Physicists Actually Made The 'World's Smallest Violin' For a Serious Reason
Physicists at Loughborough University in the UK deployed the latest in nanolithography techniques – etching patterns into materials at the smallest possible scales – to create a violin drawing that's just 13 microns wide. That's thinner than a human hair, which are typically up to 180 microns in diameter.
This is essentially just a drawing rather than an instrument, and you would have to be a tiny tardigrade to play it anyway, but the novel creation demonstrates ways in which the next generation of electronic devices could be made.
"Once we understand how materials behave, we can start applying that knowledge to develop new technologies, whether it's improving computing efficiency or finding new ways to harvest energy," says experimental physicist Kelly Morrison, from Loughborough University.
"But first, we need to understand the fundamental science, and this system enables us to do just that."
The violin was made through a four-step process. First, an incredibly fine, heated needle was used to draw the violin pattern into a chip coated with a polymer. Second, the part of the polymer that's been written on is dissolved.
The third stage is filling the newly formed cavity in the polymer with platinum, which is the material the violin is actually made from. The fourth and final step is removing the chip and the rest of the polymer, leaving behind the violin.
It's not unlike the process of screen printing, where ink is pressed through a stencil to create a picture on the underlying layer – though in this case the scale is much, much smaller, and the equipment is much, much more sophisticated.
This is a seriously delicate process, and requires equipment that takes up a whole room. The setup includes a sculpting machine called a NanoFrazor, which is enclosed in a glove box to keep out dust and other particles.
"I'm really excited about the level of control and possibilities we have with the setup," says Morrison. "I'm looking forward to seeing what I can achieve – but also what everyone else can do with the system."
More ambitious research is now planned for the NanoFrazor and its connected software, work that will involve different materials and different methods of customizing them at the smallest possible scales. And any time that improvements in miniaturization are made, they have implications for technologies including computing.
For now, this is certainly the smallest violin that we've ever come across – continuing the tradition of the phrase thought to have first been popularized by a mention in the TV series M*A*S*H back in the 1970s.
"Though creating the world's smallest violin may seem like fun and games, a lot of what we've learned in the process has actually laid the groundwork for the research we're now undertaking," says Morrison.
"Our nanolithography system allows us to design experiments that probe materials in different ways – using light, magnetism, or electricity – and observe their responses."
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CNBC
17 minutes ago
- CNBC
What will it take for Apple to get back in Wall Street's favor? Here are 3 things
It's going to take a lot from Apple earnings to get the iPhone maker out of the penalty box. In fact, Jim Cramer said earlier this week that "Apple's on the red-hot griddle," among the Big Tech names slated to post quarterly results over the next two days. Fellow Club holdings Microsoft and Meta Platforms report Wednesday evening, while Amazon joins Apple after Thursday's close. According to data provider LSEG, Apple's earnings per share (EPS) are expected to have advanced 2% year over year to $1.43 in its fiscal 2025 third quarter, ended in June. Revenue for the quarter, per LSEG, is seen rising 4% to $89.54 billion. Through its financials and post-earnings commentary, Apple needs to find a way to flip the script on investor concerns — from a lagging artificial intelligence strategy to tariffs to legal hurdles — that have caused its awful stock performance in 2025. Shares have lost more than 16% year to date versus the S & P 500 's more than 8% advance. The stock's fall from grace has been swift and looks even worse when compared to its nearly 31% gain last year following a nearly 50% rise in 2023. Apple headwind trifecta The staggered rollout of the company's AI features, Apple Intelligence, has pushed out expectations for a much-needed iPhone upgrade cycle. Apple is flailing on AI while its tech peers are driving forward. There have been reports that Apple might be looking to buy an AI company, maybe even Perplexity. Trade uncertainties linger as President Donald Trump rushes to cut as many deals before his self-imposed "reciprocal" tariff deadline on Friday. China and India are the big ones for Apple. While most iPhone production remains in China, Apple has been moving more and more manufacturing to India. On the last earnings call , CEO Tim Cook said the company plans to source U.S.