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Meta Platforms (NASDAQ:META) is one of the top-performing Magnificent 7 stocks in 2025 and could highlight its AI investments when the company reports second-quarter financial results after market close Wednesday.

Here are the earnings estimates, what experts are saying ahead of the report, and key items to watch.

Earnings Estimates: Analysts expect Meta Platforms to report second-quarter revenue of $44.6 billion, up from $39.1 billion in last year’s second quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in 11 straight quarters.

Analysts expect the company to report second-quarter earnings per share of $5.86, up from $5.16 in last year’s second quarter. The company has beaten analyst estimates for earnings per share in nine straight quarters.

Meta’s guidance calls for second-quarter revenue to be in a range of $42.5 billion to $45.5 billion.

Read Also: Mark Zuckerberg’s Meta Shuts Down EU Political Ads On Facebook, Instagram, WhatsApp — Calls New Rules ‘Unworkable’

What Experts are Saying: Freedom Capital Markets Chief Global Strategist Jay Woods said Meta stock has had mild reactions after the last four quarterly reports, with three rallies and one sell-off, each move being 5% or less.

Woods said the implied volatility for the current earnings day is a move of +/- 7.4%.

As for what investors are watching in the current earnings report, Woods highlights two key areas.

“How is ad growth adding to its bottom line? What is the future CapEx spend looking like and has their AI spend started to see a return on its investment?” Woods asks.

The market expert said Ad growth and AI spending will be the keys to watch.

Bank of America Securities analyst Justin Post highlighted Meta’s aggressive AI spending and investments on grabbing top AI talent from other companies as an item to watch in the company’s quarterly expenses.

The analyst reiterated a Buy rating and $775 price target ahead of the report.

Post said items to watch include the company’s investment in Scale AI and the formation of the company’s Super Intelligence team.

The analyst expects Meta to report strong guidance with AI-driven improvements helping ad revenue along with increased monetization for Threads, WhatsApp and messaging.

Key Items to Watch: A report in July highlighted Meta’s Threads platform growing to more than 350 million registered users and having 115.1 million daily active users on the mobile app.

The latest mobile daily active user numbers put Threads close to the same total as rival X, although Threads significantly trails X in web traffic.

Threads could be the next platform for Meta to focus on monetization with its growing user base and metrics.

In the first quarter, Meta Platforms saw its family daily active people total up 6% year-over-year to 3.43 billion.

The company reported a 5% year-over-year increase in the number of ad impressions and a 10% year-over-year increase in the average price per ad. Investors and analysts will be closely watching these metrics.

Meta CEO Mark Zuckerberg called the first quarter “a strong start to an important year.” Zuckerberg said Meta AI had around 1 billion monthly active users at the time.

Investors and analysts will be looking for updates on important milestones like this as the company spends more on AI.

META Price Action: Meta stock is down 0.9% to $710.87 on Tuesday versus a 52-week trading range of $450.80 to $747.90. Meta stock is up 18.6% year-to-date in 2025.

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Photo: Skorzewiak/Shutterstock

Microsoft Corporation (NASDAQ:MSFT) is expected to highlight growth from AI and cloud services when the technology giant reports its fourth-quarter financial results on Wednesday after the market close.

Here are the earnings estimates, what experts are saying, and key items to watch.

Earnings Estimates: Analysts expect Microsoft to report fourth-quarter revenue of $73.8 billion. That’s up from $64.7 billion in last year’s fourth quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in nine straight quarters.

Analysts expect Microsoft to report fourth-quarter earnings per share of $3.37, up from $2.95 in last year’s fourth quarter. The company has beaten analyst estimates for earnings per share in 11 straight quarters.

Read Also: $19.5 Trillion Earnings Blitz: Wall Street Faces Make-Or-Break 72 Hours

What Experts Are Saying: Microsoft has been a standout tech stock in 2025. Its shares are up 22% year-to-date and trading at all-time highs, as highlighted by Freedom Capital Markets Chief Global Strategist Jay Woods.

