Meta & Microsoft earnings reaction

Chris Beauchamp IG

Please see the following comment from Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Microsoft moves higher while Meta slumps after earnings

We are seeing a dramatically divergent reaction to tonight's big earnings. Microsoft appears to be back on track, which is just what the embattled stock price needs. A solid beat on earnings and revenue was underpinned by a 27% jump in Cloud computing revenue, and the commercial backlog remains impressive. The shares have made gains in recent days, and these numbers would appear to reinforce the positive momentum.

It is a different tale for Meta, thanks to the earnings miss and the new increase to spending forecasts. Like Alphabet, this may prove to be Meta's most impressive bet on long-term growth, but the eye-watering spending levels are still making investors nervous. The post-FOMC carnage meant that investors were not in the mood for this kind of news, even if the stock managed to bounce off the immediate lows.

Author

Chris Beauchamp

Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.

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