Mag 7 Stocks MSFT, META, TSLA Report Earnings Today: What to Expect

Microsoft MSFT, Meta Platforms META and Tesla TSLA — three giants of the Magnificent 7 group — are scheduled to report their quarterly results today. The rest — Alphabet GOOGL, Amazon.com AMZN, Apple AAPL and NVIDIA NVDA — will report their quarterly results soon.The Magnificent 7 has been benefiting from the massive proliferation of artificial intelligence (AI), which has increased the need for data center capacity expansion and the advent of Generative AI (GenAI).Microsoft-backed OpenAI is estimated to have spent close to $3 billion on training models and data in 2024, per data from DeepLearning.ai. According to Reuters, U.S. tech giants are estimated to spend roughly $250 billion on AI infrastructure, with META alone planning to spend between $60 billion and $65 billion in capital expenditures on AI infrastructure in 2025.However, DeepSeek’s latest low-cost AI model has rattled the tech giants with NVIDIA losing roughly $600 billion on Monday. DeepSeek’s open-source models that were released last week, DeepSeek-R1-Zero and DeepSeek-R1, showed similar performance to that of OpenAI’s reasoning models and Meta Platforms’ Llama models on leading benchmarks, such as the AIME 2024.Although DeepSeek’s low-cost models have put the U.S. technology giants under threat, we believe these bigwigs are well-positioned to benefit from the increasing deployment of AI and GenAI technology. This earnings season is expected to give investors a glance at their monetization strategy as well as capital spending plan.Let’s delve deep to find out what the Magnificent 7 stocks are expected to report this earnings season.MSFT to Ride on Strong Azure UsageMicrosoft has benefited most from the rapid deployment of GenAI, thanks to its collaboration with OpenAI. This Zacks Rank #3 (Hold) company is benefiting from its strategic focus on cloud services, particularly Azure and the Office 365 suite.Robust demand for its cloud infrastructure monitoring, web-based application performance management and human capital management solutions is expected to have aided MSFT’s top-line growth in the second quarter of fiscal 2025.Microsoft Corporation Price and EPS Surprise Microsoft Corporation price-eps-surprise | Microsoft Corporation QuoteMETA Benefits From Strong Advertising GrowthSocial media giant META is riding on strong advertising revenue growth prospects. It has been leveraging AI and machine learning to improve the potency of its social-media offerings, including Facebook, Instagram, WhatsApp and Threads.Effective usage of AI has been aiding this Zacks Rank #3 stock to keep its users engaged. AI-driven feed recommendations have been a key catalyst for Meta Platforms.Meta Platforms, Inc. Price and EPS Surprise Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. QuoteTSLA Rides on Strong Vehicle DeliveryElectric Vehicle maker Tesla’s fourth-quarter 2024 results are expected to benefit from robust deliveries, powered by AI, including its most successful Model 3 and Y. TSLA’s margins are also expected to improve on a year-over-year basis amid declining production cost per vehicle.This Zacks Rank #3 company delivered 495,570 units during the fourth quarter, achieving a new record. The delivery numbers rose 2.3% and 7% on a yearly and sequential basis, respectively.Tesla, Inc. Price and EPS Surprise Tesla, Inc. price-eps-surprise | Tesla, Inc. QuoteGOOGL Benefits From Gemini AdoptionAlphabet is set to report its fourth-quarter 2024 results on Feb. 4. It is leveraging AI to attract new clients, win larger deals and deepen product adoption among existing customers. Its Gemini AI models are currently used by more than two billion users monthly across products and platforms. This rapidly expanding user base is expected to have boosted its top-line growth in the to-be-reported quarter.This Zacks Rank #3 stock has also been expanding its AI proficiency through the frequent updates of its models. In December, Alphabet unveiled Gemini 2.0, its most capable model that powers AI agents.Alphabet Inc. Price and EPS Surprise Alphabet Inc. price-eps-surprise | Alphabet Inc. QuoteAMZN Rides on Prime MomentumAmazon is set to report its fourth-quarter 2024 results on Feb. 6. The e-commerce giant is benefiting from solid Prime momentum, owning ultrafast delivery services and a strong content portfolio.AMZN’s strategic expansion of its Amazon Bedrock platform is positioning it as a frontrunner in the enterprise AI race. The introduction of automated reasoning checks has made Amazon the first provider of a built-in safeguard against AI hallucinations, a critical feature for regulated industries like healthcare and financial services.This Zacks Rank #2 (Buy) company’s strong global presence and growing adoption of AI platforms remains a plus. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Amazon.com, Inc. Price and EPS Surprise Amazon.com, Inc. price-eps-surprise | Amazon.com, Inc. QuoteApple to Suffer From Sluggish iPhone SalesMeanwhile, Apple is expected to report a sluggish first-quarter fiscal 2025 on Jan. 30 due to weak iPhone sales. Lackluster China sales due to stiff competition from Chinese vendors like Huawei and Xiaomi are expected to have hurt AAPL’s results in the to-be-reported quarter.Nevertheless, an expanding subscriber base has been a key catalyst for Apple’s Services business, which is riding on the popularity of the App Store and a growing installed base of devices. This is expected to have partially negated the weakness in iPhone sales.This Zacks Rank #4 (Sell) company’s Mac sales are expected to increase 17.3% year over year in the fourth quarter of calendar 2024, per IDC data. The iPhone maker is estimated to have shipped 7 million Macs, grabbing a market share of 10.1% compared with 8.8% in the year-ago quarter.Apple Inc. Price and EPS Surprise Apple Inc. price-eps-surprise | Apple Inc. QuoteNVIDIA Rides on Strong Demand for Its GPUsNVDA is set to report its fourth-quarter fiscal 2025 results on Feb. 26. It has been benefiting from the accelerating usage of its GPUs, including Hopper and Ampere architectures. A surge in hyperscale demand and higher sell-ins to partner across the Gaming and ProViz end markets following the normalization of channel inventory are also acting as tailwinds for the chipmaker.NVIDIA’s GPUs are rapidly benefiting from the proliferation of AI. By applying its GPUs in AI models, this Zacks Rank #2 company is expanding its base in other untapped markets like automotive, healthcare and manufacturing, which are likely to have supported its earnings and revenues in the to-be-reported quarter.NVIDIA Corporation Price and EPS Surprise NVIDIA Corporation price-eps-surprise | NVIDIA Corporation QuoteFind the latest earnings estimates and surprises on Zacks Earnings Calendar.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks