Despite ongoing trade war uncertainties, tech giants Microsoft and Meta surpassed Wall Street’s expectations in the first quarter of the year, offering a sense of relief to investors amid months of stock market turbulence.
Meta, the parent company of Facebook and Instagram, posted a quarterly net profit of $16.64 billion, or $6.43 per share, for the January–March period, marking a 35% year-on-year increase. The company’s revenue grew by 16%, reaching $42.31 billion, surpassing analysts’ predictions of around $41.4 billion.
Microsoft also saw a robust performance, reporting a net profit of $25.8 billion, or $3.46 per share, an 18% rise compared to the previous year. The company’s revenue totaled $70.1 billion, up 13% year-over-year, and exceeding analyst expectations.
Both companies pointed to artificial intelligence (AI) as a key growth driver. Meta has integrated AI tools into its advertising business, while Microsoft saw strong results from its cloud computing services. Alphabet, Google’s parent company, also reported better-than-expected quarterly earnings of $90.23 billion last week, further showcasing the positive impact of AI investments.
These results come as a welcome boost for the U.S. tech sector, which has faced significant volatility since President Trump’s return to office in January. Following his inauguration, the market value of the top seven U.S. tech firms – Microsoft, Meta, Nvidia, Amazon, Tesla, Apple, and Alphabet – dropped by 24%, or $4.2 trillion, during the first 100 days, due to concerns over Trump’s trade policies.
Trump’s tariffs, including a 145% duty on China, have disrupted businesses and caused uncertainty among investors. This uncertainty has been heightened by the recent announcement of a 90-day suspension of “reciprocal” duties targeting almost all countries.
The U.S. economy also contracted by 0.3% in the first quarter of 2025, raising fears of a potential recession. In an earnings call, Meta CEO Mark Zuckerberg reassured investors that the company is “well-positioned to navigate the macroeconomic challenges” of recent months. Additionally, Meta unveiled its standalone AI app, MetaAI, and plans to invest between $64 billion and $72 billion in capital expenditure in 2025, primarily for completing data center constructions.
