Hard times come for the “7 magnificent”: only Microsoft registered an increase of only 0.93%
Of the “7 magnificent” – Apple, Amazon, Microsoft, Tesla, Google, Meta and Nvidia – from the beginning of the year, only Microsoft has a positive performance of shares, of +0.93%, the highest decrease being registered by Tesla (-31%).
The actions of the main technology companies have dropped dramatically from the beginning of the year
Major decreases in the price of shares from the beginning of the year also recorded Apple and Nvidia, both with almost -16%, Alphabet (Google) and Amazon, with approximately -15%. Meta approaches the positive area, with -2.27%, shows Etoro Bogdan Maioreanu analyst. All the actions of the companies in the group of the “7 magnificent” are among those preferred by Romanian individual investors on the trading and investment platform, Nvidia being the most held action, followed by Tesla, Apple on 4th place, Microsoft on 5, Amazon on 7, Alphabet on 8 and Meta on the 10th place at the end of the year 1.
It was a busy week for four companies in the group of “7 magnificent” – American technological giants, who published their financial reports for the first quarter of the year: Meta, Microsoft, Amazon and Apple. Although they all reported income increases, only in one of them, Microsoft, the results have managed to push the performance of the action in the positive territory from the beginning of the year. Before publishing these results, investors had question marks on the request for AI, but also on the impact of customs tariffs.
Microsoft quickly dispelled these concerns, registering a massive 35% increase in Azure cloud sales, far beyond the expectations of 30% analysts, and demonstrating how well it monetizes artificial intelligence. Total revenues increased by 13%, up to $ 70.1 billion, while the adjusted profit was $ 3.46 per action. Capital expenses in the first quarter of 2025 increased to $ 21.4 billion, less than in the previous quarter – the first quarterly decrease in two years – but the capital expenditures set out for the whole year remain unchanged. It is important to note that Microsoft is expecting a slight increase in operational margins from year to year, despite massive expenses, which strengthens the thesis that Microsoft is a money making machine.
Meta found, however, that the Metro is expensive
Meta Platforms, Facebook, WhatsApp and Instagram owner also reported solid results for the first quarter of 2025, with 16% increasing income compared to the same period last year, up to $ 42.3 billion, exceeding 4% analyst expectations. The net profit increased by 35%, to $ 16.6 billion ($ 6.43 per action), driven by solid advertising revenues of $ 41.4 billion, from his application family segment. Meta, however, discovered that the metal is expensive, the division reporting an operational loss of $ 4.2 billion. However, the company has increased its forecasts for capital expenditures for 2025 to $ 64-72 billion (from $ 60-65 billion) to accelerate AI infrastructure, including state-of-the-art databases and hardware. CEO Mark Zuckerberg has stressed the progress made by Meta AI, which is now approaching 1 billion monthly users. The Meta estimated revenues for the second quarter of $ 42.5-45.5 billion, but analysts expressed concern about the impact of customs tariffs between the US and China on advertising expenses, especially from Chinese electronic commercial companies, such as TEMU.
Amazon also reported solid results, with 9% net sales compared to the previous year, up to $ 155.7 billion, and a net profit that skipped $ 17.1 billion. His revenues from the Amazon Web Services Cloud services increased by 17%, to $ 29.3 billion (almost equaling in the consensus of $ 29.4 billion), while advertising revenues increased by 19%, to $ 13.92 billion. However, the shares decreased by almost 4% after the market closes, investors reacting to the prudent forecasts for the second quarter, which did not meet Wall Street estimates, which has aroused concerns about profitability in the context of the new fares imposed by the Chinese products. In fact, Amazon mentioned that his estimates are the subject of a “substantial uncertainty”.
Apple shares also decreased by more than 2% after the market closes, despite the financial results over expectations for the second quarter of 2025, with increasing revenues by 5.1%, up to $ 95.36 billion, and a profit per share of $ 1.65. The iPhone sales exceeded expectations, reaching $ 46.84 billion, while service revenues ($ 26.65 billion) missed the estimates. China sales fell to $ 16 billion, 2.3% less than estimates, against competition from Huawei, Xiaomi and Oppo, while the Chinese government has banned the use of foreign technology in certain jobs. Investors remain cautious due to risks related to the US tariffs on China. Apple is expecting an increase in costs by $ 900 million due to customs tariffs over the present period, if they remain unchanged, the company said. The revenues will increase by a percentage between 1% and 5% in this quarter. The analysts estimated an average increase of 5%.
