Meta, Microsoft and Tesla Set to Release Results

How Much Traders Expect Microsoft to Move After Earnings

FROM 5 minutes ago

Options pricing suggests traders expect Microsoft’s (MSFT) stock could move close to 5% in either direction by the end of the week. A move of that size could lift Microsoft shares above $502 at the high end, or drag them down to around $460 at the low end.

The shares are down about 11% from when Microsoft last reported results in October, when the company topped estimates but said it would significantly boost its investments in AI infrastructure. Shares had closed at a record high around $542 the day before the results.

Amid lingering worries about the company’s AI spending, investors will likely be eager to hear what executives have to say about capital expenditures, along with projections for the “Intelligent Cloud” segment, which includes Azure.

The company is expected to report revenue of $80.31 billion for its fiscal second quarter, up 15% year-over-year, with a 27% jump in Intelligent Cloud revenue to $32.39 billion. Earnings per share could come in at $3.87, up from $3.23 a year ago, according to estimates compiled by Visible Alpha.

Morgan Stanley analysts, who hold an “overweight” rating and $650 price target, recently wrote that their conversations with Microsoft executives and customers indicated Azure revenue should continue growing in line with or ahead of expectations as the company brings more data center capacity online this year.

Analysts remain overwhelmingly bullish on Microsoft, with 14 of the 15 analysts with current ratings tracked by Visible Alpha recommending buying the stock, compared to one neutral rating. Their mean target around $615 would suggest nearly 30% upside from the stock’s close Tuesday.

–Aaron McDade

How Much Traders Expect Meta Stock to Move After Earnings

FROM 9 minutes ago

Options pricing suggests traders expect Meta Platforms (META) stock could move close to 6% in either direction by the end of this week. A shift of that size from recent levels around $672 could push shares as high as $712—or drag them back down to about $633, where they were earlier this month.

Meta’s 2026 outlook, and what it has to say about its projected capital expenditures, could take the spotlight when the company reports, amid some worries it could be overspending on AI. Analysts at Bank of America said that could set the stock up for gains if Meta’s expense forecast proves milder than feared, but warned a larger-than-expected spending outlook could fuel investors’ concerns.

BofA also said Meta could top fourth-quarter estimates thanks to momentum in the ad business that accounts for the bulk of the company’s revenue, which could soothe worries about AI spending. More details about Meta’s rollout of ads on Threads, and reported moves to test premium subscriptions for several of its apps, could help too.

Meta is seen reporting fourth-quarter earnings per share of $8.17 on a nearly 21% year-over-year jump in revenue to a record $58.43 billion, according to estimates collected by Visible Alpha.

Wall Street analysts are overwhelmingly bullish on Meta’s stock, which they believe still has room to rise after a roughly 13% climb in 2025. All of the 21 analysts with current ratings compiled by Visible Alpha have issued “buy” recommendations for the stock, with their mean target around $841 suggesting 25% upside from Monday’s close.

–Kara Greenberg

How Much Traders Expect Tesla Stock to Move After Earnings

FROM 16 minutes ago

Options pricing suggests traders expect Tesla’s (TSLA) stock could move about 5% in either direction by the end of the week.

A shift of that size from its recent level around $433 could push the stock back up to $456 or drag it down to $411. The stock has lost ground since hitting an all-time high of just below $500 in mid-December.

During the company’s earnings call, investors will likely be listening closely to hear what CEO Elon Musk has to say about Tesla’s developments in self-driving cars and robotics, which the CEO has previously suggested could eventually become the company’s main revenue drivers as its EV sales come under pressure. In an interview at the World Economic Forum last week, Musk said he expects Tesla could start selling its Optimus humanoid robots to the public by the end of next year.

Optimus sales, along with Tesla’s Full Self-Driving (FSD) software subscriptions, are among the metrics that would need to grow for Musk to earn tranches of stock as part of his newest compensation agreement. Earlier this month, Musk announced that Tesla will only offer FSD software under a recurring subscription starting next month, in a move that could help the company raise subscription revenues.

