Key Points
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Tech stocks have done much better than expected today.
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Many of these companies have trounced earnings expectations and continued to grow.
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Wall Street is upbeat due to these surprises, though other non-tech sectors haven’t done as well.
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Solid earnings from Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META) caused the stock market to accelerate more today. Microsoft and Meta are big enough to nudge up indexes on their own. Wall Street optimism has been lifted by several other tech companies beating earnings estimates and this optimism has spilled over into the rest of the market.
These earnings reports have offset the bearishness from macro reports that were slightly worse than expected. The US economy contracted at an annualized rate of 0.3% in Q1 2025, and this was the first negative print since Q1 2022 and fell short of expectations. Tariffs have also created uncertainty, but consumers spending has held strong due to Americans rushing to buy more ahead of tariffs.
Here’s a market update as of 10:45 A.M (ET) today.
- The S&P 500 is up 73.4 points, or 1.33%.
- The Nasdaq Composite is up 389.8 points, or 2.25%.
- The Dow Jones Industrial Average is up 303.99 points, or 0.75%.
Microsoft and Meta Trounce Expectations
Microsoft and Meta posted solid earnings reports that surpassed Wall Street expectations.
As for Microsoft, it grew revenue by 13% year-over-year to $70.1 billion in Q1. This beat analyst expectations fo $68.42 billion. EPS also came in well above estimates at $3.46 per share vs. $3.22 expected.
Microsoft’s Azure was a standout and revenue grew 33% year-over-year. The company previously canceled some data center leases early this year, and this led to significant fears that Microsoft’s AI momentum was plateauing. Q1 results have shown that that is not at all the case.
MSFT is up 9%.
Meta Platforms’ beat wasn’t as stellar, but it was still notable enough to lead to solid gains for the stock. It posted revenue of $42.31 billion in Q1, up 16% year-over-year and well above analyst expectations of $41.4 billion. EPS also came in at $6.43 vs. estimates of $5.28.
Investors feared that Meta’s advertising business would slow down due to tariff-induced ad spending cuts, but that hasn’t happened yet. It is still the go-to for companies that are navigating uncertainty this year. The company also raised its CapEx guidance for 2025 from $60 billion to $65 billion to $64 billion to $72 billion.
Notable Gainers Today
- Trivago (NASDAQ: TRVG) is up 31% after the company reported a surge in revenue.
- E2open (NYSE: ETWO) is up 27% after a solid earnings report that beat expectations.
- CommScope (NASDAQ: COMM) is up 24.6% after the company beat the EPS forecast.
- Tandem Diabetes (NASDAQ: TNDM) is up 16.7% after it reported a 22.3% revenue increase in Q1.
- NETGEAR (NASDAQ: NTGR) is up 14.3% as Q1 earnings beat estimates.
Many other stocks are also up big. The broader market is rallying today, and this is earnings season. TTMI, FTDR, GTLS, ATI, WULF, APLD, CRWV, PWR, and OLO are all up 10-15%.
Notable Losers Today
There haven’t been many big-name losers today due to broader market optimism.
- Arvinas (NASDAQ: ARVN) is down 27% due to the company eliminating trials and reducing its workforce.
- Organon & Co (NYSE: OGN) is down 22.7% after lower Q1 adjusted earnings and revenue and a dividend cut.
- Confluent (NASDAQ: CFLT) is down 15.1% as it cut its revenue guidance for the full year by 1.3%.
- Glaukos (NYSE: GKOS) is down 15.3% after the company’s revenue guidance came in below expectations.
- Alamos Gold (NYSE: AGI) is down 13.3% after it missed Q1 earnings expectations.
QCOM and LLY also declined significantly today due to guidance misses.
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