-sold iPhones from India and the rest of the world's supply from China. Apple faces significant legal challenges, including the Justice Department's antitrust case against Alphabet , which threatens billions of dollars in payments for Google search priority. Long-running battles with Fortnite maker Epic Games have loosened Apple's grip on app commissions. Apple said these changes would cost the company "substantial sums. " "Apple also needs to get past key overhangs — namely concerns around Services growth (answered at earnings), the implementation of Section 232 tariffs (imminent?), and the upcoming DOJ v. GOOGL remedy ruling ("by August") – before we'd feel more confident that Apple can sustainably break out of its $195- $215 trading range," Morgan Stanley said in a July 21 note. Shares on Wednesday closed down more than 1% to just over $208 apiece. We have our hold-equivalent 2 rating on the stock and a $240 price target. So, what will it take to get Apple back in favor with Wall Street? Here are three things we would like to see in the company's quarter numbers and hear on the earnings conference call. Positive trade news : Any commentary from management on plans to further and more aggressively diversify its supply chain out of China will be key, as the White House demands that device manufacturing move to the U.S. Apple is in a difficult spot. There's still a lot of uncertainty regarding Trump's trade tariff policy. Back in May, assuming tariff levels at the time, Cook predicted $900 million in added costs in the June quarter. He would not go further than that. Tons have happened since then, including U.S. negotiators saying Tuesday that trade talks with China this week ended with no tariff truce. On Wednesday, Trump said India would have 25% tariffs if no deal is reached before Friday. Let's just hope that management can provide some more clarity on the matter during Thursday evening's post-earnings conference call. Better-than-feared services revenue : This business, which makes money from the App Store, iCloud storage, Apple TV+, and more, has become a crucial part of Apple's profitability. Services have been a huge growth driver in recent years, helping offset weakness in iPhone sales. That's because the services unit collects revenue from paid subscriptions, licensing deals — like those from Google — and other recurring income streams. But this crown jewel is at risk, in part, due to the ongoing legal cases mentioned above. Investors may see the impact of the Epic Games battle during Thursday's release. To be sure, we won't get any clarity on the knock-on effects from Google's legal battle until August, though. AAPL YTD mountain Apple (AAPL) year-to-date performance On Monday, Bank of America described Apple's App Store as "a cornerstone of its Services revenue and profits" and that any rule changes "could erode this lucrative business." "The concern is that new laws and court decisions are forcing Apple to open up its walled garden, which in turn may reduce the 30% commission 'app tax' Apple collects on many transactions," the analysts added. "Since App Store fees are high-margin, any loss of this revenue disproportionately would hurt Apple's profits." It doesn't help that Apple's services business missed analysts' revenue estimates last quarter, too. Any upbeat commentary management can give Wall Street on this segment — and when to expect a reacceleration — would be welcomed news. Generative AI clarity : We're unlikely to see any product announcements, but increased AI investment would help assuage concerns. Not only has Apple's release of AI features been lackluster and delayed, but the company has been losing its top talent, too. Four AI researchers at Apple have left in the past month for Meta's superintelligence team, Bloomberg reported Tuesday. Material investments in AI would help Apple catch up to its Big Tech counterparts. Better AI offerings will not only increase device sales but can boost services revenues, depending on how they decide to monetize the features. Remember, Apple has rarely been first to market with its products. It does, however, continue to release the best ones. Apple didn't invent the smartphone, but the iPhone is now the company's biggest money maker. Apple also wasn't the first to make headphones, but AirPods have been an enormous commercial success. Bottom line As Jim phrased it in late June , the firm makes "the greatest product in the world," and that's exactly why the Club stands by its "own, don't trade" thesis on shares ahead of the quarter. "As long as they have the greatest product in the world, I'm going to support that company," he added. On July 11 , during the Club's third annual meeting, Jim said he's still backing Cook despite calls for the CEO to resign. "He's made us a lot of money. He gets the benefit of the doubt." (Jim Cramer's Charitable Trust is long AAPL, AMZN, META, MSFT. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Yahoo
an hour ago
- Yahoo
