Stocks of Microsoft and Meta Dip in Frankfurt Despite Beating Earnings Expectations: Yahoo Finance

In a surprising turn of events, shares of tech giants Microsoft and Meta (formerly known as Facebook) took a nosedive in Frankfurt despite both companies beating earnings expectations. Investors were left scratching their heads as the stocks plummeted in early trading on Monday.

Microsoft reported a strong quarter, with revenue up 22% to $51.7 billion, surpassing analysts’ estimates of $50.7 billion. The company’s cloud computing division Azure also saw impressive growth, with revenue increasing by 46%. Despite these positive numbers, Microsoft’s shares fell by 3.5% in Frankfurt.

Similarly, Meta exceeded earnings expectations with revenue of $33.7 billion, up 28% from the previous year. The social media giant also reported a 17% increase in daily active users across its platforms. However, Meta’s shares tumbled by 4% in Frankfurt, leaving investors puzzled by the market’s reaction.

Analysts believe that the sell-off may be due to concerns over rising inflation and interest rates, as well as uncertainty surrounding the ongoing conflict between Russia and Ukraine. Additionally, some investors may be wary of the tech sector amid regulatory scrutiny and antitrust investigations.

Despite the drop in share prices, both Microsoft and Meta remain strong players in the tech industry, with solid financial performances and promising growth prospects. It remains to be seen whether the stocks will bounce back in the coming days or if further declines are on the horizon. Investors will be keeping a close eye on market trends and company developments as they navigate this volatile period in the stock market.