Technology giants such as Tesla, Microsoft, and Meta are set to report strong fourth-quarter earnings

From Nasdaq: 2025-01-29 10:16:00

The “Magnificent 7” companies, including Apple, Microsoft, and Tesla, are set to report fourth-quarter earnings. Earnings are expected to be up 20.9% from last year, with Tesla seeing a positive earnings estimate revision. Microsoft is investing $80 billion in AI-focused data centers. Meta Platforms is expected to post strong revenue growth. Amazon is predicted to see a 52.5% increase in earnings. Alphabet is facing challenges in the AI space.

The Mag 7 companies are gearing up to report fourth-quarter earnings, with Tesla, Microsoft, and Meta Platforms leading the way. Tesla has an Earnings ESP of +1.68% and a Zacks Rank #3, while Microsoft’s ESP is -2.13%. Meta Platforms anticipates significant year-over-year earnings growth of 29.5%. Amazon shows an ESP of +8.62% and a Zacks Rank #2.

Microsoft plans to spend $80 billion on AI-focused data centers in fiscal 2025, with significant investments in the US. The company expects its AI business to generate over $10 billion in sales in the coming quarters. Meta Platforms is forecasted to see substantial earnings and revenue growth. Amazon’s AI business is growing rapidly, with revenues expected to be between $181.5-$188.5 billion in Q4 2024.

Apple, with an Earnings ESP of -1.51% and a Zacks Rank #4, is preparing to report first-quarter earnings. The company has a track record of positive earnings surprises but is facing challenges in boosting sales with new AI applications. Alphabet, with an ESP of +5.96%, is expected to see earnings and revenue growth in the fourth quarter. Apple and Alphabet have gained 4% and 12%, respectively, over the past three months.



Read more at Nasdaq: Mag 7 Earnings: Tesla, Microsoft & Meta in Focus