Closing Bell Microsoft, Meta Fall After Earnings While Alphabet Jumps; David Zervos on Fed, Powell 10/29/25
Oct 29, 2025
Steve Kovach, a business and tech reporter, delivers insights on major earnings from Microsoft and Meta, noting why their stocks fell despite reporting strong revenue. David Zervos, Chief Market Strategist at Jefferies, provides a macro perspective, discussing Fed policies and their implications for investors. He analyzes inflation risks and the evolving Federal Reserve stance, suggesting a more cooperative environment ahead. The conversation wraps up with expectations for earnings from other tech giants and the future landscape of investment.
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Mega-Caps Drive Market Direction
- Microsoft, Meta and Alphabet results carry outsized market influence because they comprise a large share of the S&P 500 and huge combined market cap.
- Strong earnings from these mega-caps can lift markets even if underlying sectors remain uneven.
Cloud Growth Justifies Heavy CapEx
- Alphabet beat revenue expectations and showed accelerating cloud growth, signaling durable demand for cloud services.
- Cloud acceleration gives investors tolerance for higher CapEx when it supports measurable revenue expansion.
Good Results Can Still Disappoint
- Microsoft beat revenue and EPS, with Azure growing ~40%, yet shares fell after hours.
- Investors punished the quarter for a smaller-than-expected beat or mixed cloud metrics despite overall strength.