Amazon, Meta, and Microsoft stocks surge as AI hyperscalers post strong earnings results

Amazon, Meta, and Microsoft stocks surge as AI hyperscalers post strong earnings results

Daniel Howley · Technology Editor

Mon, August 3, 2026 at 7:37 PM GMT+3 2 min read

Hyperscaler stocks rose on Monday as positive earnings results from Microsoft (MSFT) and Amazon (AMZN) last week buoyed investor confidence in the artificial intelligence leaders.

Microsoft and Amazon climbed more than 5%, while Oracle (ORCL) jumped 6%, Meta (META) rose more than 7%, and Google (GOOG, GOOGL) was up more than 5%.

Amazon's stock moves helped push the company's market capitalization past the $3 trillion mark for the first time. Meta, meanwhile, recovered all of its losses after posting second quarter earnings last week that fell flat.

Microsoft's and Amazon's results, however, told a different story.

Microsoft said it saw record cloud revenue, with its Azure business topping $100 billion in annual sales for the first time. Azure revenue grew 43% during the company's fourth quarter, and leadership said it anticipates further acceleration in Q1.

The announcements provided breathing room for hyperscalers, which have faced ongoing questions about their prodigious spending on AI data centers and chips and when they'll see healthy returns on those investments.

The company said it is also revamping its capital expenditures by increasing the useful life of its data centers and officers. CFO Amy Hood said that will move future data center leases from finance leases to operating leases, which aren't included in capital expenditures.

Amazon, meanwhile, said during its Q2 earnings call that both its AI and chip businesses now have annual revenue run rates of $25 billion.

AWS growth hit 36.7% in the quarter, its fastest in 18 quarters, CEO Andy Jassy said in a statement.

Google parent Alphabet's stock has also recovered from its losses following its earnings report late last month, in which it said it will increase its capital expenditures for the year to between $195 billion and $205 billion, up from previous estimates of $180 billion to $190 billion. Analysts had been anticipating $186.4 billion in capital expenditures.

Meta's mixed results last week sent the company's stock sinking about 9%. The social media giant missed earnings estimates due to spending on legal contingencies and severance payments but beat on advertising revenue.

Still, third quarter guidance came up short of Wall Street's anticipated midpoint, and Meta lifted the lower end of its capex expectations, shaking investors' confidence.

Monday's early trading provided a small reprieve for Oracle, which has fallen more than 7% since reporting earnings in early June that fell short of analysts' projections on cloud sales.

Oracle stock is off roughly 30% year to date and more than 40% over the past 12 months due to concerns about its AI spending and the company's heavy reliance on OpenAI for future revenue.

Oracle signed a $300 billion, five-year deal with OpenAI (OPAI.PVT) in 2025 to provide AI infrastructure to the startup.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley.

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