Alphabet are among the first tech titans to report earnings, delivering another solid result for the first quarter of 2025, with total revenue reaching $90.23 billion, up 12% from the previous year, driven by strong momentum across its business segments, especially Google Cloud, operating at a margin nearly doubled compared to the same quarter last year. Snap reported Q1 revenue of $1.36 billion, representing a 14% year-over-year increase, with its user base expanding to 460 million daily active users, though it posted a lower net loss of $140 million, paying 5 times the amount in interest compared to last year along with increased cost of revenue. UPS also announced positive Q1 results, with revenue growing 1.4%, driven by increases in air cargo and a 4.5% improvement in revenue per piece, with consolidated operating profit reaching $1.7 billion, up 3.3% compared to the first quarter of 2024.
Some of the most awaited counters that are in line to release earnings include Microsoft, with investors closely monitoring its cloud computing division Azure and its AI initiatives, including but not limited to its investments in OpenAI. Apple is also scheduled to report its Q1 earnings on May 1st after market close, with analysts anticipating revenue growth with headwinds from dwindling iPhone sales in China. Meta Platforms is projected to post Q1 earnings of $5.23 per share, up 11% year over year, with sales estimated to rise 13% to $41.3 billion, though investors remain concerned about the impact of potential tariffs and ongoing antitrust issues. Amazon will share its Q1 results on May 1st, with expectations of $155 billion in revenue, representing an 8% year-over-year increase, with particular focus on AWS performance and profit margins.
The first quarter of 2025 has witnessed significant market volatility, with technology stocks being hit particularly hard as growth stocks fell by 10.0% and the Nasdaq 100 dropped by 8.1%. Although not all is well, the technology sector is faring it quite easily, expecting to lead earnings growth at 12.7%, mainly by the "Magnificent Seven" companies. Investors remain cautious with unresolved geopolitical tensions, uncertain tariff implementations, and interest rate pressure, which have contributed to unprecedented market volatility. As companies continue to report their Q1 earnings, market participants will be closely analysing guidance and commentary on AI investments, cloud computing growth, and advertising revenue trends to gauge the technology sector's trajectory for the remainder of 2025.
Source: ainvest, Schwab, Reuters
Photos: Unsplash
