By Zacks Equity Research
Publication Date: 2026-02-09 10:33:00
Chicago, IL – February 9, 2026 – Today, Zacks Investment Ideas feature highlights Microsoft MSFT, Alphabet GOOGL and Amazon AMZN.
Alphabet & Microsoft: Billion-Dollar AI Bettors
The 2025 Q4 earnings season continues to move at a rapid pace, with a fair chunk of S&P 500 companies already delivering their results. Among the bunch have been most of the Mag 7 members, including Microsoft and Alphabet, both of which are deeply involved in the broader AI frenzy.
Both stocks have seen weak reactions post-earnings so far, though the reaction to MSFT has been considerably more negative. Extremely high capital expenditures (CapEx) have been a major driver of sentiment, with both investing heavily in their futures.
Microsoft Earnings
Microsoft posted a double-beat relative to our consensus expectations, continuing its established history of exceeding expectations. Adjusted EPS of $4.14 grew by 24% year-over-year, whereas sales of $81.3 billion grew 17% from the…