Following months of turbulence unleashed by US President Donald Trump’s trade war, tech giants Microsoft and Meta posted better-than-expected results in the first quarter of the year, providing some reprieve for investors.
For the January-March period, Meta, the parent company of Facebook and Instagram, reported a net quarterly profit of $ 16.64 billion, or $ 6.43 per share, up 35% year over year.
Revenue increased by 16 percent, reaching $ 42.31 billion, which is higher than Wall Street’s consensus of $ 44.41 billion.
Microsoft reported a net quarterly profit of $ 25.8 billion, or $ 3.46 per share, up 18% year over year.
Revenue for the business exceeded expectations by $ 70.1% year over year and by 13% year over year.
Both businesses cited artificial intelligence (AI) as a significant growth driver, easing investor concerns about a potential decline in demand for the burgeoning technology.
While Microsoft reported strong growth in its cloud computing business, while Meta recently incorporated AI tools into its top-tier revenue source, advertising.
Alphabet, Google’s parent company, reported a better-than-expected $ 90.23 billion quarterly revenue last week, which includes significant investment in AI.
The US tech sector, whose share prices have been on a rollercoaster ride since Trump’s arrival on January 20, is benefitted by the results.
In the first 100 days following Trump’s inauguration, the market value of the top seven US tech companies, including Microsoft, Meta, Nvidia, Amazon, Tesla, Apple, and Alphabet, dropped by 24 percent, or $4.2 trillion.
Businesses and unnerved investors are anxiously awaiting Trump’s next steps after he announced a 90-day pause on so-called “reciprocal” duties that target almost all nations, including a 145 percent duty on China.
According to the US Department of Commerce on Wednesday, the US economy dropped 0.3% in the first quarter of 2025, adding to worries that the country will likely enter recession this year.
CEO Mark Zuckerberg stated in an earnings call with investors that Meta is “well-positioned to navigate the recent months’ macroeconomic uncertainty.”
Source: Aljazeera
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