The income of technology giants dominate the week, Microsoft and Meta taking the ground today. After a year of Fuelled media threshing, investors want proof that all major speeches and even greater spending result in sustainable growth, or at the very least showed the first signs of doing so.
Meta between its first quarter of 2025 results with the price of its action to decrease a quarter from the summits of February. Income is expected to increase by 13.6% in annual sliding to $ 41.4 billion and BPA to increase by 12.2%. It is clearly not a bad place to be, but it is a slowdown marked compared to the growth of 20% + in the last quarter and would be the lowest increase in Meta's profits since the first quarter of 2023. The company's advertising engine – still responsible for 96% of income – begins to spray under the weight of pressures related to the prices and the drop in the demand of Chinese advertisers like Temu and Shein.
At the same time, Meta is increasing with its capital expenses of 60 to 65 billion dollars, mainly targeting AI and advertising infrastructure. With margins that were to go from 43.1% to 32.5%, investors must see more than user growth and Flashy AI demos. They will want signs that smarter advertisements and higher prices compensate for economic drag and that society plans to counter any slowdown that can strike the margins.
Microsoft, meanwhile, still feels the heat of missing it Cloud in the last quarter. Azure income growth has slowed down and the guidelines were disappointed, which caused a 6% drop in the share price. This quarter, revenues should reach $ 68.4 billion, a flat quarter in the third, with a BPA at $ 3.22. Investors will look closely Azure – if Microsoft cannot keep its momentum from the cloud, questions about its dominant AI positioning will follow.
Its revenue execution rate of $ 13 billion is impressive, but without clearer signs of product monetization like Microsoft 365 Copilot and the Azure Openai service, enthusiasm will fade. Unlike Meta, Microsoft is less directly exposed to prices, but if corporate budgets are tightening, even its subscription -based commercial model could feel the pressure.
For Microsoft, the drop in the course of its shares was less severe, down 11% compared to its January summits, but its own record is now eight months in the past, a clear sign that the group has not yet turned a convincing history for investors.
The two giants enter income in this season at a crossroads. The history of AI is no longer enough – it is now time to show where the money took place.
