Closing Bell - Closing Bell Overtime: Huge Afternoon of Big Tech Earnings 4/29/26

Episode Date: April 29, 2026

Meta, Microsoft, Amazon and Alphabet all report quarterly earnings. The four companies represent more than 15% of the S&P 500. We bring you the numbers and instant analysis. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The bell is bringing an end to the trading day at the NYC, gold royalty corp, bringing the bell. And at the NASAC, it's Z-square doing the honors. Welcome to closing bell over time. We are live from Studio B at the NASAC market site. I'm Melissa Lee, along with Mike Santoli. We have got a huge hour coming up for the biggest companies in the world reporting results. Our team will bring you the numbers from Amazon, Alphabet, Microsoft, and Meta as soon as they cross. And we've got a great lineup of guests to break down the results.

Those numbers coming after a mostly down day for the markets. The Fed leaving rates unchanged. but with several dissenters, the Dow losing nearly 300 points, the S&P 500 finishing just below the flat line, and there was a small gain for the NASDAQ. Chipp names, once again, big winners. NXP and Seagate rising following their results last night. Another big game for Intel up more than 100% in April.

Oil, though, still a big overhang, up 7%, as President Trump says, the blockade will continue until Iran agrees to a nuclear deal, of course. There was also Fed Chair Jay Powell's last press conference. conference as Fed chair, saying zero chance of a rate cut for the rest of the year. So that gets price out of the market. It felt like there was every chance throughout the day to reduce exposure and to see sort of a pullback in the markets as opposed to a flat line. And you didn't really get it, right? I mean, oil, obviously making new highs, multi-week highs, yields also responding to the hawkishness of the Fed decision. Right now, it's being kind of walled off to certain parts of the

market, not the entire tape. You had things like Visa springing higher. Yes. today was the biggest upside contributor to the S&P 500. And of course, the semis, as we mentioned. But consumer discretionary as a group down 1% again today. Yeah, you mentioned Visa and, of course, Seagate, both big swings in the back of earnings. And I wonder if that sort of tells us the environment in which we are in where things got so corrected on one side as sort of the AI scare ripped through various sectors and is getting corrected now with an earning season. There's no doubt about it. And I think there's a lack of conviction except in the stocks where there are. already most extended, right? So nobody's quite sure if, in fact, we've got things priced correctly, no matter what the numbers that are coming through right here. And you have stocks that are up a ton in

one month, but still most of them well off their highs, with the exception of Alphabet and Amazon, which are pretty close to highs. Yep, yep. We are still, of course, awaiting results from a lot of the big cap earnings, big cap companies, I just say. We see there the action in the after-hour session. Meta, you can see a quick decline of 5 percent. Its numbers are crossing. We're going through those numbers right now as we speak, we'll bring them to you as they do cross and we do process them. Yeah, I mean, I do think that we're looking for signs of revenue acceleration and, in fact, we're probably not also looking for all of them to respond the same way. So we do see that variety already happening right now. Let's bring in a bespoke investment group

co-founder, Paul Hickey. Paul, this is huge. 17% of the S&P 500 is going to be reporting in the next, you know, three minutes, maybe less. Yeah. So what are we, what are we bracing ourselves for here? You know, I think we've seen big runs like you were saying and some of these stocks off the March lows. They're all up about 20% or more. But again, we've seen differentiation within them year to date. We've seen meta and Microsoft lag. We've seen Alphabet and Amazon rally. We're seeing differentiation in the overall market as well, software specifically. We've seen them all go down up until mid-February. And now they've started to differentiate. We've seen

a big bifurcation within that. sector. And I think that's a positive trend. The market is figuring out, which is winners and losers. We have our first numbers to get to Amazon. Results are out. Dear Jibosa has those for us. D. Hey, Mike, so the stock is pretty much flat. It dipped a little bit, but it is a beat on the top and the bottom line. Earnings spare share coming in at $2.78 cents versus a $1.64 the street was expecting. There is a $16.8 billion gain on its anthropic stake, though. Revenue coming in at 181.52 billion versus $177.3 billion

expected. Operating income guidance for the second quarter, this is what the street was really looking for. Amazon is guiding for between $20 to $24 billion. The street was expecting $22.65 billion. So that's sort of the midpoint

of what they gave out. The stock, though, has now lower by about 3%. So we're going to continue to dig into these numbers and find out what the culprit is for the stock moving lower, although expectations had moved down on the quarter. Back to you guys. Yeah, Dee, thank you. And, of course, we're waiting for the AWS number, which is going to be very key here in any sort of guide on CAPX. And I guess that's a key question is we are sifting through. We can get the headline numbers, but it's going to be the guidance, what we know about future quarters, but especially CAPX.

