Mag 7 earnings recap: Amazon rebounds, Meta's $15B tax charge, Tesla trails Waymo
Oct 31, 2025
Key Points
- Amazon's net profits surge 39% on $180 billion revenue, signaling sustained AI infrastructure spending through AWS is fueling Magnificent 7 momentum.
- Meta's one-time tax charge from the Big Beautiful Bill Act masks operational performance and creates disconnect between business execution and Wall Street optics.
- Tesla beats revenue but misses earnings as Waymo's robotaxi progress raises the competitive bar for autonomous vehicles, Tesla's primary long-term valuation driver.
Summary
Amazon rebounds on infrastructure demand. Net profits surged 39% and revenue rose 13% to $180 billion. AWS spending on AI infrastructure remains strong, positioning Amazon to capture value from the broader compute buildout driving Magnificent 7 momentum.
Meta's tax charge masks operational performance. Meta missed earnings expectations due to a one-time tax charge tied to the Big Beautiful Bill Act. The charge obscures underlying business execution and shifts investor focus to regulatory headwinds rather than operational metrics.
Tesla falls behind Waymo on autonomous vehicles. Tesla beat on revenue but missed on earnings. The company's long-term valuation depends on full self-driving capability, but Waymo's demonstrated progress on robotaxi deployment has raised the competitive bar. Revenue growth alone no longer sustains the bull case if Tesla cannot match Waymo's autonomous vehicle progress.