Dow Jones Today: Stock Futures Jump After Strong Earnings From Microsoft, Meta as Apple, A
May 1, 2025
What Analysts Think of Amazon Ahead of Earnings8 minutes ago Amazon (AMZN) is set to release first-quarter results after the closing bell, with analysts bullish on the online retail and tech giant.
All 26 analysts tracked by Visible Alpha who follow the company rate Amazon’s stock as a “buy,” with every analyst holding a price target above the stock’s current levels. The average price target is around $241.
Amazon shares were up more than 3% at around $191 in late trading Thursday. The stock has lost about 13% since the beginning of the year, amid a tariff-fueled market sell-off that has hit the Magnificent Seven hard.
Amazon is expected to report $155 billion in revenue for the first quarter, up 8% from the first quarter a year ago. Adjusted earnings per share are expected to rise to $1.75 from $1.46 the same time last year.
Analysts will likely seek more information about Amazon’s plans to keep up with the spending pace of its artificial intelligence rivals. But Wall Street’s attention is also focused on the impact of the Trump administration’s tariffs.
Morgan Stanley analysts wrote recently that they estimate 18% of products on Amazon are imported from China, and that roughly 60% of third-party sellers on the platform have “some China exposure” that could affect ad spending plans.
Executives may also be asked about reports earlier this week that the company planned to show shoppers the effects of tariffs on items for purchase, which led to a stiff rebuke from the White House. The company later said it considered such a move, but only for its Amazon Haul business, and that the idea “was never approved and is not going to happen.”
–Aaron McDade
What Wall Street Thinks of Apple Stock Ahead of Earnings27 minutes ago Apple (AAPL) is slated to report fiscal second-quarter results after the market closes today, with investors likely to be watching for clues on how shifting trade policies could impact the iPhone maker.
Bank of America analysts recently reiterated a “buy” rating, but lowered their price target to $240 from $250, citing “uncertainty in the economic outlook.” The analysts said they anticipate Apple could see some near-term upside “driven by some pull forward of demand” driven by tariff worries, but warned that demand could weaken as concerns about the economy weigh on consumers.
Several analysts have also warned the company could be hurt by a trade war with China, where Apple manufactures an estimated 90% of its products. President Donald Trump has said he expects tariffs on China “will come down substantially” but not drop to zero. To help mitigate some risk, Apple is reportedly planning to move the assembly of all iPhones it sells in the U.S. to India by the end of 2026.
Of the 15 analysts covering Apple tracked by Visible Alpha, nine have a “buy” or equivalent rating for the stock, with four “hold” ratings, and two “sell” ratings. Their consensus price target is near $232.
Apple shares were up fractionally at around $213 in late trading Thursday. The stock has dropped 15% since the start of the year.
Analysts on average expect Apple to report second-quarter revenue of $94.72 billion, up 4% year-over-year, and net income of $24.47 billion, or $1.63 per share, up from $23.64 billion, or $1.53 per share, a year earlier.
–Andrew Kessel
Is The AI Trade Back On?1 hr 31 min ago Wall Street is partying like it’s 2024.
Shares of tech mega-caps soared on Thursday as strong earnings reports from Microsoft (MSFT) and Meta Platforms (META) breathed fresh life into the AI trade that’s fueled stock market gains for the past two years.
The results boosted beaten-down AI and Big Tech stocks. Nvidia (NVDA) stock, which entered Thursday’s session down 19% since the start of the year, was up about 4% in recent trading. Nuclear power providers Vistra (VST) and Constellation Energy (CEG), whose stocks soared last year on booming demand for electricity to power AI data centers, were up more than 6% and 8%, respectively, lifting both stocks into positive territory for the year. Networking tech company Arista Networks (ANET), down about 30% year-to-date as of Wednesday, jumped more than 7%.
AI stocks were hit hard by this year’s market mayhem. AI stocks sold off in late January after advances by Chinese startup DeepSeek called into question the economic assumptions underpinning the AI trade. That panic was followed by President Donald Trump’s global trade war, which sent investors racing into safe havens amid mounting concerns about a worldwide economic slowdown.
The economic uncertainty appeared to be taking a toll on AI investment. Microsoft’s head of cloud operations last month said the company was pausing work on some AI data centers in their early phases, and Amazon was reportedly mulling slowing its data-center expansion. Microsoft and Meta’s results put those concerns to bed—at least for now.
The results also gave investors some evidence that AI investments are paying off. Meta CEO Mark Zuckerberg told analysts Wednesday that AI-driven content recommendations had increased time spent on its platforms by between 6% and 35% in the last six months.
Read the full article here.