It seems to be a real important linchpin sort of in the continuation of the AI trade here. Yeah, I mean, I think for the, you know, semiconductor space, you're going to want to see increases. in CAPEX. These companies, we see this down reaction to the first two so far that are reporting. I don't want to make too big a deal of it. Both stocks have technical, meta has been volatile in reaction to earnings. Amazon has typically not reacted well in the short term earnings reports. So I wouldn't read too much into it. These stocks, as much as we make a big deal that they're bellwethers, when you look at their earnings reactions to then how the market performs during earnings season, it's a coin flip. So, you know, there's really not much to read,

far as the broader market's concerned. Alpha that chairs are higher by almost two and a half percent. The earnings are out. McKenzie Segalis got the numbers. Mac. Hey Mel, we're looking at a beat on revenue, $109.9 billion versus the $107.2 billion estimate.

EPS coming in at $5.11. At this point, we are not comparing that to the street estimate of $2.63. I've also got to read on Q1 cloud revenue. This is really a tell on whether that massive AI infrastructure pushed, especially on their in-house chips, the TPU is paying off. That's coming in at $20.03 billion versus the $18.05 billion estimate.

That is up 63% year over year, beating even the whisper number of 50% growth. Last thing I want to point out at this point, dividend, it's 5% increase to dividends, resulting in a $0.22.0.2 dividend for the quarter. Mel, I'm still digging into this for now. shares up around 3.5%. All right, Mack, thank you. McKenzie Segalo. So the cloud, again, we were saying the cloud.

is going to be key for Amazon. We don't have the AWS number yet, but we do have the Google Cloud number, which did beat estimates up 63% year on year. And it was responsible for the whole top line beat for the quarter for the company. So $2 billion dollars Google Cloud. Yeah, overall it looks like a very strong report. Not much to throw stones at, so to speak. And it was already pretty much at the highs. I mean, I think this kind of gets to that point that, you know, they're going to spend what they're going to spend. They were very aggressive in their guidance last quarter, all these companies. but now it's about are they seeing any traction on the demand side? And can they serve the demand given the capacity constraints? Exactly.

What, you know, Google is sort of a different animal in terms of the read on corporations and other companies spending in terms of the ad business. So that'll be sort of interesting to see. And also search is going to be important and what sort of traction they're making on Gemini. Let's get back to Deja-Gerbosa with more on Amazon, D. Yep, Melissa, I know you're looking for that AWS number. I have that in the first quarter, AWS Revenue. revenue growth was $37.6 billion, beating the street's expectations of about $36.6 billion.

So that's growth of 28%, which is higher than expected. However, the whisper number was up 30%. That's what sort of some of the street was expecting. So that may explain why the stock has been down a little, although now we're back up. So we're kind of moving back and forth, not a huge swing here. We'll continue to dig through this report. One other number I want to bring you is that Q2 revenue guidance. important also. This is also above estimates that $194 to $199 billion, $189, we'll call it, was expected.

Dee, thank you. Microsoft earnings also out. Sima Modi has that for Seema. Mike, third quarter numbers from Microsoft are out, and it's a beat on its top and bottom line. Earnings of $4.27 gap versus the estimate of $4.6. Revenue topping expectations, $82.9 billion versus the $81.3 billion. That's an 18% increase year over year. year. And the big number that investors have been waiting for, as your revenue growth, up 40%. The street was looking for 39%. So it's a beat. And I would also point out CAPX, which did slow quarter on quarter. It's looking to spend, spending $31.9 billion in the third quarter versus $37.5 in the second quarter. So sort of a slowdown in the amount. It's spending quarter over quarter. We're looking at

shares just up about fractionally. As we dig into the results, of course, we'll be looking for more color on Microsoft's relationship with OpenAI after ending that exclusive agreement, guys, that, of course, has been one key talking point going into earnings. Seema, thanks. Sima Modi. Again, Microsoft shares are higher. Just barely by about 4 tenths of a percent here. A lot of still unanswered questions, Mike, on Microsoft.

I mean, the number in terms of co-pilot seats last quarter, that was really sort of what turned the stock a lot. The Azure number seems to be decent in terms of a relative beat here. Yeah, I see right now the read is an absence of any negative surprises. We're still not quite sure how that restructured partnership with Open AI is going to have some puts and takes in terms of Microsoft's own business and its interest in there. But so far, you know, given how weak the stock is, like 23% off its high, still, you know, not too bad. Yep. Paul, what do you make of what we have? The bar for Microsoft is so low. I mean, they're, they're, for the stock that was supposed to be the winner of AI and it's been terrible laggards, underperforming. forming the next closest of these hypers by 100 percentage points since the launch a CHATGPT. So expectations

very low on the company. We'll have to see more what's going on. But if they can't rally when the expectations are this low, it's trouble for the stock. Speaking of more, we have more. Meta earnings are out now. Julia Borson's got those numbers. Julia.