“The question is—can they keep the momentum going?” Woods asks in a weekly newsletter.

Woods expects investors to ask how Microsoft is integrating its AI spending into products and whether it’s boosting revenue.

Another key focus is Microsoft’s cloud services performance, Woods says, noting how Azure will “bolster” cloud operations.

Wedbush analyst Dan Ives reiterated an Outperform rating and $600 price target ahead of Microsoft’s quarterly results.

“We expect more good news next week from Redmond as Nadella & Co. will deliver another robust quarter driven by the AI Revolution,” Ives said in a recent analyst note.

Ives said Microsoft is “firing on all cylinders” ahead of the earnings report.

In his latest note, Ives said the $600 price target could be “conservative.” Microsoft will be the next company to join the $4 trillion market capitalization club this summer and possibly hit $5 trillion in the next 18 months, he predicts.

Here are some other recent analyst ratings on Microsoft and their price targets:

• Raymond James: Maintained Outperform rating, raised price target from $490 to $570
• Stifel: Maintained Buy rating, raised price target from $500 to $550
• Evercore ISI Group: Maintained Outperform rating, raised price target from $515 to $545
• Loop Capital: Maintained Buy rating, raised price target from $550 to $600
• UBS: Maintained Buy rating, raised price target from $500 to $600

Key Items to Watch: Microsoft’s earnings report comes as the company is investigating whether a leak from its early alert system for cybersecurity companies may have contributed to hackers being able to exploit flaws in the SharePoint service.

The company may provide an update on the cybersecurity item and the potential financial ramifications of the hack.

Investors and analysts will likely center on AI and cloud when Microsoft reports results and management share commentary on the results and future guidance. Microsoft saw growth across its main segments in the third quarter with Intelligent Cloud revenue up 21% year-over-year, the most of any main segment.

Overall cloud revenue is up 20% year-over-year.

“Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth,” Microsoft CEO Satya Nadella said at the time. “From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.”

Microsoft’s earnings report could have a huge impact on some of the largest stock market indexes and ETFs. The stock is a member of the S&P 500, Dow Jones Industrial Average and Magnificent 7.

With its high stock price, Microsoft is the second largest weighting (7.0%) in the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), which tracks the price-weighted Dow Jones Industrial Average.

Microsoft is also the second-largest holding in the SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500 at 7.0% of assets.

In the Roundhill Magnificent Seven ETF (BATS:MAGS), Microsoft is the fifth-largest holding at 13.9% of assets.

Microsoft is one of several Magnificent 7 stocks that will report during the week and could be one of the most important stocks given its prominence in these key indexes along with its presence among key growth sectors like AI and cloud.

MSFT Price Action: Microsoft stock is up 0.3% to $514.04 on Tuesday versus a 52-week trading range of $344.79 to $518.29. Microsoft stock is up 22.8% year-to-date, outperforming the S&P 500 (+8.8%) and Dow Jones Industrial Average (+5.3%).

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Image: Shutterstock

PayPal Holdings (NASDAQ:PYPL) stock dropped Tuesday after it reported second-quarter 2025 results.

The company reported a quarterly revenue growth of 5% year-over-year to $8.29 billion, topping the analyst consensus estimate of $8.08 billion. 

The adjusted EPS was $1.40, beating the analyst consensus estimate of $1.29.

Transaction Metrics And Margins

Total payment volumes rose by 6% year-over-year, reaching $443.5 billion in the quarter. However, payment transactions declined by 5%, totaling 6.2 billion.

Also Read: PayPal Rolls Out New Crypto Feature: Here’s Why You Should Care

On a trailing 12-month basis, the number of payment transactions per active account decreased by 4%, averaging $58.3.

The total number of active accounts increased by 2%, bringing the total to 438 million. Sequentially, active accounts rose by 0.4%, or 1.7 million accounts.

