Introduction
Three of the seven American mega-cap companies, known as the Seven Magnificent, are set to report their financial results for the last quarter of 2025 as trading day ends on this Wednesday. These companies include Meta Platforms, Microsoft, and Tesla.
Meta Platforms: Investing Heavily in Artificial Intelligence
Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, is expected to report revenues of $58,590 million. This growth is primarily driven by their investments in artificial intelligence (AI).
Throughout 2025, Meta has focused on strengthening its AI division, including a $14.3 billion investment in Scale AI. This strategy aligns with similar approaches taken by competitors like OpenAI and Alphabet, building significant data centers.
Despite the substantial investments in AI, some investors have expressed concerns. However, Meta CEO Mark Zuckerberg defends these decisions as necessary given the rapid pace of AI development.
According to StreetAccount data, Meta’s capital expenditures related to its data center infrastructure are projected at $21,970 million for the quarter.
Investors will also be keen to hear Zuckerberg’s comments on Reality Labs, the division responsible for developing virtual reality, augmented reality technologies, and portable devices aimed at establishing the so-called metaverse.
Microsoft: Cloud Platform Azure in the Spotlight
Microsoft, a software and cloud services developer, is expected to report revenues of $80,270 million. The market will pay close attention to Azure’s growth rate and other cloud-related businesses.
Microsoft has been constructing data centers equipped with specialized chips capable of running generative AI models. Additionally, the company is funding computing capacity through rental schemes with CoreWeave and Nebius.
Tesla: Slightly Decelerating Revenue Growth
Tesla, led by Elon Musk, is projected to have generated revenues of $24,790 million in the quarter ending December 31, 2025. However, Tesla’s revenue growth has shown a slight deceleration in recent quarters amid increasing competition, especially from Chinese manufacturer BYD.
Analysts anticipate a third consecutive quarterly revenue decline, estimated at 3.6% compared to the previous year’s $25,700 million. For all of 2025, Tesla’s revenues are expected around $95,000 million, marking a 2.8% annual decline from 2024 and the company’s first annual contraction in history.
Capital investment details will also be crucial during the analyst call, as the market seeks more information on the chip technology supporting Tesla’s autonomous driving and robotics plans. During Tesla’s annual shareholder meeting in November, Musk announced collaboration with Samsung and Taiwan Semiconductor Manufacturing (TSMC) for new chip production.
Pre-Earnings Report Stock Movements
Prior to the financial reports’ release, Meta Platforms’ stock decreased by 0.16%, while Microsoft and Tesla’s shares advanced by 0.16% and 0.95%, respectively.
Key Questions and Answers
- What are the Seven Magnificent companies? The Seven Magnificent refers to seven large American companies, including Meta Platforms, Microsoft, and Tesla.
- Why is Meta investing heavily in AI? Meta sees AI investments as crucial given the rapid pace of development in this field.
- What is Microsoft’s cloud platform called? Microsoft’s cloud platform is named Azure.
- Why is Tesla’s revenue growth decelerating? The slowdown is due to increasing competition, particularly from Chinese manufacturer BYD.
- What are Tesla’s plans for chip technology? Tesla is collaborating with Samsung and TSMC to produce new chips supporting autonomous driving and robotics plans.
