Yesterday, two tech heavyweights, Microsoft and Meta Platforms outright obliterated Wall Street analysts’ expectations and raised the bar higher yet again, injecting at the same time, a fresh shot of rejuvenated optimism in the recently stalling US equity markets, leading them to fresh record highs.

Microsoft’s superlative growth stemmed primarily from the outperformance of its cloud and AI businesses segments, with Azure annual revenue recording quarterly growth of 39%, contributing the most the company’s 18% year over year overall revenue growth. Microsoft’s CEO Nadella appeared satisfied with the performance and once again highlighted the strategic role of cloud and AI divisions and their importance in driving business transformation and innovation for the tech giant for the quarters to come.

Meta’s strong Q2 results were driven primarily by its core advertising business operations but also from heightened investments in artificial intelligence and the tech behemoth recorded its 10th consecutive quarter of reporting above estimates earnings data. Revenues were up by 22% on a year-over year basis.

CEO Mark Zuckerberg highlighted the strategic commitment to AI, noting Meta’s major investments in AI computing infrastructure, including hundreds of billions of dollars planned for multi-gigawatt AI data centres like the Hyperion facility. This underscores Meta’s vision of building “personal superintelligence” to assist individuals in various aspects of life, contrasting with the industry view of centralized AI automation

Microsoft’s share price jumped by over 6% in the aftermarket hours, post the announcement, and is up by over 21%, year-to-date. As for Meta Platforms, its stock price soared by over 11% post its earnings call and has shored up an impressive 30% year to date gain so far.

Traders are now awaiting in anticipation for Apple’s and Amazon’s earnings reports in today’s aftermarket hours session, hoping for robust results that would propel US indices further north.

Technical Analysis

META Chart – Meta Platforms soar by over 12% post a strong earnings call and Zuckerberg’s all-in mentality on AI

Resistance: 800 (R1), 840 (R2), 880 (R3)
Support: 740 (S1), 695 (S2), 640 (S3)