ToNi
05-07

Mag 7 Earnings Shine: Why It’s Time to Double Down in May

The Magnificent 7 tech giants delivered a mixed yet promising earnings season, signaling resilience and growth potential as we head into May 2025. Excluding NVIDIA, the group showed strength, with Alphabet climbing 4% after beating revenue and EPS estimates. Microsoft surged 10% on strong earnings and an upbeat forecast, driven by its AI and cloud momentum. Meta’s robust ad sales eased tariff concerns, delivering both earnings and guidance beats.

Even Apple and Amazon, despite stock price dips due to softer guidance, exceeded earnings expectations, providing stability in a volatile season. These results highlight the underlying strength of Big Tech—companies that continue to innovate and dominate their sectors. Microsoft’s cloud growth, Alphabet’s ad revenue, and Meta’s recovery from tariff fears underscore their adaptability and long-term value.

As May begins, seasonal headwinds and soft guidance may spook some investors, but the Mag 7’s fundamentals remain rock-solid. Their ability to beat earnings while navigating challenges like tariffs and economic uncertainty makes them attractive for long-term growth. Investors should see this as a chance to double down, especially on outperformers like Microsoft and Alphabet, which are poised for further gains. The tech sector’s innovation—spanning AI, cloud, and digital advertising—positions the Mag 7 as a cornerstone for any growth-focused portfolio.

Rather than selling in May, now is the time to hold and add to your Big Tech positions. Their proven resilience and market leadership suggest more upside ahead. Are you ready to double down on the Mag 7? 

🎉Microsoft Enters $4 Trln Club! Who’s Next to Join the Elite Club?
Microsoft has become the second company in the world to reach a $4 trillion market capitalization after reporting quarterly earnings beats. Meta rocketed 11% as topped projections for second-quarter sales and gave a stronger-than-expected forecast for the current period, a sign that the social media company’s advertising business is still growing quickly enough to support aggressive spending on artificial intelligence. Two giants set new all time highs. AI battleground heats up: will you hold the two stocks? Is their AI spending good news for Nvidia? Can Apple become the third one?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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