Goldman Sachs Backs Microsoft and Meta as 'Magnificent 7' Stocks to Buy After Earnings

Goldman Sachs recommends buying Microsoft and Meta Platforms after their earnings releases. Both companies have evolved into major players in AI and cloud computing, with Microsoft backed by OpenAI and integrating AI tools into its products. The firms' strong financial results indicate that their strategic moves are paying off, leading to a "Strong Buy" consensus rating from the Street.

Goldman Sachs has recommended buying shares of Microsoft (MSFT) and Meta Platforms (META) following their recent earnings releases. The recommendations come amidst strong financial results that highlight the companies' strategic moves in AI and cloud computing, leading to a "Strong Buy" consensus rating from the Street.

Microsoft, backed by its partnership with OpenAI, has seen significant growth in its Azure cloud business, driven by the integration of cutting-edge AI models. The company's earnings report for the April-June quarter showed a 34.8% increase in Azure revenue, outpacing the 33% rise in the previous quarter [2]. Despite ongoing negotiations with OpenAI, Microsoft's stock price has risen by more than a fifth this year, reflecting investor confidence in its AI leadership.

Meta Platforms, the parent company of Facebook, has also seen its stock price rise after its earnings report. The company's strong financial performance, particularly in its AI-driven products, has led analysts to raise their price targets. Raymond James Financial, for instance, increased its target price for META from $750.00 to $900.00, indicating a potential upside of 16.11% [4]. The company's earnings per share (EPS) for the second quarter exceeded analysts' expectations, further boosting investor confidence.

Both companies have demonstrated their commitment to AI and cloud computing, positioning themselves as major players in these rapidly evolving sectors. Microsoft's continued investment in AI and its strategic partnership with OpenAI are expected to drive durable consumption growth in the agentic AI era [2]. Meanwhile, Meta Platforms' integration of AI into its products has significantly contributed to its financial performance.

In conclusion, Goldman Sachs' recommendations to buy Microsoft and Meta Platforms are backed by strong financial results and strategic moves in AI and cloud computing. Investors looking for exposure to these sectors may find these stocks attractive opportunities.

References:
[1] https://www.marketscreener.com/news/csx-is-said-to-work-with-goldman-sachs-to-explore-options-bloomberg-news-ce7c5fddd08aff2d
[2] https://ca.news.yahoo.com/microsofts-ai-edge-under-scrutiny-104123644.html
[3] https://www.ttnews.com/articles/csx-talks-goldman-sachs-sale
[4] https://www.marketbeat.com/instant-alerts/meta-platforms-nasdaqmeta-stock-price-expected-to-rise-raymond-james-financial-analyst-says-2025-07-31/