Stock market today: Nasdaq, S&P 500 jump as Big Tech earnings, trade deals lift spirits
The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) surged on Thursday, setting sights on fresh record stock highs after strong Meta (META) and Microsoft (MSFT) earnings boosted faith in a payoff from Big Tech's massive AI investments. The Nasdaq climbed roughly 1.3%, while the S&P 500 rose 0.8%. The Dow Jones Industrial Average (^DJI) lagged, up less than 0.1%. Meta shares shot up 12% in early trading, as investors welcomed its earnings beat and stronger-than-expected guidance even as it ramps up its AI spending spree. Microsoft stock jumped over 8% after its impressive results, on track to make the company the second in the world to reach a $4 trillion market valuation. Markets are now looking to after-hours results from their "Magnificent Seven" peers Apple (AAPL) and Amazon (AMZN) for reasons to keep the rally going. Meanwhile, the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) released on Thursday morning showed price increases accelerated in June as inflation remained above the Fed's 2% target. The release comes after the Fed held interest rates steady following its two-day policy meeting on Wednesday, with two Fed governors dissenting. Following the decision, Fed Chair Jerome Powell stressed "no decisions" had been made about a September rate cut, undercutting President Trump's claim he had heard a cut was coming at policymakers' next meeting. Bets on a September cut fell below 40% on Thursday, according to the CME Group, down from about 60% before the meeting. Also, a flurry of trade deals eased trade-war fears on the eve of President Trump's deadline on Friday. A pact with South Korea announced late Wednesday sets a 15% tariff rate on its imports. US exports will face zero duties in return, and Seoul has agreed to make $350 billion in US investment and pledged to buy US energy products, Trump wrote in a social media post. S&P 500, Nasdaq surge at the open The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) surged on Thursday, on track for fresh record highs after strong Meta (META) and Microsoft (MSFT) earnings fueled a spike in tech stocks. The Nasdaq climbed roughly 1.3%, while the S&P 500 rose 0.8%. The Dow Jones Industrial Average (^DJI) lagged, up less than 0.1%. Microsoft set to join $4T market cap club, Meta stock surges in post-earnings rally Microsoft (MSFT) and Meta (META) stocks ripped higher in premarket trading as investors continued to bid up shares following the tech giants' earnings reports. Combined, the two stocks have added about half a trillion dollars in market value since Wednesday's close. If gains hold, Microsoft is set to join Nvidia (NVDA) in the $4 trillion market capitalization club when the market opens. Its market cap as of Wednesday stood at $3.81 trillion, and the stock has gained nearly 9% in premarket trading. Meta stock surged 11% ahead of the opening bell. Both Meta and Microsoft reported strong revenue growth that outweighed investors' concerns about spending on artificial intelligence. 'The stock moves make sense — the results are that good,' D.A. Davidson head of technology research Gil Luria told Yahoo Finance following Meta's and Microsoft's earnings. 'Meta is gaining significant share in the digital advertising market, … and therefore investors have patience for the capex guidance they're providing.' Fed's preferred inflation gauge shows price increases accelerated in June amid tariff uncertainty The latest reading of the Federal Reserve's preferred inflation gauge showed price increases accelerated in June as inflation remained above the Fed's 2% target. Yahoo Finance's Josh Schafer reports: Read more here. Roblox stock soars as daily active users surpass 100 million Roblox's (RBLX) stock rocketed 20% higher in premarket trading after reporting record daily users and raising its third quarter forecast for bookings. Daily active users rose 41% in the second quarter to cross 111 million, the company reported on Thursday. Roblox also raised its forecast for annual bookings in the third quarter to $1.59 billion to $1.64 billion. Bookings for the second quarter came in at $1.44 billion, beating market estimates of $1.24 billion. Reuters reports that the company has been investing in search and discovery features that allow greater visibility for viral games like "Grow a Garden." Roblox also aims to diversify its revenue beyond gaming by turning the platform into a hub for socializing, commerce, and advertising. The platform saw a boost in engagement during the quarter, with engaged hours up 58% to 27.4 billion. Read more here. What's in the US-EU trade deal depends on who is doing the talking President Trump and European Commission President Ursula von der Leyen shook hands Sunday over a trade agreement. The White House did a victory lap, but days later, there are still plenty of disagreements about exactly what is in the pact. Yahoo Finance's Ben Werschkul reports: Read more here. A quirk in the Fed's calendar puts extra pressure