Meta and Microsoft Shine as Earnings Season Gets Underway
Earnings season got underway this week, and the early results from the tech sector have been impressive. Meta (META) and Microsoft (MSFT) both reported blowout quarters, sending their stocks soaring and lifting the broader market.
| Metric | Value | Weekly Change |
|---|---|---|
| NASDAQ Composite | 16,820.10 | +1.7% |
| QQQ (NASDAQ-100 ETF) | 460.50 | +1.8% |
| Meta (META) | 450.20 | +15.2% |
| Microsoft (MSFT) | 480.60 | +12.1% |
Meta’s AI Investments Pay Off
Meta (META) reported a stunning quarter, with revenue jumping +35% to $51.2 billion. The company’s investments in artificial intelligence are clearly paying off, with AI-powered features driving a surge in user engagement and ad revenue. The company’s Family of Apps daily active people (DAP) reached 3.54 billion in September 2025, an increase of 8% year-over-year. The stock soared +15.2% on the news.
Microsoft’s Cloud Growth Continues
Microsoft (MSFT) also reported a strong quarter, with revenue up +22% to $68.5 billion. The company’s Azure cloud computing platform was the star of the show, with revenue growth of +35%. Microsoft is also seeing strong demand for its AI-powered products, and the company raised its guidance for the full year. The stock jumped +12.1% on the news.
A Strong Start to Earnings Season
The strong results from Meta and Microsoft are a positive sign for the tech sector and the broader market. They suggest that the AI boom is real and that it is having a major impact on the top and bottom lines of many tech companies. The upcoming reports from other tech giants like Apple (AAPL), Amazon (AMZN), and Alphabet (GOOGL) will be closely watched.
Looking Ahead
Earnings season is off to a strong start, and the early results from the tech sector are very encouraging. The AI boom is a major tailwind for the industry, and it is likely to continue to drive growth for years to come. Investors should look for opportunities to add to their positions in high-quality tech stocks.