–Colin Laidley
Analysts Raise Microsoft Price Targets on AI-Fueled Growth2 hr 4 min ago Microsoft (MSFT) shares surged Thursday after the company posted what Morgan Stanley called “one of their strongest quarters in recent memory,” on growth fueled by demand for cloud computing and AI.
Microsoft shares were up more than 8% in recent trading to about $430, pushing them into positive territory for 2025.
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Morgan Stanley raised its price target to $482 from $472 following the results, which beat Wall Street’s revenue expectations across all segments. “We remain strong buyers of this GenAI winner,” the analysts said. “Bottom-line, while the macro presents uncertainty, Microsoft appears poised to yield on GenAI investments which should support share gains and more durable growth ahead.”
Bank of America maintained a $515 target, and noted earlier-than-expected returns on Microsoft’s infrastructure investments. During Microsoft’s earnings call Wednesday, CFO Amy Hood reiterated the company’s plan to spend $80 billion on infrastructure in fiscal 2025. Hood said demand for AI has continued to grow, to the point Microsoft expects “to have some AI capacity constraints beyond June.”
Meanwhile, Jefferies boosted its target to a more bullish $550 and Wedbush moved to $515, both from $475 previously. “We are laser focused on the AI piece of this MSFT story,” Wedbush said. “All metrics were ahead of expectations which give us added confidence in the AI Revolution bull thesis.”
Friday’s Jobs Report Has Gotten More Important3 hr 12 min ago The health of the job market has taken on new significance for financial markets and the Federal Reserve as signs mount that President Donald Trump’s tariffs are straining the economy.Forecasters expect Friday’s report on the job market to show the economy added 133,000 jobs in April, down from 228,000 in March, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.
Anything much less than that could be a red flag for the economy’s trajectory, especially in light of other economic data this week showing the nation’s economic output shrank in the first quarter.”A report like this builds anticipation for Friday’s payroll numbers since the trajectory for growth hinges on the health of the labor market,” Jeffrey Roach, chief economist for LPL Financial, wrote in a commentary.Signs of trouble in the labor market continued to mount Thursday when a survey of supply managers showed the industry the tariffs are meant to help—manufacturing—is struggling to adapt to them. The survey suggested manufacturers are laying off workers as tariff orders are being implemented.”Respondents’ companies continue to reduce headcounts through layoffs, attrition, and hiring freezes,” Timothy R. Fiore, chair of the Institute for Supply Management, wrote in Thursday’s report. “Layoffs were the primary tools used, an indication that headcount reduction is becoming more urgent.”A worse-than-expected jobs report could have implications for the Federal Reserve, which is tasked with a dual mandate to keep employment high while subduing inflation. A drop in employment could encourage the Fed to boost the economy by dropping its benchmark interest rate from its current high level, which would reduce borrowing costs on all kinds of loans.
–Diccon Hyatt
Watch These Qualcomm Levels as Stock Drops on Soft Outlook3 hr 48 min ago Qualcomm (QCOM) shares tumbled Thursday after the mobile chip designer issued a light revenue outlook that overshadowed better-than-expected quarterly results.
While the company said it doesn’t currently anticipate any material impact from tariffs, and that it had not seen elevated pre-emptive product purchasing ahead of possible import duties during the quarter, it cautioned the situation could change due to unpredictable U.S.-China trade tensions.
Qualcomm’s shares were down 8% at around $136 in recent trading. The stock has lost about 17% of its value over the past 12 months, due in part to concerns that the company could see a significant decline in revenue as key customer Apple (AAPL) ramps up production of in-house chips to power its devices. Source: TradingView.com.
Qualcomm shares had been entrenched in a multi-month descending channel since setting their record high last June. More recently, the stock rallied from the pattern’s lower trendline, which coincided with the relative strength index crossing back above the 50 threshold to signal accelerating price momentum.
However, the buying enthusiasm ended abruptly Thursday, potentially paving the way for the stock to resume its longer-term downtrend.
Investors should watch major support levels on Qualcomm’s chart around $135 and $126 while also monitoring key overhead areas near $153 and $176.
Read the full technical analysis piece here.
–Timothy Smith
Meta Stock Rises as Wall Street Bullishness Intensifies4 hr 45 min ago Shares of Meta Platforms (META), the parent company of Facebook and Instagram, surged more than 6% this morning. The shares remain off 2025 highs, but have jumped out of the hole into which they’d stumbled in April.
The stock is being driven higher by quarterly financial results and related executive commentary, delivered last night, that investors are interpreting as a sign of strength in the tech trade. Earnings and revenue came in higher than Wall Street expected, and the company boasted of growing use of its AI offerings and reaffirmed big capital spending plans.
Wall Street analysts were already bullish on Meta stock before the results, and several turned even more so after them. Bank of America lifted its target by $50 to $690, while JPMorgan boosted its own by $65 to $675. (The Visible Alpha average is around $689 today.)
