Big Tech Earnings Live: Meta and Tesla Shares Surge on Strong Results; Microsoft Drops as Cloud Revenue Growth Slows

Backlog Concentration, Cloud Growth Weigh on Microsoft

Jefferies analyst Brent Thill said the decline in Microsoft stock is likely due to Azure’s cloud platform revenue growth slowing and coming close to just in line with estimates, along with concerns about the dependence on a few companies in the company’s backlog.

Microsoft said its remaining performance obligations, the backlog of contracts that it expects to be paid for in the future, is currently $625 billion, more than double where it was a year ago.

However, about 45% of that is Microsoft’s massive deal with OpenAI, meaning investors could be concerned that Microsoft could be heavily affected if OpenAI eventually faces difficulties raising money to pay its hundreds of billions in contracts, Thill said.

Still, Microsoft has the ability to “monetize AI better than any software company” because the tech giant has several different ways to make money from the tech as it has “an application business, a security business, an infrastructure business with Azure,” Thill said.

Microsoft shares were down 5% in recent after-hours trading.

-Aaron McDade

Microsoft CEO: AI is Already ‘Larger Than Some of Our Biggest Franchises’

Despite being in the still relatively early days of its AI buildout and products utilizing the technology, Microsoft CEO Satya Nadella said Wednesday that the segment is already bigger than some of its well-known products, which include Windows software and Xbox gaming consoles.

“We are only at the beginning phases of AI diffusion and already Microsoft has built an AI business that is larger than some of our biggest franchises," Nadella said in Wednesday's press release, adding that Microsoft is “pushing the frontier across our entire AI stack to drive new value for our customers and partners.”

-Aaron McDade

Zuckerberg Says New AI Models Are Coming

During Meta’s earnings call, CEO Mark Zuckerberg said the company plans to release its latest AI models in the next few months.

“We’ll show the rapid trajectory that we’re on,” he said, and that Meta expects to “push the frontier” with its AI efforts.

Analysts at Jefferies said Meta went “full throttle” with its results Wednesday night, and reiterated a “buy” rating for the shares.

Meta shares extended their gains during the earnings call and were recently up 9% in after-hours trading.

-Kara Greenberg

Elon Musk’s Tesla has invested in Elon Musk’s xAI

Tesla said it earlier this month agreed to invest about $2 billion in the preferred stock of the artificial intelligence company, which Tesla CEO Musk controls.

xAI acquired X, the social-media company, last year, with Musk later saying Tesla and xAI weren’t going to merge. Tesla’s directors late last year declined to take a position on whether Tesla should invest in xAI. The deal is expected to close in the first quarter.

xAI earlier this month said it raised $20 billion from a group of investors. That announcement didn’t mention Tesla.

“Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round,” Tesla said today.

-David Marino-Nachison

New Optimus Design in the Works, Roadster Gets a Mention

Tesla’s quarterly report included updates on a range of in-the-works products, including a mention of a pricey sports car.

The company said in its presentation that it would unveil a new Optimus robot in the first quarter of 2026, reaffirming plans for the start of production in 2026. It also directed investors toward the “production ramps” of its Semi truck and Cybercab in the first half of the year.

And it briefly mentioned its “next-generation” Roadster, a two-door vehicle for which the company is currently taking reservations. “Preparations continue” for that vehicle, the company said. Some had hoped it would be in production last year.

-David Marino-Nachison

Tesla Outlook Doesn't Include Deliveries Forecast

Tesla, which in the past has shared detailed numerical outlooks for vehicle sales, in today's quarterly release did not do so.

“We are focused on maximum capacity utilization at our factories,” the company said. “Deliveries and deployments will be impacted by aggregate demand for our products, supply chain readiness and allocation decisions between sale to customers or use for our owned and operated fleet.”

The company earlier this year reported more than 1.6 million deliveries, down from about 1.79 million in 2024.

-David Marino-Nachison

Meta’s Spending Forecast Tops Projections

Meta’s anticipated capital expenditures for 2026 came in higher than expected.

The social media giant said it’s looking to spend $115 billion to $135 billion this year, up from $72.22 billion last year and well above the $110 billion Wall Street analysts were anticipating.

Meta said the figure was driven primarily by investments in its Meta Superintelligence Labs that’s been leading its AI efforts, along with its core business.

CEO Mark Zuckerberg said in a statement that he’s "looking forward to advancing personal superintelligence for people around the world in 2026."

-Kara Greenberg

Meta Stock Climbs on Record Revenues, Rosy Outlook

Shares of Meta climbed in after-hours trading as the social media giant posted fourth-quarter earnings that topped estimates and gave a rosy outlook.

Meta reported earnings per share of $8.88 on a 24% year-over-year jump in revenue to a record $59.89 billion as ad revenues surged.

Looking ahead, Meta said it expects first-quarter revenue of $53.5 billion to $56.5 billion, ahead of analysts’ projections.