on the Sept. meeting Yahoo Finance's Hamza Shaban takes a look at the Federal Reserve's next move in today's Morning Brief: Read more here on how a long wait could result in a different outlook. Good morning. Here's what's happening today. Economic data: Challenger jobs cuts (July); Personal income & spending (June); Core PCE price index; Employment cost index (second quarter); Initial jobless claims (week ending July 26) Earnings: Apple (AAPL), Amazon (AMZN), Bristol Myers Squibb (BMY), Cigna (CI), Coinbase (COIN), CVS Health (CVS), Mastercard (MA), Norwegian Cruise Line (NCLH), Reddit (RDDT), Roblox (RBLX), Roku (ROKU), Strategy (MSTR) Here are some of the biggest stories you may have missed overnight and early this morning: Trump knocks Canada as countries rush to strike trade deals Trump tariffs face another legal test on eve of deadline Apple faces 2 major threats ahead of earnings What's in the US-EU trade deal? It depends on who's talking. Fed calendar quirk raises the stakes for its Sept. meeting Meta stock surges after earnings beat, guidance surprise Microsoft on track for $4 trillion market cap after earnings beat Arm stock falls as chip ambitions shake investor confidence Trending tickers: ARM, CVS and Confluent Here are some top stocks trending on Yahoo Finance in premarket trading: Arm (ARM) stock fell 6% on Thursday before the bell following the announcement of the chip tech provider's plan to invest in its own chip development, which would bite into future profits, disappointed investors. CVS (CVS) stock jumped 7% in premarket on Thursday after the company beat Wall Street estimates for second-quarter profit. Confluent Inc (CFLT) stock rose over 20% premarket following the company's positive earnings report. The data streaming platform reported a 21% growth in subscription revenue and a 28% growth in Confluent Cloud revenue for Q2 2025. Carvana posts higher quarterly profit on record car sales Shares in Carvana (CVNA) surged over 15% in premarket trading after the online used-car seller defied expectations with strong second quarter results and outlook. Bloomberg reports: Read more here. EBay stock rises as resilient consumers fuel strong sales forecast EBay (EBAY) stock jumped on Thursday before the bell after the e-commerce company forecasted sales that topped analysts' estimates, suggesting optimism for continued consumer resilience at a time of shifting US tariff proposals. Bloomberg News reports: Read more here. AB InBev shares slide on concern over sales volumes Beer giant Anheuser-Busch InBev (BUD) stock slumped more than 9% before the bell on Thursday after reporting that its second quarter sales volumes fell more than expected due to weak demand in Brazil and China, adding to investor worries over industry growth and hitting its shares. Reuters reports: Read more here. Qualcomm on the move lower Qualcomm's (QCOM) not playing in the big-cap tech stock euphoria this morning led by Microsoft (MSFT) and Meta (META) post earnings. Its shares are down 6% premarket. The company's earnings late Wednesday were fine. But the Street is calling out a few things that are giving the bears the win, for now. This note from HSBC's Ryan Mellor this morning captures it all nicely: This is remarkable on Meta Meta's (META) stock is rocking higher in premarket, to the tune of 12% after a monster quarter. Got to love the market ignoring the capex stuff in its earnings release below, and focusing in on Meta's revenue trends (strong). "We currently expect 2025 capital expenditures, including principal payments on finance leases, to be in the range of $66-72 billion, narrowed from our prior outlook of $64-72 billion and up approximately $30 billion year-over-year at the mid-point. While the infrastructure planning process remains highly dynamic, we currently expect another year of similarly significant capital expenditures dollar growth in 2026 as we continue aggressively pursuing opportunities to bring additional capacity online to meet the needs of our artificial intelligence efforts and business operations," Meta said. Bottom line: bull market ... carry on! Microsoft earnings call: A quick take A bit of a sleepy earnings call from Microsoft (MSFT) after the close, filled with the typical Satya Nadella tech jargon. Bottom line is this: Azure sales crushed, and there was zero signs of peaking AI demand. That should be good enough for the bulls. "We expect stock to trade up given continued large Azure growth beats and a positive AI trajectory even with continued capacity constraints. We think this also bodes well for other AI infrastructure names in our coverage (Oracle (ORCL), Coreweave (CRWV)," Citi analyst Tyler Radke said. Samsung Electronics chip business fell drastically in Q2 Samsung Electronics ( saw a mammoth drop in profit from the chip-making arm of the electronics giant. Bloomberg reports: Read more here. S&P 500, Nasdaq surge at the open The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) surged on Thursday, on track