The mega earnings week continues as on Wednesday, October 30th, tech giants Microsoft (MSFT) and Meta Platforms (META) are set to release their latest quarterly earnings results. Microsoft will report first-quarter earnings for the 2025 fiscal year, with consensus estimates projecting an EPS of $3.10 (up from $2.99 a year ago) and revenue of $64.57 billion (compared to $56.52 billion last year).
Meta Platforms, on the other hand, will announce its third-quarter 2024 results, with an expected EPS of $5.22 (versus $4.39 a year ago) and revenue projected at $40.10 billion (up from $34.15 billion last year).
Historically, both companies have exceeded earnings and revenue expectations for the past five quarters. In terms of anticipated stock movement following these earnings releases, Microsoft is expected to fluctuate ±4.5%, while Meta Platforms is projected to move ±8%. Following their last earnings reports, the stocks saw moves of -1.1% and +4.8%, respectively.
Lastly, let’s take a closer look at MSFT’s and META’s price performance over various timeframes:
The outlook remains bullish as long as support holds at 418. The RSI is above the neutral level of 50, and the MACD is positive and above its signal line, suggesting continued upward momentum. Additionally, the stock is trading above both its 20-day (419.18) and 50-day (420.79) moving averages. However, a break below 418 could trigger downside targets of 408 and 402.
Microsoft holds a TC Quantamental Rating (TCQR) of 49 out of 100, reflecting moderate fundamentals within its industry. The company’s TCQR has been largely neutral since March 2022. Microsoft’s strongest factor scores are Quality (67) and Momentum (56), highlighting its financial stability, effective management, and positive investor sentiment. Based on the TCQR and accounting for price volatility, a 12-month stock valuation of $418 is assigned to MSFT.
The RSI is above 50, and while the MACD is positive, it remains below its signal line, indicating potential for a short-term pullback. The stock is trading below its 20-day moving average (580.84) but above its 50-day (552.19). Support is expected at 559; a break below this level could lead to targets of 539 and 528. On the upside, holding above 559 could point to a target of 619.
Meta Platforms has a strong TCQR of 59 out of 100, indicating favorable fundamentals compared to its industry peers. Since 2020, META has consistently ranked favorably, benefiting from high scores in Quality (81) and Momentum (87), alongside a Growth factor score of 70, reflecting strong EPS and revenue growth that outpaced industry averages. Given META’s TCQR and considering price volatility, a 12-month target price of $625 is assigned.
