With NVIDIA (NASDAQ:NVDA) releasing last week, we now have a clearer picture of the performance of the so-called Magnificent Seven and other major U.S. stocks. The biggest disappointment came from , which missed earnings expectations and raised concerns about increased AI spending, causing its stock to fall more than 11% immediately after the announcement.
Only earlier this week did the stock show signs of slowing the decline and attempting a partial recovery. Alphabet has been a clear winner in recent weeks, rising strongly. Amazon also recorded strong results, while continuing its upward trend, benefiting from the easing of trade tensions between Washington and Beijing.
Alphabet Reports Strong Profits on Google Cloud Growth
The stock chart reflects the strong market response to its . Earnings per share beat estimates by more than 25% and revenue beat forecasts by 2.6%, fueling investor enthusiasm.
Google Cloud also posted impressive numbers, with operating income up 85% and a margin of 23.7%. These results are encouraging, especially given the competitive AI landscape and the company’s disciplined approach to spending.
Source: Investing.com
The company continued to see strong market reactions following its results, with shares up more than 5%. However, with such rapid growth, a natural pullback is possible, with the next key target being around the $300 per share level.
Could a withdrawal provide an opportunity to purchase on Amazon?
Among the companies analyzed, it showed the strongest market reaction, rising more than 6% and reaching new all-time highs. A brief supply squeeze caused by intermittent global risk aversion spurred the rally ahead of the quarterly report.
Despite this, Amazon’s fundamentals remain strong and growing demand for AI solutions, combined with the lowest price-to-book ratio and second-lowest price-to-earnings ratio among the seven, supports its continued uptrend. The market remains optimistic heading into the next earnings release, with most analysts raising their forecasts.
Source: InvestPro
Apple expects iPhone sales to rise…
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