
Microsoft’s story was a bit more muted. Despite a 22% profit jump to $30.8 billion and stronger-than-expected cloud revenue, its stock slipped 3.4% in after-hours trading. Investors were hoping for even bigger fireworks from its AI push but the company’s solid performance proves that AI is now more business than buzz.
Meta, on the other hand, had a rough quarter. Its stock tumbled 8% after a massive $16 billion one-time charge linked to Trump’s so-called “Big Beautiful Bill.” Revenue still grew 26% year-on-year, the fastest in over a year, but CEO Mark Zuckerberg’s AI obsession and warning of much higher spending next year spooked investors.
Simply put, Google cashed in, Microsoft cruised, and Meta crashed. The AI race is still on, but the winners are now defined by execution, not excitement.
