Each company in the big technology pack—including Alphabet, Meta, Microsoft, and Amazon—surpassed market expectations with stellar performance in the April-June quarter. Himanshi Lohchab brings out what stood out.
The April-June quarter of 2025 proved stellar for the big technology pack: Alphabet, Meta, Microsoft, and Amazon, with each company surpassing market expectations. Alphabet’s revenue showed that AI-led search is boosting earnings instead of cannibalising. Meta outperformed estimates due to AI-powered ad optimisation and Zuckerberg’s aggressive vision for personal superintelligence.
Microsoft Azure cloud surpassed $75 billion in annual run rate for the first time, zooming the stock to $4 trillion valuation – a feat achieved hitherto by AI hardware titan Nvidia.
Cumulative capital spending across these firms ranges between $331 billion and $377 billion, and consumes up to 40% of sales and 80% of operating cash flow at some companies.