for fresh record highs after strong Meta (META) and Microsoft (MSFT) earnings fueled a spike in tech stocks. The Nasdaq climbed roughly 1.3%, while the S&P 500 rose 0.8%. The Dow Jones Industrial Average (^DJI) lagged, up less than 0.1%. The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) surged on Thursday, on track for fresh record highs after strong Meta (META) and Microsoft (MSFT) earnings fueled a spike in tech stocks. The Nasdaq climbed roughly 1.3%, while the S&P 500 rose 0.8%. The Dow Jones Industrial Average (^DJI) lagged, up less than 0.1%. Microsoft set to join $4T market cap club, Meta stock surges in post-earnings rally Microsoft (MSFT) and Meta (META) stocks ripped higher in premarket trading as investors continued to bid up shares following the tech giants' earnings reports. Combined, the two stocks have added about half a trillion dollars in market value since Wednesday's close. If gains hold, Microsoft is set to join Nvidia (NVDA) in the $4 trillion market capitalization club when the market opens. Its market cap as of Wednesday stood at $3.81 trillion, and the stock has gained nearly 9% in premarket trading. Meta stock surged 11% ahead of the opening bell. Both Meta and Microsoft reported strong revenue growth that outweighed investors' concerns about spending on artificial intelligence. 'The stock moves make sense — the results are that good,' D.A. Davidson head of technology research Gil Luria told Yahoo Finance following Meta's and Microsoft's earnings. 'Meta is gaining significant share in the digital advertising market, … and therefore investors have patience for the capex guidance they're providing.' Microsoft (MSFT) and Meta (META) stocks ripped higher in premarket trading as investors continued to bid up shares following the tech giants' earnings reports. Combined, the two stocks have added about half a trillion dollars in market value since Wednesday's close. If gains hold, Microsoft is set to join Nvidia (NVDA) in the $4 trillion market capitalization club when the market opens. Its market cap as of Wednesday stood at $3.81 trillion, and the stock has gained nearly 9% in premarket trading. Meta stock surged 11% ahead of the opening bell. Both Meta and Microsoft reported strong revenue growth that outweighed investors' concerns about spending on artificial intelligence. 'The stock moves make sense — the results are that good,' D.A. Davidson head of technology research Gil Luria told Yahoo Finance following Meta's and Microsoft's earnings. 'Meta is gaining significant share in the digital advertising market, … and therefore investors have patience for the capex guidance they're providing.' Fed's preferred inflation gauge shows price increases accelerated in June amid tariff uncertainty The latest reading of the Federal Reserve's preferred inflation gauge showed price increases accelerated in June as inflation remained above the Fed's 2% target. Yahoo Finance's Josh Schafer reports: Read more here. The latest reading of the Federal Reserve's preferred inflation gauge showed price increases accelerated in June as inflation remained above the Fed's 2% target. Yahoo Finance's Josh Schafer reports: Read more here. Roblox stock soars as daily active users surpass 100 million Roblox's (RBLX) stock rocketed 20% higher in premarket trading after reporting record daily users and raising its third quarter forecast for bookings. Daily active users rose 41% in the second quarter to cross 111 million, the company reported on Thursday. Roblox also raised its forecast for annual bookings in the third quarter to $1.59 billion to $1.64 billion. Bookings for the second quarter came in at $1.44 billion, beating market estimates of $1.24 billion. Reuters reports that the company has been investing in search and discovery features that allow greater visibility for viral games like "Grow a Garden." Roblox also aims to diversify its revenue beyond gaming by turning the platform into a hub for socializing, commerce, and advertising. The platform saw a boost in engagement during the quarter, with engaged hours up 58% to 27.4 billion. Read more here. Roblox's (RBLX) stock rocketed 20% higher in premarket trading after reporting record daily users and raising its third quarter forecast for bookings. Daily active users rose 41% in the second quarter to cross 111 million, the company reported on Thursday. Roblox also raised its forecast for annual bookings in the third quarter to $1.59 billion to $1.64 billion. Bookings for the second quarter came in at $1.44 billion, beating market estimates of $1.24 billion. Reuters reports that the company has been investing in search and discovery features that allow greater visibility for viral games like "Grow a Garden." Roblox also aims to diversify its revenue beyond gaming by turning the platform into a hub for socializing, commerce, and advertising. The platform saw a boost in engagement during the quarter, with engaged hours up 58% to 27.4 billion. Read more here. What's in the US-EU trade deal