Meta's Dip May Be Overdone as Amazon Soars and Apple Sells Off

Meta Platforms (NASDAQ:META) shares are down after missing earnings per share (EPS) estimates, but analysts say the dip may be an overreaction. The company reported $60.80 billion in revenue, a 27.96% increase from last year.

However, Meta's EPS fell short of expectations due to $2.4 billion in legal charges and $1.18 billion in severance costs related to a 8,000-role cut. Despite this, the company's ad impressions rose 14%, and price per ad increased by 12%.

Amazon (NASDAQ:AMZN) shares rallied after delivering its fastest AWS growth in 18 quarters, with a 37% increase to $42.23 billion. The company also reported a $53.4 billion non-operating gain related to Anthropic. Analysts say Amazon's capex intensity is justified by the operating leverage into 2027.

Apple (NASDAQ:AAPL) shares fell 9.14% after beating earnings estimates due to tariff refunds, which added roughly 2 points of gross margin and $0.11 to EPS as a one-time benefit. Analysts say Apple's multiple leaves little room for a China stumble, but the market is signaling that tariff refunds flattered the beat.