Meta shares were up 5% recently.

-Kara Greenberg

Tesla Stock Climbs as Sales, EPS Top Estimates

Shares of Tesla rose in after-hours trading Wednesday after the EV maker turned in quarterly revenue and earnings that came in higher than Wall Street expected.

Sales, at $25.71 billion, topped Visible Alpha’s consensus expectation of $25.12 billion. Net income, at 60 cents per share, also came in higher than the Street expected.

Tesla’s stock, which finished Wednesday about flat, was recently up about 3.5% in late trading,

-David Marino-Nachison

Microsoft's Capex Grew More Than Expected Amid AI Push

Microsoft’s capital expenditures came in at $37.5 billion in the latest quarter, compared to the $34.3 billion that analysts had forecast.

The company said about two-thirds of that spending was for “short-lived assets” like GPUs and CPUs that are used in data centers and lose value as more advanced technology is released.

In its last report in October, Microsoft’s capex surged to $34.9 billion from $24.2 billion in the previous quarter as the company ramped up spending on data centers and other AI projects.

Ahead of the results, analysts had said they expected Azure revenue to continue growing as much or more than the consensus estimate this year as Microsoft brings more cloud computing capacity online.

Microsoft and other tech giants have faced questions in recent months about whether they’ll see an adequate return on the hundreds of billions they are investing in AI infrastructure.

-Aaron McDade

Microsoft Shares Slide Despite Earnings Beat

Microsoft shares slid in extending trading despite better-than-expected results from the software and cloud computing giant.

The company said it generated $81.3 billion in revenue in its fiscal second quarter, while adjusted earnings per share came in at $4.14. Analysts had forecast $80.32 billion in revenue and adjusted EPS of $3.95, according to estimates compiled by Visible Alpha.

Intelligent Cloud revenue, which includes Microsoft’s Azure cloud computing service and is a key indicator for AI demand the company is seeing, came in at $32.9 billion, above the $32.39 billion analyst consensus.

Microsoft shares were down about 5% recently.

-Aaron McDade

How Much Traders Expect Microsoft to Move After Earnings

Options pricing suggests traders expect Microsoft's (MSFT) stock could move close to 5% in either direction by the end of the week. A move of that size could lift Microsoft shares above $502 at the high end, or drag them down to around $460 at the low end.

The shares are down about 11% from when Microsoft last reported results in October, when the company topped estimates but said it would significantly boost its investments in AI infrastructure. Shares had closed at a record high around $542 the day before the results.

Amid lingering worries about the company's AI spending, investors will likely be eager to hear what executives have to say about capital expenditures, along with projections for the "Intelligent Cloud" segment, which includes Azure.

The company is expected to report revenue of $80.31 billion for its fiscal second quarter, up 15% year-over-year, with a 27% jump in Intelligent Cloud revenue to $32.39 billion. Earnings per share could come in at $3.87, up from $3.23 a year ago, according to estimates compiled by Visible Alpha.

Morgan Stanley analysts, who hold an "overweight" rating and $650 price target, recently wrote that their conversations with Microsoft executives and customers indicated Azure revenue should continue growing in line with or ahead of expectations as the company brings more data center capacity online this year.

Analysts remain overwhelmingly bullish on Microsoft, with 14 of the 15 analysts with current ratings tracked by Visible Alpha recommending buying the stock, compared to one neutral rating. Their mean target around $615 would suggest nearly 30% upside from the stock's close Tuesday.

-Aaron McDade

How Much Traders Expect Meta Stock to Move After Earnings

Options pricing suggests traders expect Meta Platforms (META) stock could move close to 6% in either direction by the end of this week. A shift of that size from recent levels around $672 could push shares as high as $712—or drag them back down to about $633, where they were earlier this month.

Meta's 2026 outlook, and what it has to say about its projected capital expenditures, could take the spotlight when the company reports, amid some worries it could be overspending on AI. Analysts at Bank of America said that could set the stock up for gains if Meta's expense forecast proves milder than feared, but warned a larger-than-expected spending outlook could fuel investors' concerns.

BofA also said Meta could top fourth-quarter estimates thanks to momentum in the ad business that accounts for the bulk of the company's revenue, which could soothe worries about AI spending. More details about Meta's rollout of ads on Threads, and reported moves to test premium subscriptions for several of its apps, could help too.

Meta is seen reporting fourth-quarter earnings per share of $8.17 on a nearly 21% year-over-year jump in revenue to a record $58.43 billion, according to estimates collected by Visible Alpha.

Wall Street analysts are overwhelmingly bullish on Meta's stock, which they believe still has room to rise after a roughly 13% climb in 2025. All of the 21 analysts with current ratings compiled by Visible Alpha have issued "buy" recommendations for the stock, with their mean target around $841 suggesting 25% upside from Monday's close.