Hey, Melissa, META's revenues beating estimates. The company reporting $56.31 billion revenue ahead of estimates of $55.45 billion. This is an accelerating revenue growth rate. The company also did here raise its full year CAP-X guidance to a new range of between $125 to $145 billion. That's up from its prior guidance of $115 to $135 billion for the year. So meaningful raise to an already large CAP-X as a result, of course, investment in AI. In terms of earnings, the company reporting $10.44 in Gap, earnings and $7.31 adjusted. This does, their earnings do include $8 billion in income tax benefit

recognized in the first quarter due to the corporate alternative, excuse me, due to a one-time act due to one-time charge. Let me back up here. Back in the third quarter, there was a $15.9 billion non-cash tax charge. This is in part reversing that. So we're reversing about half of that due to a new Treasury corporate alternative minimum tax treatment. Back over to you. Share is down about 6%. All right. Thanks, Julia. Julia Borson, let's get back to Mack. She's got more here on Alphabet. Mac? Mel, I want to start with a line from Alphabet CEO Sundar Pichai really pointing out the fact that 2026 is off to a terrific start. We're looking at backlog, nearly doubling quarter on quarter to over $460 billion. As a reminder, last quarter, it was at $155 billion. So that's a real endorsement of Google

cloud and future business there. He also said, Pachai saying, overall, the number of paid subscriptions has now reached $350 million with YouTube and Google One being the key drivers. He called out Gemini Enterprise, something that they've really been going after. That's usually Anthropics core market, that great momentum with 40% quarter-on-quarter growth in paid monthly active users. And then Waymos are passing 500,000 fully autonomous rides a week. In terms of search and other revenue, this is really a key read on the ad market.

which we've been looking at to see whether that high margin revenue business is being cannibalized by all those AI investments. It is a beat, $60.4 billion versus a $59 billion estimate. YouTube revenue coming in light at $9.88 billion versus the $9.99 billion estimate. Still, though, for nearly three years, it's been number one in streaming watchtime in the U.S. recently surpassed Netflix and Disney in terms of annual revenue. Last number I want to bring you is a miss on other bets revenue. That's where Waymo lives. $411 million versus the $483.2 million estimate.

That company just closed an outside round, valuing it at $126 billion. Mel, back to you. Mack, thanks. Mack, thanks. Mackenzie Segalos. Let's get back to Seema. She's got more on Microsoft. Seema. We're looking at the remaining performance obligations.

So bookings, Melissa, from Microsoft, for the quarter, $627 billion. That is up 99%. year-over-year-year, so that's a big number. But I would point out it's a slower pace than the prior quarter, which RPO came in up 110% year-over-year. So something to take into account. And once again, as we look at those CAP-X numbers, now the street was looking for $35 billion on CAP-X.

In the third quarter, the company here is saying 31.9 for the third quarter, which is really interesting, given the broader concerns around CAP-X, is it growing at a faster pace than Azure? We have comments here from CEO Sotia Nadella of Microsoft. He says we are focused on delivering cloud and AI infrastructure and solutions that empower every business to eval max their outcomes in the agented computing era. Reminder to our audience, Microsoft Guidance comes out during the earnings call, which begins at 5.30 p.m. Eastern.

He also points to one specific metric AI business surpassing an annual revenue run rate of 37 billion. That's up 123% year over year. Guys, I'll send it back to you. Seema, thank you. Let's bring in Brent Thiel. He is Jeffrey's equity analyst, and his coverage includes Microsoft, Google, and Meta. Brent, great to have you. Let's just start with Microsoft there. What did you see the market? It's just, you know, backing off slightly. Obviously, we're going to go a lot more detail on the call. Yeah, Microsoft was largely in line. Azure hitting in the high 30s, M365, mid-teens, CAPEX, kind of the in line and continued good operating margin improvement. So if anyone thinks you can't make money and AI, Amy Hood, the CFO of Microsoft telling you that you can make money on AI and improve margin.

So we continue to think that it's consistent, stable. They pulled the Wayne Gretzky and RPO up 99%, which is great to see. And I think it's pretty straightforward. I think the challenge is when you look at the Google backlog up on 90% sequentially, it looks like Google's taking market share across all these clouds. Amazon had a little lower than expected growth versus the streets 30. So Google really stood out. Microsoft stable.

I didn't see anything in the metrics. We'll get the guidance from Microsoft on the call for maybe hood. But so far, you know, again, I think the theme is software's under duress because everyone thinks that AI is going to eat the application business away. And so you have this tail of two halves with Microsoft. The infrastructure business is doing great and the worry around the apps business. I think it's kind of standing up to what we thought would be the fears going in, which is, you know, what's going to happen in the other part of the portfolio.

And so far, again, it's stable, it's steady, but there's no breakout play at Microsoft. It's just consistency. And I think that's what Amy Hood's been saying. She wants to give all, give investors. Brent, stay right there. We want to go back to Julia Borson, who's got more on meta. The shares are down more than 6% right now. Yeah, Melissa, it seems like the key factor weighing on shares is the company increasing its expected Cappex investments this year.

