Meta and Microsoft smashed the EPS and revenue projections and their stocks are rewarding investors.
Starting with Meta, they reported a huge quarter, with revenue coming in at $47.52 billion — that’s a 22% jump year-over-year and well ahead of the $44.8 billion expected. EPS wasn’t just a beat — it was a smash: $7.14 per share, up 38%, versus estimates in the $5.90–$6.00 range.
Other details showed:
- Ad revenue was the key driver, up over 21%,
- User growth held strong at 3.48 billion daily actives.
On top of that, Meta raised its Q3 revenue guidance to as high as $50.5 billion, and even lifted its full-year CapEx to a staggering $72 billion.
Bottom line? This was an aggressive, confident print. The stock is currently up 11.62% at $775.88.
Microsoft also reported with an equally dominant quarter. Revenue hit $76.44 billion — up 18% from a year ago and well above the $73.9 billion consensus. EPS came in at $3.65, a solid beat over the $3.35 estimate and up 24% year-over-year.
Looking at the details:
- The Azure business continues to crush it, with cloud and AI infrastructure demand driving a 30%+ surge.
But what has market excited is that Microsoft is going full throttle on AI. They’re projecting $30 billion in CapEx just for Q1, and a massive $120 billion for the full fiscal year — that’s up from $88 billion last year. This isn’t cautious investment; this is domination mode. The markets are not scared. They are more focused on who’s going to win and Microsoft is making the play.
Technically, Meta shares are on a tear. The price surged through a key supply zone between $736 and $748, breaking cleanly into new high ground. So far today, it has reached a high of $784.75. That former resistance zone now flips to nearby support, and as long as the price holds above it, the bullish breakout remains intact.
A sustained move above that swing area is the ideal scenario for buyers. On the flip side, a drop back below could undermine breakout confidence and trigger some profit-taking or liquidation. That said, Meta is still trading well above both its 100-day and 200-day moving averages, reinforcing the view that buyers remain firmly in control for now.
Of note is that although the price is up over level, the biggest day for the year was back on April 9 when the price surged by 14.76%.
Technically, Microsoft shares surged to a new record today (see chart above), breaking above the previous all-time high of $518.29 ahead of earnings and climbing to an intraday peak of $555.45. While the price has since pulled back from the highs, it’s still holding strong — up around $24, or 4.6%, at $536. As long as the price remains above the old high, the bullish breakout narrative stays intact. A move back below that prior high, however, could dampen momentum and disappoint short-term buyers.
One milestone worth noting: Microsoft’s market capitalization briefly topped $4 trillion today, trailing only Nvidia’s ~$4.4 trillion. On the post-peak dip, the valuation has slipped just below that threshold, currently sitting near $3.98 trillion. Even so, the company’s performance keeps it firmly in the upper echelon of tech market leadership
For Mark Zuckerberg and Satya Nadela it was smashing days for them and their companies. The AI revolution is off and running and those two companies have the money and are willing to spend it to lead the charge for domination in their respective businesses.
The other dynamic is that although they are competitors in AI, collaboration, and enterprise tools, they have different core strengths:
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Meta is a social and advertising giant with growing AI infrastructure ambitions.
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Microsoft is an enterprise software and cloud titan with deep AI integration.
They’re increasingly on a collision course in AI and compute, but they’re not total rivals like Meta vs. Google or Microsoft vs. Amazon Web Services. I think that is good for each. They are titans. They are the gold standards.
This article was written by Greg Michalowski at investinglive.com.