Microsoft and Meta Platforms beat earnings expectations, driven by growth in revenue, positively impacting stocks.

From Zacks Investment Research: 2025-01-31 05:52:16

Microsoft and Meta Platforms recently reported their earnings, overshadowed by the news of Chinese AI startup DeepSeek’s new model. Microsoft exceeded expectations with adjusted EPS of $3.23 and sales of $69.6 billion, driven by growth in Intelligent Cloud revenue. Meta Platforms also beat expectations with adjusted EPS of $8.02 and sales of $48.4 billion, particularly strong in its ad business. Both companies maintained their CapEx outlooks and acknowledged the innovations by DeepSeek. Investors should wait for official statements before reacting to headlines. Microsoft’s forward PE ratio is 31.7X, while Meta Platforms’ is 25.9X.



Read more at Zacks Investment Research: Zacks Investment Ideas feature highlights: Microsoft and Meta Platforms – January 31, 2025