depends on who is doing the talking President Trump and European Commission President Ursula von der Leyen shook hands Sunday over a trade agreement. The White House did a victory lap, but days later, there are still plenty of disagreements about exactly what is in the pact. Yahoo Finance's Ben Werschkul reports: Read more here. President Trump and European Commission President Ursula von der Leyen shook hands Sunday over a trade agreement. The White House did a victory lap, but days later, there are still plenty of disagreements about exactly what is in the pact. Yahoo Finance's Ben Werschkul reports: Read more here. A quirk in the Fed's calendar puts extra pressure on the Sept. meeting Yahoo Finance's Hamza Shaban takes a look at the Federal Reserve's next move in today's Morning Brief: Read more here on how a long wait could result in a different outlook. Yahoo Finance's Hamza Shaban takes a look at the Federal Reserve's next move in today's Morning Brief: Read more here on how a long wait could result in a different outlook. Good morning. Here's what's happening today. Economic data: Challenger jobs cuts (July); Personal income & spending (June); Core PCE price index; Employment cost index (second quarter); Initial jobless claims (week ending July 26) Earnings: Apple (AAPL), Amazon (AMZN), Bristol Myers Squibb (BMY), Cigna (CI), Coinbase (COIN), CVS Health (CVS), Mastercard (MA), Norwegian Cruise Line (NCLH), Reddit (RDDT), Roblox (RBLX), Roku (ROKU), Strategy (MSTR) Here are some of the biggest stories you may have missed overnight and early this morning: Trump knocks Canada as countries rush to strike trade deals Trump tariffs face another legal test on eve of deadline Apple faces 2 major threats ahead of earnings What's in the US-EU trade deal? It depends on who's talking. Fed calendar quirk raises the stakes for its Sept. meeting Meta stock surges after earnings beat, guidance surprise Microsoft on track for $4 trillion market cap after earnings beat Arm stock falls as chip ambitions shake investor confidence Economic data: Challenger jobs cuts (July); Personal income & spending (June); Core PCE price index; Employment cost index (second quarter); Initial jobless claims (week ending July 26) Earnings: Apple (AAPL), Amazon (AMZN), Bristol Myers Squibb (BMY), Cigna (CI), Coinbase (COIN), CVS Health (CVS), Mastercard (MA), Norwegian Cruise Line (NCLH), Reddit (RDDT), Roblox (RBLX), Roku (ROKU), Strategy (MSTR) Here are some of the biggest stories you may have missed overnight and early this morning: Trump knocks Canada as countries rush to strike trade deals Trump tariffs face another legal test on eve of deadline Apple faces 2 major threats ahead of earnings What's in the US-EU trade deal? It depends on who's talking. Fed calendar quirk raises the stakes for its Sept. meeting Meta stock surges after earnings beat, guidance surprise Microsoft on track for $4 trillion market cap after earnings beat Arm stock falls as chip ambitions shake investor confidence Trending tickers: ARM, CVS and Confluent Here are some top stocks trending on Yahoo Finance in premarket trading: Arm (ARM) stock fell 6% on Thursday before the bell following the announcement of the chip tech provider's plan to invest in its own chip development, which would bite into future profits, disappointed investors. CVS (CVS) stock jumped 7% in premarket on Thursday after the company beat Wall Street estimates for second-quarter profit. Confluent Inc (CFLT) stock rose over 20% premarket following the company's positive earnings report. The data streaming platform reported a 21% growth in subscription revenue and a 28% growth in Confluent Cloud revenue for Q2 2025. Here are some top stocks trending on Yahoo Finance in premarket trading: Arm (ARM) stock fell 6% on Thursday before the bell following the announcement of the chip tech provider's plan to invest in its own chip development, which would bite into future profits, disappointed investors. CVS (CVS) stock jumped 7% in premarket on Thursday after the company beat Wall Street estimates for second-quarter profit. Confluent Inc (CFLT) stock rose over 20% premarket following the company's positive earnings report. The data streaming platform reported a 21% growth in subscription revenue and a 28% growth in Confluent Cloud revenue for Q2 2025. Carvana posts higher quarterly profit on record car sales Shares in Carvana (CVNA) surged over 15% in premarket trading after the online used-car seller defied expectations with strong second quarter results and outlook. Bloomberg reports: Read more here. Shares in Carvana (CVNA) surged over 15% in premarket trading after the online used-car seller defied expectations with strong second quarter results and outlook. Bloomberg reports: Read more here. EBay stock rises as resilient consumers fuel strong sales forecast EBay (EBAY) stock jumped on Thursday before the bell after the e-commerce company forecasted sales that topped analysts' estimates, suggesting optimism for continued consumer