Tech Giants Microsoft and Meta Set for Earnings Amid Rising Energy Costs and AI Investments
Microsoft and Meta are scheduled to report quarterly earnings after market close, with analysts expecting strong results despite challenges from higher energy prices linked to the war in Iran. Broader market futures point higher as investors eye capex forecasts for AI buildouts. Uncertainties around oil, helium, and memory prices could influence future guidance.
ndtv.comU.S. stock futures rose on Wednesday morning, signaling a higher open for Wall Street. Microsoft Corp. is expected to report quarterly earnings of $4.06 per share on revenue of $81.36 billion after the closing bell. Meta Platforms Inc. anticipates earnings of $6.74 per share on revenue of $55.47 billion, also due after market close.
These reports arrive amid broader market attention on the technology sector's performance, including capital expenditure plans for artificial intelligence infrastructure.
The war in Iran has driven up oil prices, boosting diesel costs by about 42% since the conflict began, according to U.S. Energy Information Administration data. This surge affects data center operators through higher transportation and manufacturing fees.
Liquified natural gas production in Qatar, which supplied more than one-third of global helium before Iranian attacks damaged a plant in March, remains halted. Sulfur prices have also increased due to concerns over shipments through the Strait of Hormuz, where tanker traffic is low under a fragile ceasefire.
Baker Hughes stated last week that it assumes the strait may not fully reopen for months.
“There's still a great deal of uncertainty regarding, ultimately, the duration and depth of the conflict.”
