Amazon (AMZN), Google (GOOG, GOOGL), Meta (META), Microsoft (MSFT), and Qualcomm (QCOM) reported their earnings after the bell on Wednesday with each company posting better-than-expected results.
Each company pointed to AI and the cloud as a boon for their bottom lines, with Amazon in particular noting that AWS saw its fastest growth in 15 quarters.
And if that’s not enough, Apple (AAPL) will announce its earnings on Thursday.
The announcements come at a difficult time for the AI trade, after the Wall Street Journal reported on Tuesday that OpenAI (OPAI.PVT) recently missed sales and user targets, renewing concerns about overspending in the sector, sending stock of Oracle (ORCL) and CoreWeave (CRWV) lower on the day.
In addition to earnings, the tech industry has its eyes on a California courtroom where Elon Musk’s years long legal fight against Sam Altman and OpenAI is finally going to trial.
Musk is accusing Altman and company of duping him into donating money to OpenAI while he was still with the AI startup by saying it would remain a non-profit organization, only to turn it into a for-profit later.
But Altman and OpenAI have rebutted, saying that Musk was onboard with the transiton to a for-profit, and is hurt that he didn’t stick with the company now that it’s such a massive presence in the AI space.
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2 key risks Meta warned investors about in its Q1 earnings report
Meta stock fell 6% as the earnings call was underway. As Yahoo Finance’s Myles Udland points out, two key risks Meta touched on in its quarterly report could be putting pressure on shares.
Myles writes:
The first is costs — namely, costs related to its artificial intelligence investments. Meta raised the range for its expected capital expenditures this year to $125 billion-$145 billion, up $10 billion from January on both the high and low ends, citing “expectations for higher component pricing this year and, to a lesser extent, additional data center costs to support future year capacity.”
Meta’s increased investment is, in part, about the opportunity presented by AI. But it is also a result of higher prices across a number of inputs — chips, raw materials, land, permitting — that go into this build-out. Inflation isn’t only a household phenomenon.
The second challenge is regulatory. In its earnings statement, the company wrote, “We continue to monitor active legal and regulatory matters, including headwinds in the EU and the U.S. that could significantly impact our business and financial results.
Google CEO says US viewers are watching 200 million hours of YouTube every day
YouTube continues to play an important part in Alphabet’s ecosystem.
“In the living room, US viewers are watching over 200 million hours of YouTube content daily,” Google CEO Sundar Pichai said on the earnings call. He touted that YouTube Premium saw its largest quarterly increase in non-trial subscribers.
YouTube advertising revenue rose 11% to $9.88 billion in the first quarter, underscoring the platform’s strong momentum. Google said its overall number of paid subscriptions has now reached 350 million, with YouTube and Google One being the key drivers.
But YouTube and other social media platforms are facing growing legal risks as usage balloons. In March, Google (GOOG, GOOGL) lost in a landmark social media addiction lawsuit that found that YouTube’s design caused harm in young users.
Alphabet, Microsoft, Meta, Amazon report earnings. Only Google stock is trading higher.
Four of the “Magnificent Seven” megacap tech stocks just reported earnings — and all of them beat profit expectations. Yet, only Alphabet stock seemed to gain a favorable reaction from investors after hours. Here’s a recap:
Alphabet (GOOG, GOOGL): Google reported strength in its cloud business and Gemini artificial intelligence models, which lifted first quarter earnings $5.11 per share, a beat compared to estimates of $2.62. Google stock jumped 6% after hours.
Microsoft (MSFT): Microsoft beat analysts’ expectations on the top and bottom lines, but the stock fell 2% in extended trading. Ahead of earnings, Microsoft said it had reworked its relationship with OpenAI (OPAI.PVT).
Meta (META): The social media giant once again raised its plans for capex spending. Meta plans to spend between $125 billion-$145 billion on AI ventures, a staggering amount that helps explain why the stock fell 6% despite a Q1 earnings beat.
