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Meta’s (META) record slide sets up earnings test. (00:14) All eyes on Microsoft (MSFT) earnings. (01:17) Amazon’s (AMZN) grocery push is working. (02:31)
This is an abridged transcript.
Meta Platforms (META) reports second-quarter earnings after the closing bell today, following its longest losing streak on record.
The stock has fallen for nine consecutive trading sessions, sliding nearly 12% from its July intraday high of $681.90 to $593.41 ahead of the earnings release.
From a technical perspective, META is trading below its 50-day moving average ($605.62), 100-day moving average ($614.70), and 200-day moving average ($637.48), while its 14-day Relative Strength Index has fallen to 43, signaling weakening momentum.
Options traders are pricing in a move of about 6.95% in either direction following the results, reflecting expectations for elevated volatility.
Wall Street expects Meta to report earnings per share of $7.40 on revenue of $60.29B. Investors will be watching for updates on AI-powered advertising tools, AI infrastructure spending, capital expenditures, and forward guidance as the company continues its aggressive investment in artificial intelligence.
Microsoft (MSFT) is also set to post earnings today after the bell.
For the fourth quarter, investors are keeping an eye on the Azure cloud business as well as capital spending for the year.
Wall Street expects Microsoft to post EPS of $4.24 on revenue of $87.63B, implying a rise of 14.8% during the quarter.
Traders are pricing in a post-earnings move of about 6.23% in either direction.
Tech giants including Microsoft, Alphabet (GOOG) (GOOGL), Meta Platforms (META) and Amazon (AMZN) are pouring hundreds of billions of dollars into cloud and AI infrastructure, aiming to capitalize on the rapidly growing demand. Although investors have so far rewarded these companies and their aggressive AI investment, some are now seeking tangible returns.
In calendar year 2026, Microsoft said it plans to invest about $190B in capital expenditures, which exceeds analyst forecasts for spending of over $150B.
Investors will closely monitor Microsoft Copilot monetization, especially after the company has come under scrutiny that the AI chatbot and assistant is falling behind.
Amazon (AMZN) saw the biggest increase in grocery market share in the U.S. over a one-year period that ended on June 30
According to tracking by Numerator, Costco (COST), Walmart (WMT), Trader Joe’s, and Aldi also added market share, while H-E-B, Dollar General (DG), Publix, and Target (TGT) held steady for the same period.
Meanwhile, Kroger (KR), Albertsons (ACI) and Sam’s Club (WMT), saw market share losses in the same period.
Amazon’s (AMZN) grocery business is a hybrid of online delivery, physical stores, and marketplace-style grocery shopping, with the biggest emphasis now on online grocery and everyday essentials.
Amazon (AMZN) reports earnings tomorrow after the closing bell.
What’s Trending on Seeking Alpha
Oil rises after-hours as Iran attacks U.S. troops, rejects Omani proposal to share Strait of Hormuz
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Stock index futures are higher before the opening bell.
Crude oil is up 3.4% at nearly $82. Brent crude is up 3.5% at $87.
The FTSE 100 is little changed and the DAX is down 0.3%.
One stock on the biggest movers list: Avis Budget Group (CAR) -13% – Shares plunged after the car rental company missed Q2 revenue and earnings expectations, despite a sharp improvement in profitability and record fleet utilization.
Economic calendar:
Programming note: Wall Street Lunch will be published after the FOMC announcement and press conference.
