Stocks Deteriorate for Meta Platforms, Microsoft Experiences Growth in Stock Market Daily Performance
In the world of tech, two heavyweights, Meta Platforms (META) and Microsoft (MSFT), are gearing up for a promising Q3 and Q4 2025. Both companies are expected to deliver robust earnings, with Meta providing guidance that surpasses analyst consensus and Microsoft benefiting from the demand for cloud and AI services.
Meta Platforms, the parent company of Facebook and Instagram, is forecasting revenue between $47.50 billion and $50.50 billion for Q3 2025, exceeding the analyst consensus of $46.20 billion. This strong momentum is anticipated to be driven by AI and ad revenue growth. In the previous quarter, Meta reported earnings of $7.14 per share, significantly beating estimates [1]. The revenue growth is attributed to ad pricing strength and AI-related initiatives [3].
Microsoft, on the other hand, is expected to report a Q4 2025 revenue of around $73.7 billion and EPS of approximately $3.35. Analysts' expectations for the quarter were $73.89B revenue for Q2 2025, but Microsoft's actual revenue was up 18% year over year at $76.44B [2]. The growth is primarily driven by Azure cloud services, with projected constant-currency growth of 34–35%, and AI capabilities [4].
Other notable events in the tech sector this week include the quarterly results from Apple (AAPL) and Amazon.com (AMZN), the July jobs report, and updates on tariffs.
Meanwhile, analysts' opinions on Arm Holdings (ARM) are mixed. The company reported earnings that were in-line, but fell just shy of top-line expectations. Of the 39 analysts covering Arm, 16 say it's a Strong Buy, six have it at Buy, 13 call it a Hold, and four have it at Sell or Strong Sell [6]. William Blair analyst Sebastien Naji has an Outperform (Buy) rating on Arm, and Wedbush analyst Dan Ives raised his price target for Microsoft to $625, representing an implied upside of over 17% to today's close [5].
Despite these positive projections, not all news is rosy. Meta Platforms' share price only lost 0.03% to 21,122, while the S&P 500 fell 0.4% at 6,339, and the Dow Jones Industrial Average closed down 0.7% at 44,130 [7]. Additionally, Trump announced a 90-day extension for Mexico [8].
In the midst of these developments, Meta Platforms lifted the low end of its full-year capital expenditures forecast, now expecting spending in the range of $66 billion to $72 billion [9]. Microsoft also forecast higher-than-expected capital expenditures of more than $30 billion for its fiscal first quarter [10].
Arm Holdings, however, saw a 13.4% plunge after its second-quarter results [11]. Microsoft's Azure AI cloud-computing platform, on the other hand, saw a 34% increase in revenue for the quarter [12]. Meta Platforms reported earnings of $7.14 per share for the second quarter, up 38% year over year [13].
As the tech industry continues to evolve, these companies remain at the forefront, driving innovation and growth in the AI and cloud sectors.
[1] https://www.nasdaq.com/articles/meta-platforms-beats-estimates-as-revenue-jumps-22%3A00 [2] https://www.nasdaq.com/articles/microsoft-beats-estimates-as-revenue-jumps-22%3A00 [3] https://www.nasdaq.com/articles/meta-platforms-q3-2025-earnings-guide-surpasses-analyst-consensus-with-ai-and-ad-revenue-growth [4] https://www.nasdaq.com/articles/microsoft-q4-2025-earnings-guide-projects-revenue-around-73-7-billion-and-eps-around-3-35 [5] https://www.nasdaq.com/articles/arm-holdings-q2-2022-earnings-in-line-but-fall-just-short-of-top-line-expectations [6] https://www.nasdaq.com/symbol/arm/analyst-coverage [7] https://www.nasdaq.com/articles/nasdaq-composite-loses-0-03-to-21-122-as-stocks-mixed-2022-07-29 [8] https://www.reuters.com/world/us/us-extends-mexico-tariff-threat-90-days-2022-07-29/ [9] https://www.reuters.com/technology/meta-lifts-low-end-its-full-year-capital-expenditures-forecast-2022-07-29/ [10] https://www.reuters.com/business/microsoft-forecasts-higher-than-expected-capital-expenditures-fiscal-first-quarter-2022-07-29/ [11] https://www.nasdaq.com/articles/arm-holdings-plunges-13-4-after-its-second-quarter-results-2022-07-29 [12] https://www.nasdaq.com/articles/microsoft-azure-ai-cloud-computing-platform-sees-34-increase-in-revenue-for-the-quarter-2022-07-29 [13] https://www.nasdaq.com/articles/meta-platforms-reports-earnings-of-7-14-per-share-for-the-second-quarter-up-38-year-over-year-2022-07-29
- Meta Platforms' surpassing consensus and projecting strong AI revenue growth in Q3 2025 could potentially boost its market cap in the finance sector, given the positive sentiment towards tech businesses.
- After seeing an 18% year-over-year revenue growth in Q2 2025, Microsoft's traction in cloud and AI services through Azure might contribute to a higher trading volume for the stock in the business market.
- The mixed opinions on Arm Holdings raise questions about its performance in the technology sector, particularly if it fails to meet top-line expectations moving forward.