Amazon (AMZN): Amazon’s cloud unit reported its fastest growth in 15 quarters and its Q1 profits beat estimates. The stock fell around 4%, however, as AI spending weighed on free cash flow.
Meta Q1 earnings to spotlight massive AI spending
Meta Platforms (META) is set to report first quarter earnings after the market close on Wednesday, with investor focus likely to center on the company’s massive AI investments and recent staff cuts aimed at reshaping the organization for the AI age.
The company is expected to report adjusted earnings per share (EPS) of $8.15 on revenue of $55.5 billion, according to Bloomberg estimates. In January, the company guided to first quarter revenue of $53.5 billion-$56.5 billion.
Meta CEO Mark Zuckerberg. REUTERS/Carlos Barría · Reuters / Reuters
Meta stock is up about 2% this year, against a 6% gain for the Nasdaq Composite (^IXIC).
In the first quarter last year, Meta reported EPS of $6.43 on revenue of $42.3 billion. In that report, the company said it expected total expenses in 2025 to reach $113 billion to $118 billion, with capital expenditures forecast at $64 billion to $72 billion.
By the end of the year, Meta’s realized expenses hit $117.7 billion, and its capital expenditures tallied $72.2 billion. In January, the company said it expected 2026 expenses to come in between $162 billion and $169 billion and its capital expenditures to reach $115 billion and $135 billion.
Google’s Q1 results on deck with Wall Street eyeing cloud, AI growth
Google parent Alphabet (GOOG, GOOGL) will report its first quarter results on Wednesday, with the company set to offer key updates on its Gemini model, Google Cloud revenue, and its investment plans as investors see the company as one of the big AI winners this year.
Alphabet stock has climbed roughly 30% over the past six months, beating out Amazon (AMZN), up 13%, and Microsoft (MSFT), which is off about 20%.
Alphabet and Google CEO Sundar Pichai speaks to media at Google’s campus in Warsaw, Poland, February 13, 2025. REUTERS/Aleksandra Szmigiel · REUTERS / Reuters
Much of that is thanks to the success of Google’s cloud platform and Gemini artificial intelligence models. That’s helped the company’s cloud revenue accelerate over the last few quarters, topping $17.66 billion in Q4, and it doesn’t look like it’s slowing down anytime soon.
Google Cloud revenue is projected to be $18.4 billion. That would amount to a 50% year-over-year increase.
Microsoft earnings to focus on AI growth, Copilot users
Microsoft (MSFT) will report its third quarter results after the bell on Wednesday as Wall Street looks for signs that the company can keep up with AI demand and steady its position in the artificial intelligence race.
Microsoft’s stock has plunged in recent months on concerns about its Azure and AI growth. In its last quarter, Microsoft reported 38% growth in its Azure business but said it would have reached 40% if not for capacity constraints.
This concern, as well as questions about Copilot adoption, risks to Microsoft’s enterprise software business, and its relationship with OpenAI, has hung over the business in recent months, with its stock down over 20% in the last six months and serving as a laggard among its “Magnificent Seven” peers.
For the quarter, Microsoft is expected to report earnings per share of $4.04 on revenue of $81.46 billion, according to Bloomberg analyst consensus estimates, up from the same period last year when it saw EPS of $3.46 and revenue of $70.06 billion.
The company’s Productivity and Business Processes segment is expected to generate $34.48 billion, while the Intelligent Cloud business is expected to see $34.31 billion.
Azure revenue is expected to increase 38.24%.
Amazon to report Q1 earnings Wednesday
Amazon (AMZN) will report its first quarter earnings alongside rivals Google (GOOG, GOOGL), Meta (META), and Microsoft (MSFT) on Wednesday, with investors looking for more signs that the company’s massive artificial intelligence spending is paying off.
