Buy Hold Rant

Big Tech Showdown: Microsoft vs Google vs Meta Earnings Breakdown

Name: Big Tech Showdown: Microsoft vs Google vs Meta Earnings Breakdown
Uploaded: 2025-10-30T17:50:06Z
Description: Microsoft ($MSFT), Meta ($META), and Google ($GOOGL) just reported earnings — and the results are wild. Despite strong beats across the board, not every stock is reacting the same way. In this clip from the Buy Hold Rant podcast, Hamid and Dustin dive into the Q3 earnings and break down what Wall St

10/30/2025, 5:50:06 PM

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Economic Summary

A public company owns a stake in OpenAI (context: Microsoft has been widely associated), but that exposure appears largely priced into Microsoft (MSFT) shares, limiting incremental upside.
Microsoft (MSFT) beat quarterly EPS by ~12% and revenue by ~3% yet traded down, reflecting elevated expectations and a 37x PE against roughly 15% growth that concerns valuation-sensitive investors.
Alphabet/Google (GOOGL) showed exceptional results—over $100B in quarterly revenue ($102B) and a 26% EPS beat—indicating robust demand and notable upside surprise versus estimates.
Meta (META) also beat revenue (just over $50B) and EPS ($7.25), but neutral guidance and investor concern about heavy AI-talent spending pressured the stock despite attractive fundamentals (annualized ~$28 EPS, ~26 PE).

Bullish

Alphabet (Google) delivered a blowout quarter with $102B revenue and a 26% EPS beat, signaling strong ad and cloud momentum.
Meta reported $7.25 quarterly EPS (annualized ~$28), PE ~26, making it attractive around the $700 price level.
Mega-cap earnings across big tech show underlying strength despite mixed after-hours reactions.

Bearish

Microsoft's stock trades at ~37x earnings while growing ~15%, suggesting an expensive valuation.
The market likely already priced Microsoft’s OpenAI stake and associated upside into its share price.
Investor worries about Meta's aggressive AI talent spending and potential repeat of AR/VR overspending.

Bullish tickers

GOOGLMETA

Bearish tickers

MSFT

Bullish

Reported a ~12% EPS beat and modest revenue beat; has cloud and AI exposure via OpenAI stake.

Bearish

Valuation appears rich at ~37x earnings versus ~15% growth; OpenAI-related upside largely priced in.

GOOGL

Bullish

Huge quarter with $102B revenue and a 26% EPS beat, signaling strong core business momentum.