Meta and Microsoft Report Strong Earnings, Boosting Stock Prices
Stocks rose following positive Q1 earnings reports from Meta and Microsoft.
- Microsoft shares increased by up to 9%, Meta's stock surged over 5% in after-hours trading.
- Meta reported earnings per share (EPS) of $6.43 on revenue of $42.3 billion, exceeding forecasts of $5.25 EPS and $36.4 billion in revenue.
- Meta plans to increase capital spending, primarily for AI investments, reassuring investors about economic impacts.
- Microsoft posted an EPS of $3.46 with revenue of $70 billion, surpassing expectations of $3.22 EPS and $68.4 billion in revenue.
- Both companies will continue significant investments in AI; Microsoft’s capital expenditures reached $16.7 billion.
- Upcoming earnings reports from Amazon and Apple are expected soon, with Nvidia set to report on May 28.