Tesla also recently confirmed it has removed human safety monitors from the front seat of some of its robotaxis currently operating in Austin, in what Morgan Stanley analysts suggested could mark an important milestone for the company’s robotaxi strategy.

For the fourth quarter, Tesla is expected to report revenue of $25.12 billion, down about 2.3% from the same time a year ago, while adjusted earnings per share are forecast at $0.46, down from $0.60 last year, according to estimates compiled by Visible Alpha.

Wall Street analysts are divided on the stock. Of the 11 analysts with current ratings tracked by Visible Alpha, six consider it a “buy,” compared to three “hold,” and two “sell” ratings. Their average price target around $446 would represent just a 3% rise from its recent level.

–Aaron McDade

Here’s How to Stream Today’s Big Tech Earnings Calls 

FROM 27 minutes ago

Three Magnificent 7 companies report earnings today, which means three closely followed conference calls. (Should you listen, too? Here’s Investopedia’s take.)

Meta’s call is set to start at 4:30 p.m. ET; you can listen to it here. The company said it will publish a transcript of the call on the investor relations section of its site. 

Microsoft’s call is set for 5:30 p.m. ET; it can be streamed here. 

Tesla’s call is also scheduled for 5:30 p.m. ET. you can stream it here. Questions investors have submitted for consideration by management can be read here. 

–David Marino-Nachison

Could Earnings Breathe Life Into Mag 7 Stocks?

FROM 46 minutes ago

The Magnificent Seven have driven years of market gains. That may not continue to be the case.

This year has started with a mixed showing from the grouping of America’s biggest tech stocks, which accounted for over 40% of the S&P 500’s roughly 18% total return in 2025. 

Google parent Alphabet (GOOGL) and Amazon (AMZN), which are due to release quarterly results next week, are up about 7% and 5%, respectively since the start of 2026. Meta (META) and Nvidia (NVDA) are also up slightly, while Microsoft (MSFT) and Tesla (TSLA) have ticked lower, and Apple (AAPL), which reports earnings on Thursday, is down about 6%. The Roundhill Magnificent Seven ETF (MAGS) which tracks the group, is up 1% so far this year as of late Wednesday.

A more “risk-off” stance as geopolitical events rattled markets earlier this month could be partly to blame, along with concerns about an AI bubble—though the stocks’ recent divergence suggests that some are having a harder time winning over investors than others. Magnificent 7 earnings could shed more light on how they’re approaching a range of challenges and, perhaps, breathe fresh enthusiasm into their shares. 

For Tesla, that could mean sharing more about its developments in self-driving cars and robotics in the midst of an effort to reposition its business and the perception of the opportunity its stock offers. CEO Elon Musk, who’s previously suggested as much as 80% of the company’s value could eventually be driven by its Optimus humanoid robots, said in an interview at the World Economic Forum in Davos, Switzerland last week that he expects Optimus could be available to the public next year.

Meta and Microsoft could face questions about their capital expenditures amid worries about their hefty spending on AI. Investors will want to hear whether and when Microsoft expects to be able to boost its cloud capacity enough to keep up with demand, and if Meta’s AI efforts are driving gains in its ad business.

On Thursday, Apple could impress with record sales in what is typically its strongest quarter of the year after signs of better-than-expected demand for its iPhone 17.  Many investors are still waiting for Apple to show progress with AI features and devices. Updates about new partnerships or other AI-related developments could help, with some analysts hoping Apple could soon identify an AI partner in China after announcing a deal with Google earlier this month. 

That Apple partnership, which Wedbush analysts called a “major validation moment” for Google’s AI efforts with Gemini, was among the latest bits of good news for its parent Alphabet, which is set to report on Feb. 4. The tech giant logged the best performance of the Magnificent 7 last year after a major legal win for its search business, which has seen strong growth along with its cloud business. Citi analysts, who’ve made Alphabet their “top pick” in the internet sector, said they’re looking for its results to top consensus estimates

–Kara Greenberg