From Nasdaq: 2025-04-28 09:30:00

The “Magnificent 7” companies, including Apple, Microsoft, and Amazon, are in the spotlight for the first-quarter earnings season. Expectations are for a 19.6% increase in earnings and a 10.9% rise in revenues compared to the same period last year. Microsoft and Meta performed better this year, while Amazon and Apple saw declines.

Microsoft reported no earnings estimate revisions for the third quarter of fiscal 2025, with expected earnings and revenue growth of 8.8% and 10.5%, respectively. The company is investing in AI technology and has minimal risk exposure in certain sectors. Microsoft anticipates revenues of $67.7-$68.7 billion for the third quarter.

Meta Platforms has seen a negative earnings estimate revision for the first quarter, but strong year-over-year growth is expected in both earnings and revenue. The company faces tariff concerns but continues to invest in AI and digital advertising. Revenue growth is projected to slow to $39.5-$41.8 billion in the first quarter.

Apple has a negative earnings estimate revision for the fiscal second quarter of 2025, with modest year-over-year increases expected in both earnings and revenues. The company is vulnerable to tariffs due to its reliance on Chinese production. However, strong service revenues may offset challenges.

Amazon expects substantial earnings and revenue growth for the first quarter, with revenues projected in the range of $151-155 billion. The company is expanding in e-commerce, cloud computing, and advertising. However, tariff risks remain due to its reliance on Chinese manufacturing and consumer markets.

Investors looking to tap into the performance of the “Magnificent 7” companies can consider ETFs like Roundhill Magnificent Seven ETF (MAGS), MicroSectors FANG+ ETN (FNGS), Vanguard Mega Cap Growth ETF (MGK), Principal Focused Blue Chip ETF (BCHP), and Invesco S&P 500 Top 50 ETF (XLG). These ETFs offer exposure to the key companies in various ways.



Read more at Nasdaq: Can Q1 Earnings Inject Fresh Life Into Magnificent 7 ETFs?