The operating margin improved by 134 basis points to 18.1%, while the adjusted operating margin increased by 132 basis points to 19.8%.

The operating cash flow for the second quarter was at 898 million, free cash flow was $692 million, and adjsuted free cash flow was $656 million.

PayPal held $13.7 billion in cash and equivalents as of June 30, with $11.5 billion in debt.

CEO Alex Chriss said PayPal delivered a strong second quarter, achieving another period of profitable growth fueled by momentum across key strategic initiatives—from PayPal and Venmo-branded experiences to PSP and value-added services.

Building on this strength, PayPal raised its full-year guidance for transaction margin dollars and EPS. He expects the company to unlock value through innovations like agentic commerce, ads, stablecoins, and PayPal World.

Outlook

PayPal expects a third-quarter adjusted EPS of $1.18-$1.22, compared to $1.20 for the previous year’s period, and the analyst consensus estimate is $1.20.

PayPal expects a full-year 2025 adjusted EPS of $5.15-$5.30 (prior $4.95-$5.10), compared to $4.65 Y/Y. Current analysts estimate an EPS of $5.09.

PayPal stock declined over 8% year-to-date despite gaining 18% in the last three months.

It grappled with rising interest rates and a slowing consumer spending environment, taking a toll on digital payment volumes. Additionally, PayPal faces intense competition from other fintech companies and platforms like Apple (NASDAQ:AAPL) Apple Pay.

Price Action: At the last check on Tuesday, PayPal stock was down 7.58% at $72.29 premarket.

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Photo via Shutterstock

Gainers

Symbol	Name	Price	Change ($)	Change (%)	Volume
(NYSE:XLK)	SPDR Select Sector Fund – Technology	265.65	1.57	0.59	19.2K
(NYSE:XLRE)	Real Estate Select Sector SPDR Fund (The)	42.15	0.10	0.23	1.1K
(NYSE:XLF)	SPDR Select Sector Fund – Financial	53.16	0.09	0.16	887.9K
(NYSE:XLY)	SPDR Select Sector Fund – Consumer Discretionary	226.35	0.17	0.07	392
(NYSE:XLE)	SPDR Select Sector Fund – Energy Select Sector	88.14	0.05	0.05	10.4K
(NYSE:XLI)	SPDR Select Sector Fund – Industrial	154.53	0.02	0.01	2.3K

Losers

Symbol	Name	Price	Change ($)	Change (%)	Volume
(NYSE:XLV)	SPDR Select Sector Fund – Health Care	134.0228	-1.267	-0.94	78.5K
(NYSE:XLB)	Materials Select Sector SPDR	90.8000	-0.230	-0.26	564
(NYSE:XLU)	SPDR Select Sector Fund – Utilities	83.4500	-0.170	-0.21	1.8K
(NYSE:XLP)	SPDR Select Sector Fund – Consumer Staples	80.6215	-0.038	-0.05	4.7K

Pulled from Benzinga Pro data the above sector movers alert assists traders in understanding macro-level trends and market variations. Traders will look for sector movers providing information on sectors that are over- or under-performing, deriving these results into investing decisions on exchange-traded funds (ETFs) or individual tickers in those sectors.

To read more about sector movers, click here.

The CNN Money Fear and Greed index showed some decline in the overall market sentiment, while the index remained in the “Greed” zone on Monday.

U.S. stocks settled mixed on Monday, with the S&P 500 recording gains as markets reacted to the U.S.-EU trade deal struck over the weekend. Under the new trade agreement, the U.S. will impose a 15% tariff on EU imports, including pharmaceuticals and automobiles. Certain sectors, such as steel, aluminum, and copper, will face steeper tariffs of up to 50%.

All three major indices closed the week higher, with the 30-stock Dow gaining around 1.3% and the tech-heavy Nasdaq adding 1%. The broad market S&P 500 climbed around 1.5% last week.

