From Nasdaq: 2025-05-05 14:00:00

The Magnificent 7, including Amazon, Apple, Meta Platforms, Microsoft, Alphabet, and Tesla, reported positive earnings over the past two weeks. Microsoft emerged as the top performer with the highest Zacks Rank and strong stock performance.

Microsoft’s cloud business, Azure, showed impressive growth with a 33% increase in revenue year-over-year. In comparison, Amazon Web Services grew by 17% and Google Cloud by 28%, highlighting Microsoft’s leadership in enterprise cloud and AI infrastructure.

Microsoft has lower tariff risks compared to Apple, Meta Platforms, and Amazon due to its diversified revenue streams and limited exposure to China. Its business model focusing on software, cloud services, and enterprise solutions makes it less vulnerable to trade tensions.

Valuations for the Magnificent 7 stocks appear fair, with Microsoft trading above its peers but in line with historical averages. Most of the group is trading below their five-year averages, offering attractive opportunities for investors seeking growth and value.

Investors are encouraged to consider buying shares in Microsoft due to its strong cloud growth, earnings momentum, and low exposure to macro risks. Microsoft’s premium valuation is justified by its leadership in AI and enterprise business, making it a compelling long-term investment choice.



Read more at Nasdaq: The Standout Magnificent 7 Stock: Microsoft’s Quiet Dominance