"Magnificent Seven" Companies Microsoft, Amazon, Alphabet, and Meta Just Reported Earnings. Here Are the Winners and Losers

Four Magnificent Seven tech giants — Microsoft, Amazon, Alphabet and Meta — reported Q1 results, producing mixed market reactions. Microsoft beat EPS and revenue but its stock fell ~5%; Amazon and Meta beat estimates but traded lower (Meta down ~9%); Alphabet beat revenue and surged ~9% after very strong Google Cloud results. All four raised full‑year capex guidance, signaling continued AI infrastructure spending that’s pressuring free cash flow. Google Cloud’s 63% revenue growth and a nearly $460 billion backlog stood out, while Microsoft highlighted ~40% Azure growth and Copilot seat gains. The market favored blowout cloud performance and punished companies whose capex wasn’t justified by exceptional upside, sending the Dow sharply higher even as the tech‑heavy Nasdaq moved modestly. The piece calls Microsoft potentially oversold despite solid cloud metrics.