Tech Titans Reach Record Highs Ahead of Earnings: Alphabet, Microsoft, and Meta Surge

Investors Optimistic as Mega-Cap Tech Companies Approach Quarterly Earnings Reports Next Week

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In a prelude to their upcoming quarterly earnings reports, tech behemoths Alphabet, Microsoft, and Meta have reached all-time highs in the stock market, generating enthusiasm among investors. The surge is attributed to expectations of robust earnings, driven by the growth of artificial intelligence (AI), cost-cutting measures, broader economic expansion, easing inflation, and the potential for lower interest rates.

Alphabet’s shares ascended by 2.1%, closing at a record $151.87, while Microsoft rose 0.6% to $404.87, securing a market cap exceeding $3 trillion. Meta also experienced a 0.6% gain, closing at $393.18. Meanwhile, Apple, though not at its peak since December, remains closely watched.

Analysts at Mizuho Securities have upheld a buy rating for Alphabet, emphasizing the company’s dominant position in the search and advertising sector, along with a consistent track record of innovation and AI investments.

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Alphabet is anticipated to announce a 12% revenue growth for the quarter, as indicated by analysts surveyed by LSEG. If achieved, this would mark the fastest growth rate since mid-2022. Having surged by 58% in the previous year, Alphabet’s shares have risen by 8.7% in the early months of 2024.

Meta, the second-best performer in the S&P 500 in the previous year, almost doubling its stock value, is up by 11% in January. Microsoft, mirroring Alphabet’s gains in the past year, has seen an almost 8% increase in its stock value so far this year.

Microsoft, a leader in the cloud-computing market, is closing in on Amazon Web Services. Analysts at Piper Sandler, while acknowledging Microsoft’s AI advancements, highlighted the significance of its cloud computing division, urging investors not to underestimate its potential. Microsoft has recently surpassed Apple as the world’s most valuable publicly traded company.

As anticipation builds for the forthcoming earnings reports, these tech giants continue to demonstrate their resilience and growth potential, capturing the attention of investors and solidifying their positions as industry leaders.