Four Magnificent 7 stocks just reported earnings and The Daily Breakdown has key takeaways for each one of them. Let’s dive in.
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What’s Happening?
Four Magnificent 7 companies reported earnings yesterday and reactions are mixed, with the QQQ ETF edging higher this morning by about 0.5% and hovering near its recent record.
Alphabet (+7% to new highs)
Alphabet’s Mag 7 leadership continues with more record highs this morning. It beat Q1 expectations, helped by strong cloud growth, advertising resilience, and accelerating Gemini usage. Cloud revenue topped forecasts, backlog nearly doubled, and capex rose again to support AI demand. Its move to sell TPU chips to select third parties adds another potential AI growth driver.
Amazon (+3% to new highs)
Amazon’s Q1 gave investors needed reassurance on its massive AI spending. Revenue, earnings, margins, AWS growth, and Q2 guidance all beat expectations, while Trainium’s $225 billion in commitments strengthened the case for its AI infrastructure buildout. Capex remains heavy, but demand visibility makes the spend easier to justify.
Microsoft (-1%)
Microsoft beat on earnings and revenue, with Azure guidance also ahead of consensus and AI revenue up sharply. But investors remain focused on rising AI infrastructure costs, as 2026 capex is expected to hit $190 billion. Strong cloud and Copilot momentum help, but margins and spending remain key concerns.
Meta (-8%)
Meta’s Q1 showed strong revenue, ad growth, operating income, and underlying EPS. But shares fell after Meta raised its 2026 capex outlook again, reviving concerns about runaway spending. AI is improving ads, but investors want clearer proof that investment is becoming measurable returns.
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The Setup — Apple
Once Apple reports tonight, Nvidia will be the only Mag 7 stock left to report. Apple has rebounded 10% from its Q1 low but remains more than 6% below its December record.
Technical investors have seen prior resistance in the $245 to $250 area turn into current support — or what we called a “role reversal” during our Technical Analysis Boot Camp — while resistance then formed around $280. Going into earnings, bulls will want to see support continue to hold should AAPL shares dip, and would like to see a breakout over resistance in the event of a rally.
Options
As of April 30th, the options with the highest open interest for AAPL stock — meaning the contracts with the largest open positions in the options market — were the July $295 calls.
Investors who are bullish could consider calls or call spreads as one way to speculate on further upside, while bearish investors could consider puts or put spreads to speculate on a further move to the downside. For options traders, it may be advantageous to have adequate time until the option’s expiration.
To learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
QCOM
Shares of Qualcomm are joining the chip-stock rally, surging more than 10% this morning after earnings. The stock initially fell despite a Q2 beat, as Q3 guidance came in light. But sentiment flipped after the CEO said Qualcomm will begin shipping data center chips to “a large hyperscaler” this year. Dig into QCOM’s fundamentals.
DOGE
Dogecoin jumped more than 12% at one point yesterday, but ended the day higher by just 2.4%. Nevertheless, it’s back on the move today, up 4% this morning, as bulls try to garner more momentum. DOGE is trying for its fourth straight weekly gain. Check out the DOGE charts.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.