Amazon will report its Q1 earnings after the bell today. REUTERS/Phil Noble/File Photo · Reuters / REUTERS
All totaled, the AI hyperscalers are expected to spend a whopping $650 billion in capital expenditures in 2026, and Amazon will account for $200 billion of that.
Despite that, Wall Street has been largely positive on Amazon, with the stock of the cloud and e-commerce giant up 13% year to date. That’s better than Google’s 12% increase, and well ahead of Microsoft, which is down 12%.
Amazon, however, is also dealing with increased shipping costs due to rising fuel prices, which could impact e-commerce revenue in the quarter.
Tue, April 28, 2026 at 9:42 PM UTC Elon Musk takes the stand in OpenAI trial
Tesla (TSLA) and SpaceX (SPAX.PVT) CEO Elon Musk took the stand on Monday to offer testimony in a high-profile legal battle with OpenAI and Sam Altman.
Musk is accusing Altman, OpenAI president Greg Brockman, and others of misleading him about the company’s plans to transition from a nonprofit to a for-profit business. Other notable names, including Microsoft CEO Satya Nadella and Altman himself are expected to take the stand as well.
In his initial remarks, Musk spoke in his characteristic style of apocalyptic pronouncements.
“If we make it OK to loot a charity, the entire foundation of charitable giving in America will be destroyed. That’s my concern,” Musk said, according to Reuters.
Elon Musk arrives at the federal courthouse as opening statements begin in the trial over Elon Musk’s lawsuit against OpenAI in Oakland, California, on April 28, 2026. (Karl Mondon / AFP via Getty Images) · KARL MONDON via Getty Images Tue, April 28, 2026 at 3:21 PM UTC Brace for eye-popping AI spending plans when ‘Magnificent 7’ earnings roll in
Yahoo Finance’s Brian Sozzi reports:
A Microsoft employee walks in the Microsoft cloud data hall in the Microsoft data centre, in Dublin, Ireland, Feb. 17, 2026. REUTERS/Clodagh Kilcoyne/File Photo · REUTERS / REUTERS
Investors should brace for eye-popping capital expenditures numbers from major cloud service providers like Amazon (AMZN) and Microsoft (MSFT) when they report earnings this week.
In a new note, JPMorgan strategist Samik Chatterjee offered some fresh estimates on accelerating AI infrastructure spending.
“Data center capex among the top 4 US cloud service providers continues to trend higher for 2026 following our last update, … driving another upward revision to the outlook — from +52% to +63% growth in 2026 — with robust double-digit growth increases evident across all US hyperscalers,” Chatterjee wrote.
Tue, April 28, 2026 at 1:49 PM UTC Oracle, AMD, and CoreWeave stocks sink after report says OpenAI missed sales, user targets
Yahoo Finance’s Ines Ferré reports:
Oracle (ORCL), AMD (AMD), CoreWeave (CRWV), and other AI-driven names sank on Tuesday. Investors sold off shares of companies tied to OpenAI (OPAI.PVT) after The Wall Street Journal reported the AI developer recently missed sales and user targets, renewing concerns about overspending in the sector.
Citing people familiar with the matter, the report said the startup fell short of its internal goal of 1 billion weekly active users for its chatbot ChatGPT by year-end. It also reportedly missed its annual revenue target for the product. Meanwhile, Google’s (GOOG) competing AI bot, Gemini, grew over the past year, eating into OpenAI’s market share.
Mon, April 27, 2026 at 4:53 PM UTC Elon Musk and OpenAI battle goes to trial
The years-long legal battle between Elon Musk and OpenAI (OPAI.PVT) finally goes to court on Monday.
Jury selection in the lawsuit kicks off Monday in the US District Court for the Northern District of California, with opening arguments expected to begin Tuesday.
