The first-quarter earnings season is underway, drawing attention to the “Magnificent 7” companies: Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG, GOOGL), Amazon (AMZN), NVIDIA (NVDA), Tesla (TSLA), and Meta Platforms (META). In 2025, this group has experienced a rocky start, highlighted by a recently released lower-cost artificial intelligence (AI) model from Chinese startup DeepSeek, which has sparked concerns regarding competition and spending in the AI sector among U.S. tech firms. Additionally, former President Trump’s tariffs have added more pressure on these companies.

Analysts anticipate that the earnings of the “Mag 7” for this quarter will rise by 19.6% compared to last year, driven by a 10.9% increase in revenues. These projections are a mix of actual results from Alphabet and Tesla, along with forecasts for the other five companies, four of which are set to report this week. Microsoft and Meta Platforms will announce their earnings after the market closes on April 30, while Apple and Amazon will follow on May 1. NVIDIA is expected to report later next month.

Performance Overview

Among the four Mag 7 members reporting this week, Microsoft and Meta have fared better this year, with stock losses of 6.5% and 6.3%, respectively. In contrast, Amazon and Apple have seen declines of 13.8% and 16.4%, respectively.

Microsoft: Financial Snapshot

Microsoft reports an earnings ESP of -0.51% and holds a Zacks Rank of #3 (Hold). The company has not seen any revisions to its earnings estimates in the past 30 days for the third quarter of fiscal 2025. Its earnings surprise, averaged over the last four quarters, is a notable 4.34%. The Zacks Consensus Estimate predicts an earnings growth of 8.8% and revenue growth of 10.5% year-over-year.

Microsoft seems well-positioned compared to other tech companies, citing minimal risk exposure to retail and advertising spending, as well as cyclical hardware and supply chain issues. The company has invested billions into expanding its global data center network to support the development of advanced AI capabilities. Although Azure’s growth may continue to slow, Microsoft anticipates its AI business will achieve $13 billion in annual sales, projecting revenues of $67.7–$68.7 billion for the fiscal third quarter.

Meta Platforms: Recent Trends

Meta Platforms has an earnings ESP of +3.88% and a Zacks Rank of #3. The company experienced a minor earnings estimate revision of a penny over the past week. The Zacks Consensus Estimate forecasts a significant year-over-year earnings growth of 10.6%, alongside a revenue increase of 13.1%. Historically, Meta has delivered an average earnings surprise of 13.77% in the last four quarters.

Despite concerns over tariffs potentially affecting profitability—given Meta’s reliance on international advertisers, especially from China—its ongoing investments in AI and a robust user base across platforms like Facebook, Instagram, Threads, Reels, and WhatsApp should continue to support growth. Revenue for the first quarter is projected to range between $39.5 billion and $41.8 billion, reflecting year-over-year growth of 8% to 15%.

Apple’s Position

Apple holds an earnings ESP of -0.85% and a Zacks Rank of #3. The company has seen a slight negative revision of earnings estimates over the last month for the fiscal second quarter of 2025. Historically, Apple has maintained a solid earnings surprise track, averaging 4.39% over the last four quarters. The Zacks Consensus Estimate anticipates a modest 4.58% growth in earnings and a 3.09% increase in revenues.

During its last earnings call, Apple provided cautious guidance, citing projected “low to mid-single digit” sales growth. With approximately 90% of its iPhones manufactured in China—accounting for 17% of its revenues in 2024—Apple is more exposed to tariffs compared to other firms. However, its strong service revenues are expected to help mitigate any declines in iPhone sales amid ongoing trade tensions and challenges related to AI development.

Amazon’s Strategy

Amazon has an earnings ESP of -2.57% and a Zacks Rank of #3. The company has encountered a slight negative revision of earnings estimates over the past week. The Zacks Consensus Estimate projects a year-over-year earnings increase of 19.47% and significant revenue growth of 7.85% for the upcoming quarter. Amazon has shown a strong earnings surprise history, averaging 25.27% over the last four quarters.

The retail giant maintains its dominance in e-commerce while expanding into cloud computing and advertising markets. Revenue projections for the first quarter of 2025 range from $151 billion to $155 billion. Like its tech competitors, Amazon is increasing investments in data centers and AI technology, though it faces tariff risks due to reliance on Chinese manufacturing, with about 30% of goods sold on its platform sourced from China.

Investing Strategy: ETFs to Consider

Given the current earnings landscape, investors may want to explore opportunities in these stocks through exchange-traded funds (ETFs). Below are some ETFs that provide significant exposure to the Magnificent Seven.

Roundhill Magnificent Seven ETF (MAGS): This ETF offers investors equal-weight exposure to the Magnificent 7 companies, allowing for a balanced investment approach.