Tesla Inc. (NASDAQ:TSLA) jumped 3% after the U.S. announced lower-than-expected tariffs on European goods, including autos, and following CEO Elon Musk’s revelation of a $16.5 billion deal with Samsung Electronics to produce next-generation chips.

Most sectors on the S&P 500 closed on a negative note, with real estate, materials and utilities stocks recording the biggest losses on Monday. However, energy and information technology stocks bucked the overall market trend, closing the session higher.

The Dow Jones closed lower by 64 points to 44,837.56 on Monday. The S&P 500 gained 0.02% to 6,389.77, while the Nasdaq Composite gained 0.33% to 21,178.58 during Monday’s session.

Investors are awaiting earnings results from Boeing Co. (NYSE:BA), Procter & Gamble Co. (NYSE:PG) and Starbucks Corp. (NASDAQ:SBUX) today.

What is CNN Business Fear & Greed Index?

At a current reading of 73.3, the index remained in the “Greed” zone on Monday, versus a prior reading of 73.9.

The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.

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Photo courtesy: Shutterstock

With U.S. stock futures trading higher this morning on Tuesday, some of the stocks that may grab investor focus today are as follows:

• Wall Street expects Boeing Co. (NYSE:BA) to report a quarterly loss at 94 cents per share on revenue of $20.20 billion before the opening bell, according to data from Benzinga Pro. Boeing shares gained 0.1% to $236.60 in after-hours trading.
• Analysts are expecting Procter & Gamble Co. (NYSE:PG) to have earned $1.42 per share on revenue of $20.76 billion before the opening bell. Procter & Gamble shares slipped 0.1% to $157.03 in after-hours trading.
• Waste Management, Inc. (NYSE:WM) posted upbeat earnings for the second quarter, but lowered its FY2025 sales guidance. Waste Management shares gained 0.5% to $229.00 in the after-hours trading session.

Check out our premarket coverage here

• Koninklijke Philips NV (NYSE:PHG) posted better-than-expected earnings for the second quarter. Philips posted quarterly adjusted earnings of 41 cents per share, beating market estimates of 29 cents per share. Philips shares fell 1.9% to close at $25.66 on Monday.
• Analysts expect Starbucks Corp. (NASDAQ:SBUX) to post quarterly earnings at 65 cents per share on revenue of $9.29 billion after the closing bell. Starbucks shares slipped 0.1% to $93.60 in after-hours trading.

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Photo via Shutterstock

Parcel delivery company United Parcel Service (NYSE:UPS) could provide a gauge on shipping demand from consumers against the backdrop of tariffs and macroeconomic concerns when the company reports second-quarter financial results Tuesday before market open.

• UPS shares are lagging the market. Check the latest price here.

Here are the earnings estimates, what experts are saying and key items to watch.

Earnings Estimates: Analysts expect UPS to report second-quarter revenue of $20.87 billion, down from $21.82 billion in last year’s second quarter, according to data from Benzinga Pro.

The company beat analyst estimates for revenue in the first quarter, but has missed estimates in nine of the last 10 quarters.

Analysts expect UPS to report second-quarter earnings per share of $1.57, down from $1.79 in last year’s second quarter. The company has beaten analyst estimates for earnings per share in two straight quarters and in six of the last 10 quarters overall.

Read Also: UPS To Cut 20,000 Jobs, Close Facilities As Amazon Shipments Drop Amid Trump Tariffs

What Experts Are Saying: Recent history has proven unkind to United Parcel Services when reporting quarterly financial results, as highlighted by Freedom Capital Markets Chief Global Strategist Jay Woods.

“Earnings season has not been kind to the global shipper. Shares have fallen after 10 of the last 13 quarterly reports with an average one-day loss of -3.6%,” Woods said in a weekly newsletter.

Woods said that even the quarters in which UPS beat estimates saw shares often decline due to disappointing guidance.

“Growth concerns continue. Revenue and net income have declined since 2022, and EPS is still below 2020 levels. Add in profit deterioration due to tariffs, weaker small-business demand, and Amazon share loss and investors have been taking their portfolios allocations to more promising destinations.”

