Big Tech Reports Earnings, Sparking Massive Market Moves
Your Daily Update for July 31, 2026. Plus: Alphabet, Microsoft, Meta, Amazon, and Apple reported earnings this week, sparking massive moves across the stock market.
Welcome to today’s daily update for Friday, July 31, 2026. Here’s everything you need to know.
The Breakdown
Alphabet, Microsoft, Meta, Amazon, and Apple have dropped their earnings reports for Q2 2026 – here’s everything you need to know.
The reports were projected to hinge on AI spending and revenue, which have been the key concern for investors as signs of a growing bubble in the AI market continue to rise. Investors have been particularly concerned over circular financing – a term that describes when companies begin funding each other, creating a false perception of continuous growth – and the idea that AI stocks are incredibly overvalued, meaning that the market is heading for a crash. However, several stocks displayed strong signs of growth in the second quarter of 2026.
Alphabet was the first this week to report earnings, showing signs of strong growth but still experiencing mixed reactions in the stock market. The company beat revenue expectations for the quarter, with $119.80 billion against projections of $116.93 billion, and this development was largely fueled by a massive explosion in Google Cloud growth – more than 82% year-over-year (YoY).
Nevertheless, the corporation also reported that capital expenditures for the year are also on the rise, growing from the projections of $180 billion last quarter to adjusted expectations of almost $205 billion. Essentially, Google is pouring money into new AI infrastructure, and while they are seeing substantial growth, investors aren’t completely convinced by the rising spending.
Microsoft beat earnings by a significant amount, with the company’s stock ticker MSFT soaring more than 15.5% in their largest single-day jump since 2008. Quarterly revenue jumped 18% YoY, reaching $90.01 billion and beating investor expectations of $87.62 billion.
However, the key component for investors was Microsoft’s growth in the AI sector. Azure, the company’s cloud computing platform, grew by 43% YoY, and annual Azure revenue crossed the $100 billion mark for the first time. In total, Microsoft revenue from cloud computing services amounted to $59.3 billion for the quarter, rising 27% from the same period last year. Officials also confirmed that the company would be bringing down capital expenditures slightly as Microsoft increases data center efficiency, but they plan to continue spending on new AI infrastructure for years to come.
The next big earnings report was Meta, who experienced the opposite market reaction to Microsoft. Meta reported earnings between $61 billion and $64 billion, with a median around $62.5 billion – lower than analysts’ projections of $63.15 billion for the quarter. The company also saw a staggering 91% drop in free cash flow – the amount of money a corporation has left over after paying for day-to-day operations – as AI spending ramps up. Investors were heavily unconvinced by CEO Mark Zuckerberg’s vague reasoning and failed to receive much detail from the report. This, in addition to the fact that quarterly revenue missed the mark, contributed to an 8% drop in Meta stock on Wednesday.
Amazon and Apple dropped earnings reports on Thursday after the bell, but received opposite reactions from the stock market.
Amazon stock (AMZN) jumped 6.5% in extended trading after a strong earnings report. Total revenue rose 20% YoY to $200.6 billion, fueled by 37% YoY growth in the Amazon Web Services (AWS) department. AWS provides AI-based cloud computing services that have been the focus of the company’s capital expenditures in recent years, and those investments appear to be paying off. AWS sales hit $42.2 billion for the quarter, smashing investor projections of $40.54 billion, and operating income expanded as a result of the fresh growth. However, capital expenditures into new AI investments remain high, leaving investors satisfied but with a remaining sense of caution.
Meanwhile, Apple reported record earnings that showed signs of strong growth, but the company’s stock fell more than 8% in after-hours trading after revenue projections missed the mark. Revenue from the iPhone and the MacBook rose 22% and 29%, respectively, and the company’s introduction of Apple Intelligence appears to be highly favored by buyers.
However, revenue in China fell below Wall Street’s expectations, landing at $18.82 billion against projections of $19.58 billion. Apple also confirmed that growth for the next quarter would likely range between 9% and 11% – lower than investor predictions of 12% – due to supply chain restrictions, chip shortages, and ongoing geopolitical tensions, leading to the stock drop.
These big five companies’ earnings reports for the quarter are complete, but more are on the way. Semiconductor manufacturers like AMD and Super Micro Computer are set to release earnings within the next few weeks, and the next Big Tech report will be the announcement of Nvidia’s Q2 2026 earnings on August 26.
The Global Snapshot
Hungary and Romania have been forced to cut output at crucial nuclear power plants as the Danube River reaches record-low levels, bringing a host of other problems. Nuclear power plants utilize massive amounts of water for the purpose of cooling, though they are still considered renewable due to their ability to produce clean energy around the clock. Now, both nations are shutting down nuclear plants and urging citizens to minimize water and electricity usage. The river’s low levels are also negatively affecting local tourism and shipping routes, which need a moderate to high water volume to function. In Budapest, Hungarian officials measured water levels yesterday at just 9 inches – much too low for daily operations.
Kenyan officials have confirmed that the deaths of at least 15 elephants in the nation’s famed Amboseli National Park were likely due to cyanide poisoning. According to the Kenyan Wildlife Service, the elephants showed signs of partial paralysis before death, which is a key symptom of chemical poisoning, and further analysis of the bodies found trace amounts of cyanide. Cyanide is used as a potent pesticide on several tomato farms near the park, and it has also been used by poachers to extract tusks and other goods from legally-protected animals. The tragedy is being investigated further by Kenyan authorities, who are attempting to find out whether the cyanide could have spread to the rest of the valley and whether it poses a threat to other wildlife in the park or livestock in the area.
Fact of the Day (The Fact Site): Jupiter completes a rotation of the Sun – one Jupiter year – every 11.86 Earth years, or 4,333 Earth days. However, it is the fastest-spinning planet in our solar system, with one rotation on its axis – one Jupiter day – lasting just 9.9 Earth hours.
Quote of the Day (Gracious Quotes): Holding onto your anger is like drinking poison and expecting the other person to die. (Buddha)
Word of the Day (Merriam-Webster): Sultry (adj, SULL-tree) - Sultry means “very hot and humid” when it describes such things as seasons, days, and weather.
In a Sentence: The restaurant’s rooftop deck is the place to be on sultry summer nights.
Image: Nick Youngson / CC BY-SA 3.0
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