Tech Giants Propel Market Open Amidst Earnings Surge and Regulatory Watch

By / / Breaking News

Key Takeaways

  • Technology stocks, notably Meta (META) and Microsoft (MSFT), led the US market open with significant gains following strong earnings reports, pushing Meta's target price to $900.
  • A UK regulator has identified Microsoft (MSFT) and Amazon (AMZN) as hindering cloud competition, potentially signaling increased regulatory scrutiny for their dominant cloud services.
  • Cigna (CI) surpassed Q2 revenue and adjusted EPS estimates, reporting $67.13 billion in adjusted revenue and adjusted EPS of $7.20, while reaffirming its full-year adjusted EPS forecast.
  • Biogen (BIIB) raised its full-year adjusted EPS outlook to $15.50-$16, and Shein's Q1 revenue neared $10 billion prior to new tariffs.
  • PG&E (PCG) missed Q2 revenue and adjusted EPS estimates, reporting $5.9 billion in revenue and adjusted EPS of $0.31.

Market Overview

The US market opened with a strong performance from the technology sector, driven by impressive post-earnings surges from Meta Platforms (META) and Microsoft (MSFT). Investors are now looking ahead to further earnings reports and the upcoming release of the Personal Consumption Expenditures (PCE) data, a key inflation indicator.

Tech Sector Highlights

Meta Platforms (META) saw its stock climb after reporting strong earnings, prompting Bernstein to significantly boost its target price for the social media giant to $900 from $775. This positive analyst sentiment underscores confidence in Meta's financial trajectory.

Meanwhile, Microsoft (MSFT) and Amazon (AMZN) are facing increased scrutiny from the UK regulator, which has found that their cloud services are hurting competition in the cloud computing market. This development could lead to potential regulatory challenges for the tech behemoths as authorities aim to ensure a level playing field.

Healthcare Earnings

Cigna (CI) delivered a robust second-quarter performance, reporting adjusted earnings per share (EPS) of $7.20, exceeding the estimated $7.15. The healthcare provider's adjusted revenue also surpassed expectations, reaching $67.13 billion against an estimate of $62.46 billion. Cigna also reaffirmed its 2025 adjusted EPS forecast of at least $29.60 and provided a 2025 Cigna Healthcare Medical Care Ratio outlook of 83.2% – 84.2%. The company's Q2 net income stood at $1.532 billion, with unadjusted EPS at $5.71.

In other healthcare news, Biogen (BIIB) revised its full-year adjusted EPS outlook upwards, now expecting between $15.50 to $16, an increase from its previous forecast of $14.50 to $15.50.

Utilities and Retail

Utility company PG&E (PCG) reported its Q2 2025 earnings, with adjusted EPS coming in at $0.31, slightly below the estimated $0.33. The company's revenue also missed projections, reaching $5.9 billion against an estimate of $6.37 billion. PG&E anticipates its full-year EPS to be between $1.26 and $1.32.

In the retail sector, fast-fashion giant Shein reportedly neared $10 billion in revenue during the first quarter, prior to the impact of new tariffs. This figure highlights the significant scale and rapid growth of the online retailer.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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