Tesla Motors CEO Elon Musk, Y Combinator president Sam Altman, and The New York Times Financial Columnist Andrew Ross Sorkin speak onstage at Yerba Buena Center for the Arts on Oct. 6, 2015, in San Francisco, Calif. (Mike Windle/Getty Images for Vanity Fair) · Mike Windle via Getty Images
The witness list for both sides is a who’s who of tech heavyweights, including Musk, OpenAI CEO Sam Altman, and Microsoft CEO Satya Nadella. Depending on how the plaintiffs decide, Musk could take the witness stand as early as Tuesday.
The outcome of the case could have a significant impact on the AI industry and, if it goes Musk’s way, could derail OpenAI’s future IPO plans.
In his suit, Musk accuses Altman, OpenAI president Greg Brockman, and others of misleading him about the company’s plans to transition from a nonprofit to a for-profit business. Microsoft (MSFT), which has invested billions in OpenAI, is also named as a defendant in the case.
Mon, April 27, 2026 at 3:23 PM UTC OpenAI and Microsoft amend deal
Microsoft (MSFT) on Monday announced an amended long-term agreement with OpenAI (OPAI.PVT) that will see the company no longer have exclusive access to the AI startup’s intellectual property and AI models, while also altering its revenue-sharing deal with OpenAI.
The news comes ahead of Microsoft’s earnings report on Wednesday, and just six months after the two companies formalized an agreement that allowed OpenAI to transform into a for-profit business.
Microsoft CEO Satya Nadella speaks with OpenAI CEO Sam Altman in Seattle, Washington, on May 19, 2025. (Jason Redmond / AFP via Getty Images) · JASON REDMOND via Getty Images
Under the terms of that deal, Microsoft was given exclusive access to OpenAI’s IP and models until the company achieved artificial general intelligence (AGI), or AI that’s as smart or smarter than humans. The new agreement, however, eliminates that clause, allowing OpenAI to provide its models to Microsoft’s competitors.
Microsoft’s Azure will continue to serve as OpenAI’s primary cloud platform and get access to its latest products first, but the new agreement means OpenAI can now offer all of its services through competing cloud providers, such as Amazon Web Services.
Mon, April 27, 2026 at 11:48 AM UTC Qualcomm jumps 12% as analyst points to next big catalyst for chipmaker
Qualcomm (QCOM) stock jumped more than 11% on Monday, extending Friday’s 11% jump.
Tech analyst Ming-Chi Kuo from TF International Securities posted on X that OpenAI (OPAI.PVT) is working with Qualcomm and Taiwanese semiconductor designer MediaTek (2454.TW) to develop smartphone processors.
The social media post reinforced optimism that artificial intelligence could kick off a new wave of smartphone upgrades, a big win for chipmakers focused on mobile processors. Qualcomm is best known for its chips that power smartphones. Mass production of the processors is expected in 2028.
Mon, April 27, 2026 at 11:33 AM UTC Mag 7 stocks open their books after a tough start to the year
Yahoo Finance’s Myles Udland and Jake Conley write about what to expect from Big Tech earnings this week:
The Magnificent Seven stocks, the Big Tech heavyweights that have for the past decade powered the American economy, spent much of the first quarter languishing. During the last week of March, the companies shed a combined $850 billion in market value, and by the end of the month, all seven members were negative on the year.
Yet, as our own Brian Sozzi pointed out, as peace talk headlines began percolating in the Middle East, tech has gotten a bid — and not without reason.
Magnificent Seven net income is estimated to grow 25% in 2026 compared to 11% for the S&P 493, with that relative outperformance on net income expected to stretch into 2027, according to Morgan Stanley. The Roundhill Magnificent Seven ETF (MAGS), which tracks the basket of tech leaders, has returned 13% over the past month against a gain of 9% on the S&P 500.
This week’s earnings results will be the first true test of investor appetite for the tech sector since the war in Iran began rippling through the global economy in late February. The reports will also give investors an update on how the companies are thinking about their massive AI spending projections set at the beginning of this year through fourth quarter earnings — especially after Meta announced 8,000 layoffs and Microsoft began offering buyout packages.