Looking at a couple of key other factors to flag here, the company's revenue guidance for the second quarter is in a range of $58 to $61 billion that's right in line with expectations, given the fact that the company reported higher than expected revenue in Q1, perhaps a disappointment that it's not going to be growing consistently into Q2. Another keynote here, reality labs, this is the Metaverse Division, reporting a loss of 4.03 billion in the quarter that is less than expected and smaller than the Q4 losses of $6 billion. And then one other note here is, it looks like we maybe hit a peak in terms of reality labs losses, daily active people actually decreased on a quarter over quarter basis and fell short of expectations. The company is saying that was driven by internet disruptions in Iran, as well as the research. restriction on access to WhatsApp in Russia. So the company ending with 3.56 billion daily active people for the family of apps shares down about 6.5%. Melissa? Julia, thanks, Julie Borson.

Brian, I want to go back to you on Meta. What are they spending for? I mean, I think that's what investors are worried about, that they're spending like the hyperscalers. And yet they don't have that hyperscaler business. What does Meta need to tell investors at this point? I mean, I think it's across the board. there's a skepticism that all this cap-x dollars is, is it going to pay off than an ROI? And it's a greater focus on meta.

To your point, they're not among the top three hyperscalers running corporate workloads. So what are they using it for? They're using it for their ad business. They're using it for the future of their platform. When you think about interactive content, when you think about what they're going to do with the glasses. And I think the first way that AI has paid off for meta, and you've seen this, and you're not going to, you know, you're seeing close to 30% revenue growth because that first wave of AI paid off with really good margin. I think the second wave of AI investment, everyone is freaked out, is this just going to be wasted on new things that don't have the same magnitude of return as the core platform?

And so I think that one still remains, you know, there's a, there's a cloud over the stock. And ultimately, what's going to happen in the next gen of this AI build. out is a big, is a big, bigger concern. And then the lawsuit, clearly, we're seeing the lawsuit as an issue. And, you know, the user number, I think, is also somewhat of a red flag tactically. But again, I point to, you know, Q1s are never, like, insanely good for meta. It is a seasonally soft quarter for advertisers. They didn't seem like they put it up, put up a seasonally soft quarter in advertising in Google beat by 2% in their ads business. So it wasn't, it wasn't that bad, but it was, I think, again, just the magnitude of the KAPX increase or when are we

going to see that return. Yeah. Hang on for a second. Brent, we're going to go back to Seema with more on Microsoft. Seema. It's a lengthy report here, Mike. And as we look through Microsoft's results, one specific metric we want to highlight to our audience. Co-Pilot has surpassed 20 million paid seats that compares to the 15 million last quarter. So it suggests that enterprise adoption is ramping for co-pilot. That has been a key concern for analysts. especially going into this report. Again, 20 million paid seats versus the 15 million it reported in the second quarter will want more comments from CEO Sutton Adela about what they are doing to increase the push here

to make co-pilot more competitive with the other players out there, guys. Seema, thank you. Now, Brent, I mean, obviously that's fast growth off a small base in one quarter, but maybe not that big a penetration into the whole Microsoft user base. Yeah, I mean, the copilot number, I think the bogey line, 18 to 20, it's good to see the numbers. I'd say, you know, they just signed Accenture for 700,000 users. And if Copilot sucks so bad, why would Accenture commit to over 700,000 users?

I think what we're seeing internally is the copilot system is getting better day by day. You can expose the clod and anthropic models inside the Microsoft co-pilots. You can pick the models now in terms of our own internal usage. And we're finding a big ROI in terms of how we're using. So I think copilot is getting better. I think most people that are negative on co-pilot aren't even users. They're just armchair quarterback saying it sucks. I think it's actually really improved as a user.

And I think we're seeing it from CIO work. The commitment to co-pilot is higher because you can deploy AI safely inside your enterprise. And so we're seeing a different story when we talk to CIOs versus Wall Street sentiment towards co-pilot. Again, it's not going to happen overnight. But I think, you know, they're getting some very large enterprises and to see a five million sequential improvement in in terms of number of total users is a good number. But yeah, it's a focus. And I think ultimately, in our opinion, it's getting, it's getting better. They have a lot of work to do.

We're not disputing that. But we think ultimately they're doing a decent job. And it's keeping the M365 business at, you know, mid-teen growth, which is still a pretty incredible number, given how big. that business is. I mean, just to put it in a context part, I mean, the 365 seats are what, 400, $450 million, and they have $20 million penetration. I understand that it's met, you know, the top end of the range in terms of expectations, but that seems kind of slow. Do you have an idea as to when they sign these big deals with Accenture? If there's any discounting involved, or I mean, what is being paid for this? I'm just wondering, in light of the Wall Street Journal

report from Open AI about missing internal targets and missing revenue growth targets and missing subscriber growth targets, what your understanding is of the value of those contracts? Yeah, I think enterprise software is the more you deploy, the more discounting you get. So ultimately, what I've said is when you think about a $30, $40 list price per month, the value ad for me as a user is way higher, and I would personally pay higher based on what it's done.