-Kara Greenberg

How Much Traders Expect Tesla Stock to Move After Earnings

Options pricing suggests traders expect Tesla's (TSLA) stock could move about 5% in either direction by the end of the week.

A shift of that size from its recent level around $433 could push the stock back up to $456 or drag it down to $411. The stock has lost ground since hitting an all-time high of just below $500 in mid-December.

During the company's earnings call, investors will likely be listening closely to hear what CEO Elon Musk has to say about Tesla's developments in self-driving cars and robotics, which the CEO has previously suggested could eventually become the company's main revenue drivers as its EV sales come under pressure. In an interview at the World Economic Forum last week, Musk said he expects Tesla could start selling its Optimus humanoid robots to the public by the end of next year.

Optimus sales, along with Tesla's Full Self-Driving (FSD) software subscriptions, are among the metrics that would need to grow for Musk to earn tranches of stock as part of his newest compensation agreement. Earlier this month, Musk announced that Tesla will only offer FSD software under a recurring subscription starting next month, in a move that could help the company raise subscription revenues.

Tesla also recently confirmed it has removed human safety monitors from the front seat of some of its robotaxis currently operating in Austin, in what Morgan Stanley analysts suggested could mark an important milestone for the company's robotaxi strategy.

For the fourth quarter, Tesla is expected to report revenue of $25.12 billion, down about 2.3% from the same time a year ago, while adjusted earnings per share are forecast at $0.46, down from $0.60 last year, according to estimates compiled by Visible Alpha.

Wall Street analysts are divided on the stock. Of the 11 analysts with current ratings tracked by Visible Alpha, six consider it a "buy," compared to three "hold," and two "sell" ratings. Their average price target around $446 would represent just a 3% rise from its recent level.

-Aaron McDade

Here’s How to Stream Today’s Big Tech Earnings Calls 

Three Magnificent 7 companies report earnings today, which means three closely followed conference calls. (Should you listen, too? Here’s Investopedia’s take.)

Meta’s call is set to start at 4:30 p.m. ET; you can listen to it here. The company said it will publish a transcript of the call on the investor relations section of its site. 

Microsoft’s call is set for 5:30 p.m. ET; it can be streamed here. 

Tesla’s call is also scheduled for 5:30 p.m. ET. you can stream it here. Questions investors have submitted for consideration by management can be read here. 

-David Marino-Nachison

Could Earnings Breathe Life Into Mag 7 Stocks?

The Magnificent Seven have driven years of market gains. That may not continue to be the case.

This year has started with a mixed showing from the grouping of America’s biggest tech stocks, which accounted for over 40% of the S&P 500’s roughly 18% total return in 2025. 

Google parent Alphabet (GOOGL) and Amazon (AMZN), which are due to release quarterly results next week, are up about 7% and 5%, respectively since the start of 2026. Meta (META) and Nvidia (NVDA) are also up slightly, while Microsoft (MSFT) and Tesla (TSLA) have ticked lower, and Apple (AAPL), which reports earnings on Thursday, is down about 6%. The Roundhill Magnificent Seven ETF (MAGS) which tracks the group, is up 1% so far this year as of late Wednesday.

A more “risk-off” stance as geopolitical events rattled markets earlier this month could be partly to blame, along with concerns about an AI bubble—though the stocks’ recent divergence suggests that some are having a harder time winning over investors than others. Magnificent 7 earnings could shed more light on how they’re approaching a range of challenges and, perhaps, breathe fresh enthusiasm into their shares. 

For Tesla, that could mean sharing more about its developments in self-driving cars and robotics in the midst of an effort to reposition its business and the perception of the opportunity its stock offers. CEO Elon Musk, who’s previously suggested as much as 80% of the company’s value could eventually be driven by its Optimus humanoid robots, said in an interview at the World Economic Forum in Davos, Switzerland last week that he expects Optimus could be available to the public next year.

Meta and Microsoft could face questions about their capital expenditures amid worries about their hefty spending on AI. Investors will want to hear whether and when Microsoft expects to be able to boost its cloud capacity enough to keep up with demand, and if Meta's AI efforts are driving gains in its ad business.

On Thursday, Apple could impress with record sales in what is typically its strongest quarter of the year after signs of better-than-expected demand for its iPhone 17.  Many investors are still waiting for Apple to show progress with AI features and devices. Updates about new partnerships or other AI-related developments could help, with some analysts hoping Apple could soon identify an AI partner in China after announcing a deal with Google earlier this month. 

That Apple partnership, which Wedbush analysts called a "major validation moment" for Google's AI efforts with Gemini, was among the latest bits of good news for its parent Alphabet, which is set to report on Feb. 4. The tech giant logged the best performance of the Magnificent 7 last year after a major legal win for its search business, which has seen strong growth along with its cloud business. Citi analysts, who've made Alphabet their "top pick" in the internet sector, said they're looking for its results to top consensus estimates

-Kara Greenberg