META PLATFORMS
Meta reported revenues of $51.2 billion for the third quarter, marking a 26% increase year-over-year.
Daily active users reached 3.54 billion, while ad impressions rose 14% and the average price per ad increased 10%.
These figures clearly show that Meta’s family of apps (Facebook, Instagram, WhatsApp) continues to dominate the online engagement and advertising space.
However, despite the strong numbers, net income came in at just $2.7 billion, or $1.05 per share.
The reason? A one-time tax charge of $16 billion due to the new U.S. tax legislation.
This was a non-recurring expense, but it significantly affected the results.
Without this tax hit, net income would have been $18.6 billion, or $7.25 per share, meaning the company continued to generate robust profits despite the tax shock.
Still, investors focused on rising expenses, as Meta projects $116–118 billion in spending for 2025, with an even sharper increase expected in 2026 — mostly tied to investments in AI, computing infrastructure, and R&D.
Management made it clear that it will keep investing aggressively to dominate the AI sector, aiming to bring new models and platforms to market.
The result? Meta’s stock plunged 7% after hours, closing yesterday down 11% overall.
Investor fears over growing costs outweighed the strong growth numbers.
MICROSOFT
Next up, Microsoft.
The tech giant also delivered strong results, with revenue of $77.7 billion (+18%) and net income of $3.73 per share, well above estimates.
Azure continues to soar, posting 40% revenue growth, while Microsoft’s overall cloud segment hit $49.1 billion.
Meanwhile, the Productivity & Business Processes division (which includes Office and LinkedIn) recorded $33 billion in revenue (+17%).
However, there were some clouds on the horizon.
Microsoft announced it will significantly increase spending in 2026, mainly on GPUs and CPUs required for its artificial intelligence projects.
CEO Satya Nadella was clear: Microsoft sees a huge AI opportunity and doesn’t want to miss it, so it will invest aggressively.
At the same time, investors were concerned about the impact of its partnership with OpenAI, which reduced quarterly net income by $3.1 billion.
Result: Microsoft’s stock fell 5% immediately after the announcement, eventually closing down 2.9%.
Even though the results were excellent, AI-related cost concerns kept the stock under pressure.
Now to our favorite, Alphabet — and here, the story was completely different.
While Meta and Microsoft triggered cost worries, Google simply delighted investors.
The company reported revenue of $102.3 billion, surpassing for the first time the $100 billion milestone and beating analyst expectations of $100.1 billion.
Net income jumped 33% to $35 billion, while earnings per share (EPS) soared to $2.87 (vs. $2.27 expected).
Google Cloud posted explosive growth of +34%, while YouTube ad revenue rose 15%.
The “Subscriptions, Platforms, and Devices” segment grew +20%, thanks to strong performance from Google One and YouTube Premium.
Even the “Other Bets” category — including wearables and AI — improved, with Gemini users surpassing 650 million monthly.
The company also raised its CapEx forecast for 2025 to $91–93 billion (up from ~$84 billion).
This shows that Google, too, is investing heavily in AI — but doing so with such revenue and profit momentum that the market is rewarding it.
Best part? Alphabet’s stock jumped 6% right after the report and ended the session up 2.45%.
AMAZON
Finally, Amazon — which also posted outstanding results yesterday.
The company beat expectations with $180.2 billion in revenue, up 13% year-over-year.
Net income reached $1.98 per share, up 16% from last year and $0.37 above forecasts.
AWS (Amazon Web Services) grew 20%, hitting $33 billion, while Amazon’s advertising business — its fastest-growing division — generated $17.7 billion, topping expectations.
And since we mentioned AWS, it’s worth comparing the big three rivals: AWS, Azure, and Google Cloud.
As expected, Amazon’s stock surged over 10% after hours, showing that investors reacted very positively to the company’s strong performance.
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