The market reacted positively to Meta Platforms’ quarterly results, but Microsoft and Tesla disappointed with their December-quarter numbers. Microsoft saw +28.1% earnings growth on +16.7% revenue gains, but Azure’s +38% growth fell short. Meta’s Q4 growth numbers showed +9.3% earnings and +23.8% revenue growth, with improved AI utilization in advertising.

Both Meta and Microsoft cited capacity constraints affecting their operations, leading to increased capex budgets. Amazon and Alphabet are set to report earnings soon, with expected growth for Amazon at +5.7% earnings and +12.7% revenues, and Alphabet at +17.5% earnings and +16% revenues. The Mag 7 group is on track for strong earnings growth in Q4, with varying contributions from different members like Tesla and Nvidia.

Q4 earnings season has shown growth in total earnings and revenues, with 77.8% beating EPS estimates and 64.7% beating revenue estimates. Over 450 companies are set to report results this week, including Amazon, Alphabet, Disney, and more. The overall earnings picture remains strong, with double-digit growth expected in 2025 and 2026.

Analysts have raised estimates for various sectors like Tech and Basic Materials, while some sectors like Energy and Medical have seen estimate decreases. Despite some downward pressure on current period estimates, overall earnings growth outlook remains positive. The market anticipates double-digit earnings growth in 2025 and 2026, with continuing positive trends in sector estimates.

Read more at Nasdaq: How Are Mag 7 Earnings Shaping Up?