Woods said the “one-year daily chart” for UPS is “showing signs of life” as shares could rally back to $112, the stock’s 200-day moving average. The market expert cautions that UPS still needs to show that the worst is over for the stock.

“Over the long term, shares still have some work to do. Usually for turnarounds to occur it takes multiple quarters of good news and positive price action. We have one good one in the books, let’s see if they can make it two this week when they report.”

UPS focusing on internal efficiencies and cost reductions to boost profitability could be a winning strategy, Bank of America analyst Ken Hoexter said ahead of the company’s quarterly results.

The analyst maintained a Buy rating and $115 price target.

Hoexter said UPS offers exposure to ecommerce growth and trades at attractive valuation multiples. The analyst highlighted the company divesting low-margin operations and reducing overall costs.

The analyst was cautious on the phased removal of revenue from Amazon.com Inc. (NASDAQ:AMZN) and a potential slow macroeconomic recovery.

Here are other recent analyst ratings on UPS and their price targets:

• Citigroup: Maintained Buy rating, raised price target from $122 to $127
• JPMorgan: Maintained Neutral rating, lowered price target from $110 to $107
• UBS: Maintained Buy rating, lowered price target from $128 to $124

Key Items to Watch: After missing analyst estimates for multiple quarters, UPS turned in a strong first-quarter report. Analysts and investors are looking for further momentum in the second quarter.

In the first quarter, UPS saw its domestic segment revenue increase 1.4% year-over-year and its international segment revenue rise 2.7% year-over-year, helping to offset weakness from other segments.

Cost cuts will be a big topic with the company announcing job cuts back in April and a decision to lower Amazon delivery volume.

Investors and analysts will want to see where the company’s growth is going to come from without the Amazon delivery volumes.

All eyes will be on the company’s guidance for the full fiscal year with two quarters completed, which will highlight what investors should expect from the company and the overall sector in the second half of the calendar year.

UPS’s report comes a month after FedEx Corporation (NYSE:FDX) reported quarterly results. FedEx beat analyst estimates for revenue and earnings per share in the quarter, but its guidance disappointed, sending both FedEx and UPS shares down.

Price Action: UPS stock is down 1.4% to $102.09 on Monday versus a 52-week trading range of $90.55 to $145.01. UPS stock is down 17.6% year-to-date, trailing the -11.7% performance of its peer, FedEx, and the 8.9% gain of the S&P 500.

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Photo: Shutterstock

Nike Inc (NYSE:NKE) shares are trading higher Monday after JPMorgan upgraded the stock to Overweight.

What Happened: JPMorgan analyst Matthew Boss upgraded Nike from Neutral to Overweight and raised its price target from $64 to $93, telling clients to “just buy it” in a new note released on Monday.

Following a series of checks, the analyst firm raised its fiscal 2026 and fiscal 2027 estimates, citing five key takeaways.

The JPMorgan analyst said management confirmed that the company remains on track to return to a “healthy and clean” marketplace by the end of the first half of 2026 as Nike continues to take liquidation actions. Nike management is committed to achieving aligned inventory growth relative to sales growth globally, Boss said.

Wholesale orderbooks are starting to build momentum and JPMorgan expects the momentum to continue. The turnaround in orderbook growth is supported by product innovation, which suggests turnaround efforts under CEO Elliot Hill are starting to show up in a meaningful way across the business.

Boss also highlighted a 10-K filing that shows approximately $552 million of sales-related reserves increases in the second half of 2025. Management flagged the year-over-year increase as “abnormal” due to wholesale partner momentum, which would “result in a YOY tailwind to 2H26 revenue growth of at least +350bps by our estimates,” the analyst said.

The JPMorgan analyst also highlighted an operating margin expansion opportunity of more than 500 basis points through fiscal 2028 with an incremental opportunity for 200 to 300 basis points of expansion beyond 2028.

