Meta, Microsoft, Amazon and Apple Have Released Results

US indices started May on a high, with the S&P 500 up 0.15%, DJIA rising 0.35% and the Nasdaq 100 up 0.13% at market close on April 30, 2025. This was despite China reporting weaker-than-anticipated manufacturing activity, which could hurt global growth, and the US Q1 GDP declining 0.3% quarter-on-quarter, the sharpest fall in 3 years. So, what sent the US stock markets up? Microsoft and Meta Platforms had reported higher-than-expected company earnings on April 30. Can just two stocks have such a significant impact on indices?

Here’s what you should know to make informed index trading decisions. But before that, let’s dive deeper into the results of the most influential stocks.

Meta Platforms Reports Beat Results

Meta reported its Q1 2025 EPS at $6.43, compared to the consensus expectations of $5.28, on revenue of $42.31 billion, ahead of the estimated $41.40 billion. The company’s sales were up 16% year over year, while net income rose 35%. For Q2, Meta expects reduced ad spending from e-commerce exporters in Asia. The company also expects an increase in capital expenditure for 2025, partly due to “an increase in the expected cost of infrastructure hardware.”

“We’ve had a strong start to an important year, our community continues to grow and our business is performing very well,” said Meta’s CEO, Mark Zuckerberg, adding, “We’re making good progress on AI glasses and Meta AI, which now has almost 1bn monthly actives.”

The stock rose 5% after the company earnings announcement due to the beat Q1 results and Q2 guidance in line with the consensus expectations.

Microsoft Beats Expectations

The company’s earnings beat analyst expectations for the fourth successive quarter, with EPS of $3.46 versus the consensus of $3.22 on revenues of $70.1 billion, up 13% and ahead of the expected $68.42 billion. The better-than-expected results were driven by Azure’s strong performance. Microsoft also issued a “surprisingly strong” Q3 guidance, with Azure expected to grow 34%-35%. Although the company expects its capex to increase in the new fiscal year, it will rise at a slower pace than in fiscal 2025. The company guided to operating margins of 43.35%, slightly below the consensus of 43.5%.

The guidance relieved investor concerns regarding the impact of the sweeping Trump tariffs on tech companies. As a result, the stock was up 9% in extended trading after the earnings call.

Amazon Issued Disappointing Guidance

The e-commerce giant also announced better-than-expected Q1 results EPS of $1.59, ahead of the expected $1.36, on revenue of $155.67 billion, compared to the consensus of $155.04 billion. However, its Q2 guidance was below the estimates, with the company guiding to operating income of $13 billion to $17.5 billion versus the consensus of $17.8 billion. Amazon cited “tariffs and trade policies” and “recessionary fears,” leading to uncertainty during Q2.

The stock declined over 2% following the announcement, despite the beat results.

Apple’s Stock Declines

Apple’s Q2 results beat expectations with EPS of $1.65, ahead of the $1.63 consensus, on revenue of $95.4 billion, which beat the expectations of $94.66 billion. However, its Services division, which is closely watched by analysts and investors, reported lower-than-expected results. What might have spooked investors more was Apple’s expectations that Trump’s tariffs would add $900 million to its Q2 costs. CEO Tim Cook said that it was “very difficult” to predict beyond June “because I’m not sure what will happen with tariffs.”

Apple also expects its overall revenue to rise in the “low to mid-single digits” in the second quarter. So, unsurprisingly, the stock fell 4% in after-hours trading following the company’s earnings call.

What Does This Mean for Index Trading

As mentioned in the beginning, major US indices rose after Meta and Microsoft released their earnings. However, despite the decline in Amazon and Apple’s shares, the S&P 500 had risen over 1%, the Dow Jones was up 0.66% and the Nasdaq saw the highest gain of over 2% by May 2. The S&P 500 and DJIA recorded their eighth successive session of gains.

It is important to understand this disproportionate impact of some stocks on indices to make informed index trading decisions. The impact also highlights the benefits of trading indices, especially the way the outperformance of some stocks can compensate for the underperformance of others.

The stocks of tech giants like Microsoft, Meta, Amazon and Apple have an especially strong influence on the S&P 500 and the tech-heavy Nasdaq 100. This is due to their massive market capitalisation. Their combined market value makes up a significant portion of the overall value of these indices. In addition, these stocks are not just indicators of the strength of the technology sector, but they also indicate broader trends in the US economy and market sentiment.

Also, regardless of the guidance, all four members of the Magnificent 7 released company earnings that helped alleviate concerns regarding whether the AI boom is really a bubble waiting to burst. They also allayed fears that the Trump tariffs would hurt corporate performance and economic growth.

Therefore, index trading decisions must be taken after analysing the larger picture while also keeping an eye on the performance of individual companies, especially those that have a major impact on the performance of your chosen index. Trading indices via CFDs can be a way to make the most of market moves in either direction, since CFDs allow you to speculate on both rising and falling prices. However, remember that risk management is of paramount importance as is robust analysis.

To Sum Up

• Meta, Microsoft, Amazon and Apple posted beat results.
• Meta and Microsoft also announced optimistic future guidance.
• The guidance released by Amazon and Apple missed expectations.
• The stocks of Meta and Microsoft rose after the company earnings call.
• The stocks of Amazon and Apple fell after the call.
• Major indices, such as the DJIA, S&P 500 and Nasdaq 100, rose after the earnings releases.
• Stocks of tech giants have a disproportionate impact on indices like the S&P 500 and Nasdaq 100.
• It is important to keep an eye on individual company earnings and the broader market trends and sentiment while trading indices.
• CFDs are a popular way to trade indices.

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