MSFT and META Into Earnings 

If you don’t own Microsoft or Meta, should you even care about their earnings?

I think so.

Even if these aren’t stocks you trade, they’re two of the largest companies in broad market indices. When they report earnings, they can influence the S&P 500, the NASDAQ, ETFs like SPY and QQQ, and even overall market sentiment. Their results also give investors another look at what’s happening with AI spending, cloud computing, digital advertising, and enterprise technology.

That’s one reason I always like paying attention to these earnings, even if I’m not planning to trade the announcement itself. 

Microsoft (MSFT)

The price action on Microsoft has been interesting. For about a year now, shares have NOT been able to move below the April 7, 2025 low or above the July 31, 2025 high. That’s a fairly long time for a stock like Microsoft to stay within those larger boundaries, even though there have been plenty of swings inside the range.

More recently, Microsoft has been recovering higher off the June 25 low, and based on that trajectory, I think it could still have some room to work higher toward the $420 area. At the same time, RSI Power Zones are sitting very close to neutral, around the 50 level between 0 and 100, which tells me neither the bulls nor the bears are really in full control right now.

Because of that, I’d be watching two recent turning points very closely: the July 16 high and the July 9 low. A move above or below either of those levels would be one of the first indications of how Microsoft wants to proceed next. Of course, with earnings just around the corner, that move could easily happen in the form of an overnight gap, so I’d definitely encourage traders to take a little extra caution around the announcement.

Meta (META)

Meta is showing a different type of chart. Heading into earnings, it’s trading inside a fairly wide long-term range. Price hasn’t been able to get above the January 26 high or below the March 27 low, and we’ve also seen two other important turning points in between on April 17 and June 25.

Based on the current direction of price, it looks to me like shares want to work their way back down toward that June 25 area, which gives me an initial downside objective around $555.00. Of course, earnings can always become the catalyst for a gap higher or lower, but if I’m simply looking at the chart as it sits today, that’s where my attention is focused.

Looking Beyond the Headlines

One thing I think newer traders sometimes miss is that institutional investors are listening for much more than whether a company beats earnings expectations.

They’re paying attention to revenue growth, profit margins, future guidance, capital spending, and what management has to say about where business is heading from here. That’s why you’ll occasionally see a company report numbers that look strong on the surface, yet the stock sells off anyway. Other times, the numbers may seem mixed, but the market rallies because investors like what they hear about the future.

That’s another reason earnings season can be so educational. These reports often tell us something about much more than just one company. They can offer clues about the health of entire industries, from AI infrastructure and cloud computing to semiconductors, enterprise software, and digital advertising.

Stay Focused on the Chart

Even though earnings can fuel movement, especially in two widely watched stocks like Microsoft and Meta, the underlying chart principles are still what I want to dial in on and prepare with.

Price.

Time.

Momentum.

Those are the things I’ll continue watching before earnings, and they’re the same things I’ll be watching after the headlines are over. The news may create the catalyst, but it’s the chart that helps me put that movement into context and decide what, if anything, I want to do next.

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