We can't deploy open AI natively or anthropic natively yet. And so I think the beauty is we can deploy co-pilot with those models embedded safely, securely, in a regulated industry. And that, I think, is a big thing for a lot of industries. And I've said this repeatedly, enterprise adoption of AI is going to be very slow. It's not going to happen overnight. And this is why software continues to be for sale and semis and hardware are to buy. And we're seeing an inflection because a lot of CIOs are very careful. And they're not going to deploy this overnight.

And I think copilot is a way that you can do it in a more safe and secure manner. But yeah, look, Anthropic and Open AI are going to, they're going to be for enemies. They're going to try to deploy natively and go after copilot. There's no question. There's competition. And I think it depends on your appetite for risk. You know, again, our view is deployed inside the fabric of a co-pilot, deploy your agents there. this is, in our opinion, a way that Microsoft is going to gain a lot of ground with these enterprises

because they can't do what the small businesses do. They can't just go natively deploy. They have to have frameworks. And so we think, again, I mean, to your point, Melissa, there is a lot of room to improve, and I think they can. And I think they're making the right steps. Again, I've just seen it in my own usage every day. And my team is all on it as well. We see the same thing happening. Brent, we're going to let you go. We know you have a busy evening tonight, Brent, Phil, of Jeffries. We appreciate your time. Paul, let's just get your take here.

We're seeing definite stock reactions in the after-hour session to these results, Alphabet, at least at this point in time. Granted, the conference calls have not started. We haven't gotten guidance, for instance, from Microsoft. But what do you make? Well, I think Brent summed it up with meta and Microsoft being down. He's describing their reports as not that bad and stable and steady. That's not going to get you a positive reaction in, your stock price, whereas Google has been, Alphabet's been doing everything on the cloud side

very well on the AI side. So, and again, if Microsoft co-pilot is the safest and best for enterprises, why are only 20 million seats versus what you said, an installed base of over 400 million? So there's definitely a lot of room for improvement there. Yeah, we've got more on Amazon's results. Let's get back to Dea Jrabosa. D. Hey, Mel, so it has been moving around in the after hours. It was down as much as 5%. But you can see clawing back some of those losses now just down about 1%. A little more color here. So the cloud growth was the thing that investors were really looking at, beat expectations,

but below that whisper number. And maybe when you put it beside the other two hypers, Microsoft and Google cloud growth, looks a little bit weaker. You saw 40% cloud growth for Microsoft, 63% for Google's cloud unit. Also keep in mind that Amazon had run up more than any other magnificent seven so far this year. So it had to have a really good report today. I also just want to mention Mel and Mike, there was lots in the report around its custom AI chips, which investors have really been looking at as a strength lately on a number

of announcements. What's new here is Amazon says that they've landed 2.1 million plus AI chips over the past 12 months, more than half of which were Traneum. So, you know, little feather in its cap for its AI chip ambitions, and that's on $20 billion of annual run rate for the chips business. That was mentioned a few weeks ago. Nothing in the report on CAPEX. That might come through on the earnings call and have the ability to move the stock further, but right now down about one and a half percent, guys. Dee, thank you very much. Maybe Amazon kind of is on the record with the massive CAPEX intentions from last quarter.

We'll see if that changes. Let's bring in Tom Forte from Maxim Group to break down those Amazon results. So Tom, I guess one of the takeaways is that AWS kind of, you know, hit the mark, but maybe Google, cloud, growing a little faster off a lower base. What are your main observations here? Yeah, so my main observations is I am encouraged by the accelerating revenue growth for AWS to the extent that the year-of-year growth rate was faster in the first quarter than it was in the fourth quarter. I do think, Mike, this is very much an instance where we still don't have the most important data point being updated to that full year of CAP-X guidance, which was $200 billion. That really set the shares back last quarter.

I do think, though, that investors should be more optimistic if Amazon were to raise CAP-X, given the company's history. They've done a great job of investing in the cycles when they're seeing positive returns and if they aren't scaling back that invest would spend. So I'd be a lot less concerned if $200 billion became, I don't know, $210 billion or something like that. And CEO Andy Jassy has said, even as recently as the shareholder letter, Tom, that they're not spending $200 billion on a hunch. So they're very confident in terms of the return on investment

for Amazon. And I get that the web services, the main part of the business that's driving the reaction to the stock. But Amazon's a big company. It's got a lot of other areas that are impacted by tariffs, by oil prices, and by the consumer being either weak or strong. So what's your take so far, based on what you've seen on that side of the business? Sure. So, Melissa, if I look at the Amazon business outside of AWS, I would say it's been very resilient. So they were less affected by tariffs than a lot of others in the retail space. I attribute that to their marketplace model.

