The Daily Breakdown looks at Meta’s record win streak, as the social media giant defies the bearish trend of other Magnificent 7 stocks.
Thursday’s TLDR
Meta’s record win streak
GOOGL dips to possible support
Chip stocks catch a boost
What’s happening?
We’ve had earnings from five of the Magnificent 7 so far this quarter and that figure will grow to six when Amazon reports earnings tonight. Then we’ll only be waiting on Nvidia, which won’t report for a few more weeks.
So going back to the five Mag7 names that have reported, four of them are lower — Microsoft, Tesla, Apple, and Alphabet — but one is higher in spectacular fashion: Meta.
Meta stock is in the midst of a 13-session win streak. While shares may only be up about 4.2% since it reported earnings last Wednesday, Meta has gained over 15% since its winning streak began on January 17th.
It’s Meta’s longest win streak ever — (and shoutout to our eToro’s Josh Gilbert, an investment analyst based in Sydney, Australia, for flagging Meta’s win streak the other day).
By far, it’s the best-performing Magnificent 7 stock this year, up 20.4%. The next-best performer is Amazon, up 7.7%.
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The setup — Alphabet
Unfortunately for Alphabet, the earnings reaction wasn’t so good. Shares fell over 7% yesterday after the firm delivered an earnings beat but missed slightly on revenue expectations and amid slightly weaker-than-expected results in its cloud business.
When you comb through the report, the numbers were actually pretty good. But remember, GOOGL was up more than 20% from when it reported earnings just a few months ago, while shares were up 45% from a year ago.
In other words, the bar is raised higher when a stock rallies significantly into a key event. Now, we have to see where support comes into play. Right now, that’s the 50-day moving average:
In the short term, bulls want to see Alphabet hold the $188 to $190 area as support. Not only does this include the 50-day moving average, but this area has been acting as support throughout 2025.
If it holds, a larger rebound could ensue. If it fails, we could see more bearish momentum in the short term.
When it comes to the fundamentals, analysts expect earnings growth of about 14% in 2025, while the stock trades at 21 times this year’s earnings estimates — which is the lowest forward P/E valuation of the Magnificent 7 holdings.
Options
Buying calls or call spreads may be one way to take advantage of a pullback. For call buyers, it may be advantageous to have adequate time until the option’s expiration.
For those that aren’t feeling so bullish or who are looking for a deeper pullback, puts or put spreads could be one way to take advantage.
To learn more about options, consider visiting the eToro Academy.
What Wall Street is watching
AMD – Like Alphabet, Advanced Micro Devices did not have a very good day on Wednesday, falling over 6%. That’s despite the firm beating on revenue expectations and reporting record revenue results for the fourth quarter. However, investors worry that AMD will not ride the AI growth train like other chip stocks. Check out AMD’s chart.
AMGN – Shares of Amgen popped on Wednesday and hit a multi-month high after reporting better-than-expected earnings. The firm reported earnings of $5.31 a share on revenue of $9.1 billion, beating expectations of $5.08 a share and $8.9 billion, respectively.
AVGO – Chip stocks like Broadcom and Nvidia caught a nice boost on Wednesday after Alphabet’s capital expenditures (CapEx) outlook for 2025 was higher than expected. So was Meta’s outlook when it was given last week. A bulk of mega-cap tech CapEx is going into building out their AI infrastructures, which is viewed as promising news for chip stocks.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.
