Equities Update: Microsoft, Meta, Persimmon, Shell, Bitcoin…

Microsoft

Josh Gilbert, market analyst for eToro says: “Microsoft delivered beats across all key segments in its third quarter fiscal earnings, a result that will not only lift shares but also the broader tech sector and the S&P 500.

“Coming into these earnings, investors had question marks over AI demand after backing away from some data centre projects. Microsoft, though, has quickly quashed those concerns, delivering a massive 35% sales growth in constant currency from Azure, well above expectations of 30% and showing how well they’re monetising AI. Total revenue in the fiscal third quarter jumped 13% to USD$70.1 billion, while adjusted profit was USD$3.46 a share.

“Capex in the quarter jumped to USD$21.4 billion, lower than last quarter – the first time drop quarter on quarter in two years – but capex for the full-year remains unchanged. Importantly, Microsoft expects operating margins to lift slightly year-over-year despite its massive spending, which shows why Microsoft is a money-making machine.

“For investors, this is exactly the type of result you want to see, solid fundamentals with plenty of long-term promise. This result once again shows that Microsoft’s not just riding the AI wave; it’s driving it. OpenAI is firing on all cylinders, Azure growth is powering ahead, and this will only drive top-line growth over the year ahead, showing that its AI investments are already bearing fruit. And with a cash pile of $USD80 billion, it has all the tools to keep investing in what’s next.”

Meta

Josh Gilbert, market analyst for eToro says: “This was a strong report from Meta in the face of a trade war that left question marks over advertising demand. But Meta crushed those concerns with a 16% revenue leap to USD$42.31 billion, topping forecasts of USD$41.4 billion. A looming TikTok ban in the U.S. likely steered advertisers to Meta’s platforms, and its raised revenue guidance signals confidence in sustained ad momentum.

“Despite capex continuing to grow, operating margins jumped to 41%, up from 38% last year. That’s a big relief for investors scarred by 2022’s huge spending, but shrinking margins and revenue. This time, Meta’s AI investments are paying dividends, and its outlay on AI is clearly warranted, helping to drive an ad-pricing gain of 10% through its AI tools.

“With over 3 billion daily active users across its apps, Meta is in a golden position to monetise consumer AI adoption. These numbers show that it’s hitting the nail on the head right now, and its increased capex guidance for the year ahead shows its confidence in its AI efforts.” 
 

Persimmon holds up amid tough conditions

Adam Vettese, market analyst for eToro says: “Persimmon said it is on track to grow sales despite the uncertain macroeconomic backdrop for housebuilders. Potential buyers and movers will be keeping a keen eye on the interest rate trajectory, holding out for as good a deal as they can get. The company’s focus on affordable homes below the national market average, positions it well in a recovering market.

“There are some challenges. Build cost inflation is always lingering in the background, as well as potential regulatory hurdles. Persimmon will have to manage these by keeping costs under control and effective forward planning.

“Shares have shown a modest gain this year, but investors will be hoping that the Bank of England’s trajectory of rate cuts will stimulate the property market to try and propel Persimmon shares higher.”

Bitcoin’s breakout: is it on its way to $100k again?

Simon Peters, crypto analyst at eToro says: “After consolidating around the $95,000 mark for the last week, bitcoin is breaking out today and is targeting the $100,000 level again.

“Currently the price is at $96,400, the highest price since late February, and now less than 15% from the $109,400 all-time high.

“For me, this breakout was on the cards. After a strong rally – which we saw particularly on Tuesday 22nd April amid significantly large inflows into the spot bitcoin ETFs – price typically consolidates, building momentum for another move in the direction of the prevailing trend, in this case higher.

“Focus now turns to the non-farm payrolls and unemployment rate data on Friday, as well as the Fed’s interest rate decision which could provide a further tailwind for the bitcoin price.

“Beyond next week, I think we’ll continue to trend higher. Sentiment is above neutral (according to the fear and greed index) and global liquidity – essentially how much money is available in the global economy and a metric which the bitcoin price closely mirrors – is forecast to increase throughout the year.”

Shell smashes earnings forecasts as fossil fuel production delivers

Mark Crouch, market analyst for eToro says: “Despite sizable losses across the energy sector, Shell smashed analysts’ expectations by over $1bn in Q1 as strict capital discipline, a hallmark of Shell, continues to drive strong shareholder returns and insulate the business from market shocks.

“Falling oil and gas prices, OPEC production increases, and tariff volatility have weighed heavily on producers. But for Shell, whose profits jumped to $5.6bn, strategic execution and a clear identity has delivered in droves. 

“While BP shares have fallen over 25% in 2025, Shell has slipped just 3%, a testament to its more focused approach. Anchored in fossil fuels, particularly liquefied natural gas, Shell has remained stable while peers waver between fossil fuels and renewables. So, while Shell’s limited investment in renewables keeps critics at arm’s length, it hasn’t hampered performance.”