This is a segment from the Forward Guidance newsletter. To read full editions, subscribe . Stocks were back in the green after Magnificent 7 giants Meta and Microsoft reported better-than-expected Q1 reports after the close yesterday. Following their respective earnings releases, shares of Microsoft gained as much as 7.8%, and Meta stock surged more than 5% in after-hours trading Wednesday night. At 2:15 pm ET Thursday, Meta was trading 5.2% higher, while Microsoft was up 9%. Meta reported earnings per share of $6.43 on revenue of $42.3 billion — coming in ahead of projections calling for $5.25 EPS on $36.4 billion in revenue. Executives also calmed investors by saying they’re not concerned about tariffs impacting ad revenue. “I think we’re well-positioned to weather the macroeconomic uncertainty,” CEO Mark Zuckerberg said on Wednesday’s call. In a rare move this earnings season, Meta also provided some positive guidance, upping its intended capital spend. Most of that is earmarked for AI investments. Microsoft also beat on EPS and revenue. The company reported EPS of $3.46 on $70 billion in revenue vs. the expected $3.22 EPS on $68.4 billion in revenue. Microsoft, like Meta, will also continue its investments in AI. Capital expenditures for the first quarter came in at $16.7 billion, slightly higher than projections. Microsoft execs uttered the word “tariff” just once on yesterday’s call, which shareholders surely loved. Overall, it’s two solid reports. But economic conditions still pose a threat for both firms. Next on the docket are Amazon and Apple, scheduled to post earnings this afternoon. Nvidia, the last of the Mag 7 to report, is scheduled to release on May 28. Get the news in your inbox. Explore Blockworks newsletters: Blockworks Daily : Unpacking crypto and the markets. Empire : Crypto news and analysis to start your day. Forward Guidance : The intersection of crypto, macro and policy. 0xResearch : Alpha directly in your inbox. Lightspeed : All things Solana. The Drop : Apps, games, memes and more. Supply Shock : Bitcoin, bitcoin, bitcoin.
