Google's explosive ad revenue growth this quarter has reignited optimism across the tech sector, pushing markets higher and boosting hopes that other giants might deliver big beats too. But can Meta and Microsoft follow Google's footsteps, or will the excitement fall short?
Meta’s advertising strength has been steadily recovering, driven by better AI-driven ad targeting and a rebound in digital ad spend. If Meta’s earnings show continued momentum — especially in Reels monetization and cost discipline — it could easily surprise to the upside. However, heavy investments in Reality Labs and a volatile macro backdrop still pose risks that could rattle investors if growth isn't strong enough.
Microsoft, on the other hand, tells a slightly different story. While ads are a smaller slice of Microsoft's business, the focus will be on cloud strength, AI monetization, and business resilience. Azure’s growth trajectory and AI product adoption (especially with OpenAI integration) are the real drivers to watch. If cloud revenue accelerates and margins hold up, Microsoft could extend its rally — but any signs of deceleration may trigger swift profit-taking.
My Take:
Meta will need to prove it can keep up ad growth without burning cash on ambitious moonshot projects.
Microsoft needs to show that AI excitement is turning into real revenue, not just hype.
Both companies have the potential to impress — but after Google's blowout, the bar is now set very high.
It’s not just about beating estimates — it’s about smashing expectations in a market that’s hungry for strong leadership.
In this earnings season, only the strongest will keep flying.
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