As a result, JPMorgan raised its fiscal 2025 earnings estimates from $1.07 to $1.32 and lifted its 12-month price target to $93.

“NKE is the global athletic market leader with diversification across product categories, geographies, and distribution, and we see the model at an inflection for revenue growth to re-accelerate into 2H26/FY27 following several quarters of franchise product lifecycle management & inventory liquidation headwinds,” the analyst said.

NKE Price Action: Nike shares were up 3.2% at $78.60 at the time of publication Monday, according to Benzinga Pro.

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Photo: Shutterstock.

Gainers

Symbol	Name	Price	Change ($)	Change (%)	Volume
(NYSE:XLE)	SPDR Select Sector Fund – Energy Select Sector	87.85	0.75	0.86	98.2K
(NYSE:XLY)	SPDR Select Sector Fund – Consumer Discretionary	226.13	1.26	0.56	8.2K
(NYSE:XLK)	SPDR Select Sector Fund – Technology	262.99	1.00	0.38	48.3K
(NYSE:XLI)	SPDR Select Sector Fund – Industrial	155.40	0.41	0.26	7.2K
(NYSE:XLC)	The Communication Services Select Sector SPDR Fund	107.85	0.23	0.21	1.7K
(NYSE:XLU)	SPDR Select Sector Fund – Utilities	84.70	0.18	0.21	19.3K
(NYSE:XLRE)	Real Estate Select Sector SPDR Fund (The)	42.85	0.06	0.14	839

Losers

Symbol	Name	Price	Change ($)	Change (%)	Volume
(NYSE:XLP)	SPDR Select Sector Fund – Consumer Staples	81.31	-0.19	-0.24	1.7K
(NYSE:XLV)	SPDR Select Sector Fund – Health Care	136.39	-0.09	-0.07	7.0K
(NYSE:XLB)	Materials Select Sector SPDR	92.32	-0.05	-0.06	1.2K
(NYSE:XLF)	SPDR Select Sector Fund – Financial	53.42	-0.02	-0.04	79.0K

Pulled from Benzinga Pro data the above sector movers alert assists traders in understanding macro-level trends and market variations. Traders will look for sector movers providing information on sectors that are over- or under-performing, deriving these results into investing decisions on exchange-traded funds (ETFs) or individual tickers in those sectors.

To read more about sector movers, click here.

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Greed” zone on Friday.

U.S. stocks settled higher on Friday, with the S&P 500 notching its 14th record close of the year as optimism over corporate earnings and progress on global trade talks provided support for risk assets.

All three major indices closed the week higher, with the 30-stock Dow gaining around 1.3% and the tech-heavy Nasdaq adding 1%. The broad market S&P 500 climbed around 1.5% last week.

Phillips 66 (NYSE:PSX) reported better-than-expected second-quarter financial results. Carter’s, Inc. (NYSE:CRI) shares fell around 20% on Friday after the company reported a second-quarter adjusted EPS miss. Additionally, the company suspended its fiscal 2025 guidance and cited tariff impacts on future earnings.

On the economic data front, U.S. durable goods orders fell 9.3% month-over-month to $311.84 billion in June, following a revised 16.5% gain in May.

Most sectors on the S&P 500 closed on a positive note, with industrials, materials and consumer discretionary stocks recording the biggest gains on Friday. However, energy and communication services stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed higher by 208 points to 44,901.92 on Friday. The S&P 500 gained 0.40% to 6,388.64, while the Nasdaq Composite gained 0.24% to 21,108.32 during Friday’s session.

Investors are awaiting earnings results from Enterprise Products Partners L.P. (NYSE:EPD), Nucor Corp (NYSE:NUE) and Whirlpool Corp (NYSE:WHR) today.

What is CNN Business Fear & Greed Index?

At a current reading of 73.9, the index remained in the “Greed” zone on Friday, versus a prior reading of 74.4.

The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.

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Photo via Shutterstock