Hot Microsoft and a soggy Apple

Investors are breathing a bit easier this week. Phew.

Markets have generally been up and positive. On Thursday, the S&P 500 had its eighth consecutive positive day, propelled by positive reports from Microsoft and Meta, as the big tech giants announced their results for January - March. Microsoft took the class swot award and posted record revenue, fuelled by its cloud computing business, Azure. For a moment, Microsoft inched ahead of Apple to become the world’s most valuable company.

Although earnings were strong for Meta and Microsoft, Amazon disappointed and Apple wasn’t too crunchy - CEO Tim Cook said he expected tariffs to add $900 million to its costs for the next three months and ongoing AI delays tempered investor enthusiasm.

No-one quite knows what to expect from tariffs. What will be exempt. How long for? And so, where might stuff be made? Dunno, dunno and dunno. Last month, Apple chartered tariff-dodging jets to airlift about $2 billion worth of iPhones from India to the States, and the reported plan for Q2 is that India will make more iPhones and Vietnam will make more iPads and Macs (a shift away from China). I would really not like to be the Chief Operating Officer of Apple. It’s up there next to Prime Minister in my list of worst jobs in the world. And GP receptionist and Donald Trump’s physiotherapist. Eeeeuuugh. But I digress.

If you feel like you're a bit late to the party and want to get the background on these leading tech stocks collectively known as the Magnificent Seven, this article will share their story, growth and consider their prospects.

I had lunch with the CEO of a big platform yesterday. He confirmed reports from other platforms that the recent market chaos had sparked record trading levels – and it was roughly two-thirds Buys and one-third Sells, with the tech firms featuring large. So, despite all the hefty valuations and all the challenges and headwinds and will-he-won’t-he, people are still backing the tech stocks. And this week showed that these firms are still making a LOT of money! Despite the title of this blog, it’s worth reminding readers that Apple posted better than expected earnings and iPhone sales held up well – the mweh share price reaction is not about earnings, but concerns for the future.

Whatever your take on the tech outlook, don’t get greedy though people, or pile in too hard on one sector. Diversification still works best over the long-term. Boring, but true.

Finally this week, I wanted to highlight something for our older readers or for those helping their parents. This feature piece has 10 things on a Later Life Financial Planning list, and will really help get your affairs into shape with these practical tips and ideas. Worth a read.

That’s it for this week. Have a brilliant long weekend, my friends. I'm heading to a party tonight with my uni friends. A little get together with about 50 people I met one week after my 18th birthday when "Ride On Time" topped the charts, Maggie was still PM and the first Gulf War was brewing. We will drink like we're still 18 and be very silly. I am already anticipating the headache tomorrow…

Holly