Hi {{first_name}} ,

The Fed held rates steady. Iran launched a surprise attack on US troops in the Middle East and the US struck back within hours AGAIN. And in the middle of all that chaos, 2 of the biggest names on my watchlist reported earnings. Microsoft, Meta.

At the same time SP500 fell 1.5% and NASDAQ fell over 2%.

Let me walk you through what actually happened.

Microsoft posted $4.74 in earnings per share against the $4.24 expected. Revenue came in at $90B, up about 18% from a year ago. That is a real beat.

The engine behind it was the cloud business. Azure grew 43% and crossed the $100B mark. Intelligent Cloud revenue alone hit $39.3B, up 32%. This also marks Microsoft's fifth straight quarter of beating expectations.

Part of that earnings beat came from a $3.2B gain tied to Microsoft's investment in Anthropic. Nice investment there

The stock jumped about 8% in extended trading after the print.

Pete's Take 👇
This is what I like to see. The AI spending story is not just a story anymore, it is showing up in actual revenue and actual profit. Microsoft is proving the cloud investment is paying for itself.

Meta's revenue jumped 28% year on year to $60.8B, beating what analysts expected. Sounds great so far.

But profit told a different story. Earnings per share came in at $6.18, well below the $7.22 the Street wanted. Net income actually fell 14% to $15.8B. The reason was a mix of legal charges and severance costs from the layoffs Meta made back in May.

Meta also raised its 2026 spending plan for AI infrastructure to a range of $130B to $145B, and gave a Q3 forecast that was below what the market hoped for.

Shares slipped 8% after the report as investors focused on that profit miss.

Pete's Take 👇
Meta is growing the top of the business just fine. The problem is cost management. Legal costs, severance and AI spending are all eating into profit at the same time. Not a reason to panic on Meta, but a good reminder that revenue growth alone does not tell the whole story. Always check what happens after the top line.

🎯Pete's Investment Takeaway

Wild 24 hours. A Fed hold, fresh conflict in the Middle East, and major earnings reports all landed on top of each other.

I’m happy with both earnings (even though I can be happier with Meta). And other investment that I am focusing on is Real Estate or in Singapore, we call it Property!

And we just got a major change to the Property Rules in Singapore and I will discuss it tonight with my group of property investors and you are welcome to join us too!

With the slew of latest property regulation changes, many property sellers and buyers are wondering what will be the impact and most importantly how does it affect their property plans.

So what does this mean for YOUR plans? Let's talk it through. 👇

🔴 SG Property LIVE (open to all)

📅 Thu 30 Jul, 9pm

Bring your property questions and let's make the right move together. 💪

▶️ Register (only 300 seats):

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.