You need to have the lowest price to win the buybox. And I do think that they are seeing resiliency in general when it comes to consumer spend. That's what I would refer from the second quarter outlook, despite the fact that gas prices are materially higher than they were last year. So, Tom, the gap number for Amazon, the earnings per share was, was much higher than anticipated because of the marking up of the anthropic investment here. Are we at a point right now where we have to have a pretty firm view of ultimately what Anthropic is worth to figure out if it's really material for Amazon long term? And then I guess it would also apply to Microsoft 27% interest in Open AI.

So as it pertains to Amazon, I think about the $50 billion commitment they made to invest in Open AI and ultimately a $33 billion commitment to invest in Anthropic. And I do think that there could be some element of incremental value in shares of Amazon if those companies are ultimately successful. At the same time, Mike, I'm a little concerned about the reliance on them as cloud computing customers. So when you think about that Anthropic announcement coinciding with the incremental $25 billion investment, Anthropic committed to $100 billion spend on AWS. So it is kind of a give and take for Amazon when it comes to Open A&A on Anthropic, not ready yet to say buy the shares on those minority investments yet.

All right. Tom, great to see you. Thanks to your analysis, Tom Forte. And Paul, we'll see you again in a few minutes time. Cool. You can relax now. Need a drink. Next we'll get you caught up on some other stocks making big moves in the after hours as we continue this very busy hour of earnings. Stay with us. Qualcomm earnings are out. Christina Parts and Neville's got the numbers. Christina. Well, Qualcomm beating on the bottom line. Share is, though, initially fell minus 7% on the software. guide, but bouncing back up almost 15% right now, possibly from the, quote, bottom commentary,

which I'll get to, the chipmaker earning $2.65% adjusted versus the street at 256. Q2 revenue in line. The chip business was a slight miss, but stronger licensing and cost discipline really helped push earnings per share above expectations. The guide, though, was initially the issue. Q3 revenue midpoint of 9.6 billion, an EPS midpoint of $2.2 dollars were well below street estimates. is memory driven. The company says it's under shipping relative to actual demand as Chinese

original equipment manufacturers draw down inventory around higher memory prices. CEO Cristiano Amman told me OEMs are prioritizing premium devices where consumers are just less price sensitive, a trend that could actually benefit Apple tomorrow, which only plays in that top tier. Qualcomm does expect Chinese handset revenue to bottom in Q3 and return to sequential growth the following quarter. So that could be part of the reversal. On the Open AI smartphone speculation from just two days ago, the CEO told me, quote,

you should expect that we're working not only with them, but most of the AI companies. The design engagement is very robust. He did decline to comment on any specific device, guys. But that is an over a 20% delta swing in just the shares and after hours, guys. Yeah, at least maybe in part benefiting from the fact the Qualcom's one of the rare semis that's, you know, 20-something percent below. tie going into this number. It's got a bit of a catch-up to do to the upside. Christina, thank you. Ford

earnings are out as well. Philippo has the numbers. Phil. Hey, Mike, take a look at shares of Ford, the company reporting a profit of 66 cents a share in the first quarter. We are not giving you the comparison because it's far lower, and it's likely that many of the analysts do not know why it came in at 66 cents a share, which we will explain in just a little bit. Revenue, 39.82 billion. That is better than the street was expecting a 38.82 billion. They did have negative free cash flow for the first quarter. Not a surprise that often happens in the first quarter, negative 1.9 billion compared to negative 1.5 billion in Q1 of last year. And here's why the earnings are so much more than what the analysts were expecting. Ford in the first quarter, its profit includes a $1.3 billion,

$1.3 billion in expected tariff relief. Now, they haven't actually gotten it from the government because that mechanism hasn't been worked out in terms of refunds for the AEPA tariffs, but that's what Ford is expecting. So they booked it here in the first quarter. They are raising their 2026 commodity cost guidance by $1 billion. So they expect an additional $1 billion in commodity cost headwinds, primarily because of aluminum. We know about the Novellus factory. That's impacted them. But they're seeing aluminum shortages worldwide. That's impacting the cost of aluminum. In terms of their guidance for 26. A profit guide now increases to $8.5 to $10.5 billion. Previously was $8 to $10 billion. And they're reaffirming their free cash flow for the full year coming in between

$5 and $6 billion. Guys, I'll send it back to you. All right, Phil. Phil LeBow. Chippoly earnings are out. Let's get to Brandon Gomez. He's got the numbers. Brandon. Hey, Melissa. Yeah, that's right. Share is popping about 6%. Now another in-line quarter for Chipotle EPS coming in at 24 cents a share on revenue of 3.09 billion. Revenue for the quarter up almost seven and a half percent year every year. The company noting that's largely driven by new restaurant openings. Same store sales better than expected as well, up half a percent compared to the 0.7 percent decline that was expected. While transactions were up, 0.6 percent. The average check decreased 0.1 percent. Now, for the fiscal year, guidance expecting same store sales to be flat. That is below expectations of nearly 1 percent

improvement. Worth noting, too, restaurant operating margins down from a year ago. An interesting line in the release on the rise in food, beverage, and packaging costs. The company saying the increase was driven by inflation, primarily in beef and freight and higher produce usage, though largely offset by lower dairy, avocado costs and menu price increases. Shares right now up about six and a half percent as the call gets underway. Melissa? All right, Brandon. Thanks, Brandon Gomez. Up next, much more reaction to the flurry of big tech earnings, including what these results tell us about continued hyperscaler spending. We'll be right back.

