From Nasdaq: 2025-04-26 11:03:00

• Microsoft and Meta Platforms have seen a decline in stock prices in 2025, with drops of 13% and 14.5% respectively. Despite this, both companies are set to report earnings on April 30, leading to discussions on whether they are good investment opportunities given the market turbulence.
• Potential road bumps for Microsoft and Meta include new tariff policies affecting technology businesses. Both companies are heavily investing in AI infrastructure, which could lead to higher costs due to tariffs, impacting profitability and sales growth.
• To mitigate shrinking profits, Microsoft and Meta may need to scale back AI capital expenditure plans, but this could affect their growth narratives. Despite short-term challenges, Microsoft’s forward P/E ratio is slightly below its three-year average, making it a potential buy for investors.
• Meta’s growth prospects seem less impacted by tariffs compared to its peers, with a focus on monetizing its platforms like Facebook and Instagram. The company’s metaverse ambitions and advertising revenue sources could provide opportunities for growth in the future.
• Investors looking to buy the dip in tech stocks like Microsoft and Meta should consider the long-term prospects. While tariff policies may cause uncertainty in the market, both companies are trading at reasonable valuations, making them potential investments for the future.

Read more at Nasdaq: 2 Magnificent Artificial Intelligence (AI) Stocks to Consider Buying Before April 30