Leading tech companies exceed Wall Street’s predictions, providing investors with relief amidst turbulence in the US stock market.
Microsoft and Meta, both tech giants, have delivered stronger-than-expected results in the first quarter of the year, offering a respite to investors who have endured months of market volatility caused by President Donald Trump’s trade policies.
Meta, the parent company of Facebook and Instagram, reported a net quarter profit of $16.64 billion, or $6.43 per share for the January–March period, representing a 35% increase year-on-year.
The company’s revenue increased by 16% to $42.31 billion, surpassing Wall Street’s estimates of approximately $41.4 billion.
Microsoft also announced a net quarter profit of $25.8 billion, or $3.46 per share, marking an 18% increase year-on-year.
The company’s revenue amounted to $70.1 billion, a 13% increase compared to the previous year and above expectations of analysts.
Both companies have credited artificial intelligence (AI) as a significant growth driver, alleviating investor concerns about a potential slowdown in demand for the emerging technology.
Meta has integrated AI tools into its advertising business, its primary source of revenue, while Microsoft has experienced strong growth in its cloud computing business.
Google’s parent company, Alphabet, which has also made substantial investments in AI, reported higher-than-expected quarterly revenue of $90.23 billion last week.
The results provide a boost to the US tech sector, whose share prices have faced fluctuations since President Trump took office on January 20.
The market value of the top seven US tech companies – including Microsoft, Meta, Nvidia, Amazon, Tesla, Apple, and Alphabet – dropped by 24%, or $4.2 trillion, in the first 100 days after Trump’s inauguration.
Trump’s tariffs, including a 145% duty on China, have disrupted businesses and unsettled investors, who await anxiously for his next moves following his announcement of a 90-day pause on so-called “reciprocal” duties targeting most countries.
The US economy contracted by 0.3% in the first quarter of 2025, according to the US Department of Commerce, heightening concerns that the US may head into a recession this year.
During an earnings call with investors, CEO Mark Zuckerberg stated that Meta is “well-positioned to navigate the macroeconomic uncertainty” of recent months.
The company also launched a standalone AI app this week, MetaAI, and plans to allocate between $64 billion and $72 billion for capital expenditure in 2025 to complete the construction of data centers.
Meta, the parent company of Facebook and Instagram, reported a net quarter profit of $16.64 billion, or $6.43 per share for the January–March period, representing a 35% increase year-on-year.
The company’s revenue increased by 16% to $42.31 billion, surpassing Wall Street’s estimates of approximately $41.4 billion.
Microsoft also announced a net quarter profit of $25.8 billion, or $3.46 per share, marking an 18% increase year-on-year.
The company’s revenue amounted to $70.1 billion, a 13% increase compared to the previous year and above expectations of analysts.
Both companies have credited artificial intelligence (AI) as a significant growth driver, alleviating investor concerns about a potential slowdown in demand for the emerging technology.
Meta has integrated AI tools into its advertising business, its primary source of revenue, while Microsoft has experienced strong growth in its cloud computing business.
Google’s parent company, Alphabet, which has also made substantial investments in AI, reported higher-than-expected quarterly revenue of $90.23 billion last week.
The results provide a boost to the US tech sector, whose share prices have faced fluctuations since President Trump took office on January 20.
The market value of the top seven US tech companies – including Microsoft, Meta, Nvidia, Amazon, Tesla, Apple, and Alphabet – dropped by 24%, or $4.2 trillion, in the first 100 days after Trump’s inauguration.
Trump’s tariffs, including a 145% duty on China, have disrupted businesses and unsettled investors, who await anxiously for his next moves following his announcement of a 90-day pause on so-called “reciprocal” duties targeting most countries.
The US economy contracted by 0.3% in the first quarter of 2025, according to the US Department of Commerce, heightening concerns that the US may head into a recession this year.
During an earnings call with investors, CEO Mark Zuckerberg stated that Meta is “well-positioned to navigate the macroeconomic uncertainty” of recent months.
The company also launched a standalone AI app this week, MetaAI, and plans to allocate between $64 billion and $72 billion for capital expenditure in 2025 to complete the construction of data centers.
