Microsoft and Meta Surge; Eli Lilly Slides; Harley Davidson and Tariffs
May 1, 2025
Microsoft's shares soared following a strong earnings report, driven by a significant boost in its Azure cloud revenue. Meanwhile, Meta also outperformed expectations, reporting impressive first-quarter sales while investing heavily in AI. In contrast, Eli Lilly faced challenges with a lowered earnings forecast. The discussion also highlights how tariffs are impacting major companies like Harley-Davidson and Qualcomm, revealing the current economic landscape's complexity and its effect on market performance.
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insights INSIGHT
Tech Giants Beat Expectations
Microsoft and Meta reported earnings beating Wall Street estimates, especially in cloud and ad sales growth.
Their strong results show resilience despite tariffs and economic turbulence impacting other sectors.
insights INSIGHT
Eli Lilly Faces Competitive Pressure
Eli Lilly's stock fell after lowering its earnings forecast amid increased competition from Novo Nordisk's drug gaining CVS coverage.
This competition poses challenges to Eli Lilly's weight-loss drug sales outlook.
insights INSIGHT
Tariffs Impact Major Companies' Outlook
Several companies like Qualcomm, Harley-Davidson, and General Motors warn about tariff impacts affecting supply chains and earnings.
General Motors anticipates a $5 billion hit but shares rose, possibly due to expectations already priced in.
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On this episode of Stock Movers: - Microsoft (MSFT) shares are higher this morning after an earnings blowout. The company reported stronger-than-expected quarterly sales and profit growth as the Azure cloud unit posted a 33% revenue gain in the quarter, beating the Wall Street estimate of 29%. It suggests customer demand for cloud services has held steady despite a wave of tariffs and economic turbulence. The world’s largest software maker is considered a leader in commercializing AI products, thanks to its close partnership with ChatGPT maker OpenAI. In addition to providing computing infrastructure, Microsoft has launched AI assistants in widely used productivity applications such as Office and Excel. - Meta (META) shares, along with Microsoft, are helping lead the Mag 7 higher after the company reported $42.3 billion in first-quarter sales, beating analysts' estimates of $41.4 billion. Meta expects to spend $64 billion to $72 billion this year, up from its prior outlook, due to tariffs imposed by the Trump administration and investments in artificial intelligence. Meta's advertising business, which makes up 98% of the company's revenue, is growing, and the company is investing heavily in AI development, including a new standalone AI app, to compete with rivals. - Eli Lilly (LLY) dropped in the premarket after the drugmaker cut its adjusted earnings per share forecast for the full year. The company also reported first-quarter sales of its blockbuster weight-loss drug, Zepbound, that was in line with expectations. It also follows CVS' drug-benefits unit negotiated a deal to make Novo Nordisk A/S's Wegovy more widely available to its members, replacing Zepbound. - Harley Davidson (HOG) shares are lower after pulling its 2025 financial outlook, citing the “tariff situation” and macroeconomic conditions. It also reported revenue for the first quarter that missed the average analyst estimate.
Stock Movers