Let's recap the big earnings from the top of the hour. There were a lot of them. Matt of the big mover at this point, it is down by 5% here, just a little bit more than that. We're not comparing earnings to estimates, but one key number from this report was CAPEX, and that is really sending the shares lower here. The company raising its expectations for the year

to as much as $145 billion of spending. And this, of course, on top of last quarter's raise of CAPEX as well. Google also has some specialized. items complicating the earnings report, but cloud and search revenue both topping expectations. Amazon meantime, big beat on earnings, revenue two, boosted by AWS, upping its Q2 revenue guidance. And lastly, Microsoft beating on earnings and revenue, Azure growth up 40%, slightly head of expectations, also saying AI business revenue grew by more than 100% compared to last year. 20 million co-pilot seats.

We're still awaiting the guidance, which will come out on the conference call, which gets in her way in a little bit less than an hour's time. Well, now that we've heard results from Mag 7 earnings, what was the main takeaway from the reports we've gotten so far? Joining us now is Patrick Moorhead from more insights and strategy. So, Patrick, let's pull some thematic threads out here. I mean, none of these companies are showing a loss of nerve on the spending side. All of them at least had a modest revenue beat in their core business, I guess, which tends to say that they can afford it and not just afford it, but they're seeing maybe some traction there. What are you most looking for in terms of the granular? detail with these results?

Yeah, so Mike, to keep this AI party going, we had to hit three things, and I think you mentioned two. First of all, they had to reaffirm the CAP-X, and I think we're pretty confident that's going to happen. Not that, you know, somebody like Microsoft wouldn't dial it down, but just reasonable there wouldn't be an acceleration that didn't make sense. TPD on meta. Second was cloud growth accelerating or holding high, and we saw that. And the final thing is on the management on the call to see whether there is real demand or it's just, I call it AI hype demand. So I think that's the only missing piece we did get for the third part.

We saw a good read on Gemini. And I think this is probably going to be this is a surprise of the day, a lot of surprises about co-pilot, right? And Microsoft picked the perfect time to bring out some pretty strong numbers on that, even though it's a very small percent of their overall subscriber base. So there is enough here to keep the bullish AI narrative going, even though three of the four MAG 7 stocks right now, at least, are lower in the after-hour session. Yeah, it's interesting. On a daylight today with these folks coming out, I don't put too much

stock in after-hours. I think we have to digest it. I think we have to understand, for instance, on Meta's CAP-X increase. Where is that coming from? Microsoft investors, they want to know more about how OpenAI impacts the future. But I think we're going to wake up in the morning, bar something else happening in the macro environment, and this will keep this going. Certainly, there was nothing there to conclude that this was slowing down

or that the hyperscalers had lost their nerve on CAPEX. In fact, if I look at the wording that's used, let's say from a Matt Garman or even an Andy Jassy on the confidence level, and I'm seeing this across all of these tickers, it is very highly confident with maybe the exception of meta, but we're going to have to wait for the call. Yeah, and I mean, I guess, you know, you mentioned they want to see real AI demand as opposed to AI hype. It's pretty tough because there's a lot of demand from other companies that are building AI. So the demand for building AI from other companies building AI or experimenting with it, obviously. And the fascinating thing is how capacity can strain this food chain is right now. So it's almost like they can say whatever KAPEX spending number they want, but what are you getting for it when there's scarcity in some of the hardware and, in fact, pricing going up along that line? So, Mike, I don't think any of these companies would set up putting out a number if they didn't have a reasonable degree of confidence they could deliver it.

I was actually a little surprised that they did. stick to their KAPX numbers because there is a lot of complexity, particularly on the power generation side, building new data centers. I was on the show, I think a month ago, where I said, hey, I think we're good through the middle of 2027. It gets a little bit murky going into 28. So I think it's we're all guns of blazing unless something odd comes out. out on one of these calls. Patrick, great to speak with you. Thanks.

Patrick Moorhead. Up next, fast money's Tim Seymour and how he is trading the Mag 7 stocks that we just heard from. Closing Bell overtime. Be right back. Let's get another check on these mega-cap moves in the after-hours trading session. Alphabet set a record high today

and extending those gains in overtime. Joining us now here on set, Tim Seymour, Seymour Asid Management, CIO and a fast money trader, of course. The spokes Paul Hickey joins us as well. since we checked in with Mac last, we've gotten a couple more headlines from the conference call, which is ongoing strongest quarter for consumer AI plans driven by the adoption of the Gemini app,

also strong momentum when it comes to enterprise AI. And compare this to Microsoft, which did show some momentum, but of a very small base. What do you make of the quarters? Well, I think the comps for Google are easy, but easier. But I will say that I think we've just talked about this on the commercial break. So let's bring you into the conversation, that Google's up 150% from April of 25 when the world thought that they had failed the AI test.