“We know it’s not that easy to execute so well [and] deliver strong growth off a big base,” JPMorgan wrote. “But we believe Meta is keenly aware that with strong execution [and] AI transparency, it will get a longer leash from the Street on AI investments.”
Canaccord Genuity’s Maria Ripps on Thursday maintained an $825 price target that is substantially higher than any other currently tracked by Visible Alpha and which would represent a record high. The stock finished Wednesday at $549.
“While the company does face potential macro and regulatory headwinds, with shares still well off recent highs and a long runway ahead for AI-driven improvements to key business functions, we continue to view the stock as a core holding for tech investors,” Ripps wrote.
–David Marino-Nachison
Eli Lilly Stock Sinks as Lowered Outlook Outweighs Solid Q15 hr 24 min ago Shares of Eli Lilly (LLY) fell Thursday after the pharmaceutical giant’s lowered profit projections outweighed first-quarter results that came in above analysts’ expectations.
The drugmaker posted adjusted earnings per share of $3.34 on revenue that increased 45% year-over-year to $12.73 billion. Analysts surveyed by Visible Alpha projected $3.25 and $12.62 billion, respectively.
Sales of Lilly’s blockbuster weight-loss drugs Mounjaro and Zepbound rose to $3.84 billion and $2.31 billion, respectively. Mounjaro sales topped expectations of $3.76 billion and Zepbound fell just short of the $2.33 billion consensus.
Lilly affirmed its full-year revenue guidance, but lowered its profit forecasts. Last quarter, it said it expected 2025 revenue between $58.0 to $61.0 billion, with EPS from $22.05 to $23.55, and adjusted EPS of $22.50 to $24.00.
EPS is now forecast within a range of $20.17 to $21.67, while adjusted EPS is now projected at $20.78 to $22.28. The drugmaker said the reduction is due to “net losses on investments in equity securities,” along with acquired in-process research and development (IPR&D) charges, which came in at about $1.57 billion in the first quarter.
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Lilly shares were down 7% recently.
Nvidia Rises as Big Tech Continues Spending Big on AI5 hr 59 min ago Nvidia (NVDA) shares are surging early Thursday as two of its key customers—Microsoft (MSFT) and Meta Platforms (META)—posted strong results and committed to continuing their heavy artificial intelligence spending.
During Microsoft’s earnings call Wednesday, CFO Amy Hood reiterated the company’s plan to spend $80 billion on AI infrastructure in fiscal 2025. Meta, meanwhile, said it plans to boost its capital expenditures this year to $64 billion to $72 billion to grow its AI capacity. Mark Zuckerberg, the social media giant’s CEO, called the opportunities in deploying the technology “staggering” during Meta’s earnings call.
Nvidia shares, which were up about 4% recently, have been struggling this year—the stock was down 19% year-to-date entering Thursday—partly due to investor concerns that Big Tech is slowing or pausing some AI data center buildouts amid the uncertain economic outlook. The company dominates the market for chips needed to build AI systems.
Shares in the chipmaker have also taken a hit from the rising economic uncertainty triggered by the trade war as well as growing tensions between Beijing and Washington. Nvidia recently warned investors that it expects to take a $5.5 billion first-quarter charge after the U.S. government limited exports of its AI chips to China. Nvidia is expected to report quarterly earnings later this month.
–Nisha Gopalan
Microsoft Levels to Watch as Stock Soars After Earnings6 hr 46 min ago Microsoft (MSFT) shares surged in premarket trading after the company issued fiscal third-quarter results and guidance that topped Wall Street’s expectations. boosted by strong growth in its cloud business.
CEO Satya Nadella said the company’s Intelligent Cloud segment, which houses its Azure cloud computing platform, continues to benefit from businesses’ need to expand output, reduce costs and accelerate growth, adding that Microsoft continues to innovate across its AI stack.
Following a successful retest of the top trendline of a falling wedge pattern, Microsoft shares staged a sharp move higher leading into the tech giant’s earning’s report, potentially setting the stage for a longer-term bullish reversal. Source: TradingView.com.
It’s also worth noting that the shares on Wednesday registered their highest trading volume in three weeks, suggesting that larger market participants, such as institutional investors and hedge funds, had positioned for a significant post-earnings move.
Investors should watch two key overhead areas on Microsoft’s chart around $442 and $468, while also monitoring crucial support levels near $395 and $359.
Microsoft shares were up nearly 9% at around $430 in recent premarket trading.
Read the full technical analysis piece here.
–Timothy Smith
Major Index Stock Futures Point to Sharply Higher Open7 hr 25 min ago Futures tied to the Dow Jones Industrial Average were up 0.8%.
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S&P 500 futures rose 1.3%.
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Nasdaq 100 futures surged 1.9%.
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