With the AI infrastructure stocks in free-fall, the last thing the broader market needs is the hyperscalers imploding. There was bad news minutes ago when Meta reported a sizable second-quarter earnings miss, but Microsoft’s just-reported beat may bail things out.
The company reported fiscal fourth-quarter EPS of $4.74 versus $4.24 expected, and revenue of $90.1 billion against $87.6 billion expected.
The all-important capex spending guidance wasn’t included in the results, but the company will presumably provide details during its post-earnings conference call.
Shares are up 2% after-hours, while Meta continues 5.5% lower.
Meta (META) minutes ago reported second-quarter EPS of $6.18 versus Street estimates of $7.14. Revenue of $60.8 billion topped forecasts for $60.4 billion.
The mid-point of third-quarter revenue guidance of about $63 billion was in-line with estimates.
The company lifted the lower end of full-year AI-related capex spending, now seeing $130 billion-$145 billion versus $125 billion-$145 billion previously.
Shares are lower by 5.4% in after-hours trading.
Any good vibes from the barely dovish tilt to the Kevin Warsh press conference were lost as President Trump — speaking with reporters in the Oval Office — said the U.S. will respond to Iran’s attack against American forces in Jordan last night.
His remarks sent oil back to near its session high, up 7.2% to $85 per barrel.
The Nasdaq has tumbled to its session low, down 1.75%. Bitcoin has given up its gains, now down 0.5% to $63,500.
The 30-year Treasury yield, meanwhile, has soared 10 basis points to about a 19-year high of 5.20%.
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