So Gemini continues to, you know, be rolled out. And the bottom line for Google is their cloud is growing. And it's growing better than off of a lower base, but at a higher rate than its peers. And what is ultimately a commoditized business, I think that's part of, that delta is part of the outperformance here. And search continues to come in stronger than expected. Since April last year, it's come in stronger than expected every quarter. So I think that all those fears that their business was going to be fall victim to the AI have been unfounded. And they're actually monetizing AI in both the consumer and the enterprise side, which most other of these hyperscalers can't say.

So we can take all of that and say we were foolish to ever doubt Alphabet as the conclusion. Or we could say that the market pendulum swings widely around these companies. And maybe we're doing this with Microsoft right now and sort of counting them out when they even have this diverse core business that continues to grow. Yeah, I mean, as Melissa said, it's a marathon, not a sprint. But I think with respect to Google, I mean, when Sunderer Pachai became CEO, they were an AI first company back in 2018. So they've been at this a long time. It's not like they suddenly realized they were behind. They've been working at this. And, you know, they realize that it's not just get in the flash in the pan early. It's a long game. And they're really playing it well. I like Microsoft here. I don't think anybody expected a whole out of co-pilot. We got a pretty solid number out of Azure. The RPO's were in decline. That's kind of disappointing. But it gets back to the long game, the marathon we're all in. And at this point, you're buying Microsoft at a multiple that, to me, is pretty attractive for a company that

is still in the buildout that they have already in place in enterprise. And obviously, on the 365, is an enviable position. Mark, it's not giving them credit for that. So are we punishing META too much with them ramping up CAPEX? The first time they had a huge CAPEX spend, they were able to monetize. They were one of the first out of the gates of the MAG 7 to actually say, we are monetizing. And it got the stock went up on the back of that notion that it was the one MAG7 that is saying that it is monetizing AI spend in its ad business.

And here we are at the second wave of spending, and they're completely getting penalized. Well, ad spend, first of all, I know there's cyclicality to this. But Google and Meta are not given credit. for. There's probably an 8 to 9% ad span growth. This is very good for them. Google seems to be taking a little bit more of that. But I do think meta is underappreciated here. I do think the CAPEX, they've been very straightforward. People have wanted to believe this year of efficiency thing would fall into CAPEX. Why would they stop now, even though I understand there could be some concern? And they boosted CAPEX, but they didn't boost revenue guidance along with that.

So that's, I mean, that's a short term. Let's see what the call looks like and going forward and give people a chance to sleep on it, but knee-jerk reaction sort of makes sense. This is all cute plus and minus 6%. The other two that reported have smaller gains. To me, the thing is, what are Sammy's going to do with all this, if anything? Because that's been the channel of high conviction of buying that's been keeping this market together, right? I mean, if Kappex is going up, right? Well, a little bit anyway, yeah.

Yeah. Again, we see the group continue to have this rotation within. You know, Qualcomm is getting the rotation to today, and it's for, different part of, you know, the memory chips, but also where they sit within smartphones and the pricing power. I don't see why the demand side of this story, there's no fluctuation here in demand. Therefore, at least in the 26, 27 multiples, you're fine in semis. I mean, we're rotating back in time because we're getting the giants of the 80s and the 90s involved here with Intel and QaLCOM and Western Digital and all the floppy drive companies. Well, it's a move from

Agenic. You need more CPS. I get it. But you're going down. the value change. It's unusual technology cycle when you consider that that's the way it's. And when Intel comes out and beats numbers because they found stuff under the bed that they thought they were going to throw out and then they were able to sell it. That's the thing. There's very strong demand. Less than it is. Never take out the trash. All right. Tim Seymour, Paul Hickey. Tim, of course, we'll see in a few minutes. Paul, good to talk to you. Thanks for coming by and spending the hour with us. All right, Apple earnings take center stage tomorrow after the bell, but there are a lot of other big names. You'll need to keep your eye on as well as a key rating on inflation.

will run through it all when closing bell overtime, live from the NASDAQ market site, returns. It's been a very big hour of earnings. Meta down about 6.5% right now hit by raised CapEx forecast. In an update, we now have a comparable EPS number, 731 a share compared to the estimate of 679. Alphabet is a gainer, the big one, the big winner at least in the after our session, steadily climbing throughout the hour, smaller moves in Amazon as well as Microsoft. Another stock on the move, Carvana beating on earnings and revenue, saying it's so. sold 167,87, excuse me, thousand vehicles in the quarter.

That is up 40% from last year. All right. All of it netted together. It'll probably hold the indexes harmless at this point, given the gain in alphabet, although, you know, yields had a big move today and oil. So we can't forget about all that either. That does it for overtime today. Fast money starts right after this break.