resilience at a time of shifting US tariff proposals. Bloomberg News reports: Read more here. EBay (EBAY) stock jumped on Thursday before the bell after the e-commerce company forecasted sales that topped analysts' estimates, suggesting optimism for continued consumer resilience at a time of shifting US tariff proposals. Bloomberg News reports: Read more here. AB InBev shares slide on concern over sales volumes Beer giant Anheuser-Busch InBev (BUD) stock slumped more than 9% before the bell on Thursday after reporting that its second quarter sales volumes fell more than expected due to weak demand in Brazil and China, adding to investor worries over industry growth and hitting its shares. Reuters reports: Read more here. Beer giant Anheuser-Busch InBev (BUD) stock slumped more than 9% before the bell on Thursday after reporting that its second quarter sales volumes fell more than expected due to weak demand in Brazil and China, adding to investor worries over industry growth and hitting its shares. Reuters reports: Read more here. Qualcomm on the move lower Qualcomm's (QCOM) not playing in the big-cap tech stock euphoria this morning led by Microsoft (MSFT) and Meta (META) post earnings. Its shares are down 6% premarket. The company's earnings late Wednesday were fine. But the Street is calling out a few things that are giving the bears the win, for now. This note from HSBC's Ryan Mellor this morning captures it all nicely: Qualcomm's (QCOM) not playing in the big-cap tech stock euphoria this morning led by Microsoft (MSFT) and Meta (META) post earnings. Its shares are down 6% premarket. The company's earnings late Wednesday were fine. But the Street is calling out a few things that are giving the bears the win, for now. This note from HSBC's Ryan Mellor this morning captures it all nicely: This is remarkable on Meta Meta's (META) stock is rocking higher in premarket, to the tune of 12% after a monster quarter. Got to love the market ignoring the capex stuff in its earnings release below, and focusing in on Meta's revenue trends (strong). "We currently expect 2025 capital expenditures, including principal payments on finance leases, to be in the range of $66-72 billion, narrowed from our prior outlook of $64-72 billion and up approximately $30 billion year-over-year at the mid-point. While the infrastructure planning process remains highly dynamic, we currently expect another year of similarly significant capital expenditures dollar growth in 2026 as we continue aggressively pursuing opportunities to bring additional capacity online to meet the needs of our artificial intelligence efforts and business operations," Meta said. Bottom line: bull market ... carry on! Meta's (META) stock is rocking higher in premarket, to the tune of 12% after a monster quarter. Got to love the market ignoring the capex stuff in its earnings release below, and focusing in on Meta's revenue trends (strong). "We currently expect 2025 capital expenditures, including principal payments on finance leases, to be in the range of $66-72 billion, narrowed from our prior outlook of $64-72 billion and up approximately $30 billion year-over-year at the mid-point. While the infrastructure planning process remains highly dynamic, we currently expect another year of similarly significant capital expenditures dollar growth in 2026 as we continue aggressively pursuing opportunities to bring additional capacity online to meet the needs of our artificial intelligence efforts and business operations," Meta said. Bottom line: bull market ... carry on! Microsoft earnings call: A quick take A bit of a sleepy earnings call from Microsoft (MSFT) after the close, filled with the typical Satya Nadella tech jargon. Bottom line is this: Azure sales crushed, and there was zero signs of peaking AI demand. That should be good enough for the bulls. "We expect stock to trade up given continued large Azure growth beats and a positive AI trajectory even with continued capacity constraints. We think this also bodes well for other AI infrastructure names in our coverage (Oracle (ORCL), Coreweave (CRWV)," Citi analyst Tyler Radke said. A bit of a sleepy earnings call from Microsoft (MSFT) after the close, filled with the typical Satya Nadella tech jargon. Bottom line is this: Azure sales crushed, and there was zero signs of peaking AI demand. That should be good enough for the bulls. "We expect stock to trade up given continued large Azure growth beats and a positive AI trajectory even with continued capacity constraints. We think this also bodes well for other AI infrastructure names in our coverage (Oracle (ORCL), Coreweave (CRWV)," Citi analyst Tyler Radke said. Samsung Electronics chip business fell drastically in Q2 Samsung Electronics ( saw a mammoth drop in profit from the chip-making arm of the electronics giant. Bloomberg reports: Read more here. Samsung Electronics ( saw a mammoth drop in profit from the chip-making arm of the electronics giant. Bloomberg reports: Read more here.


Forbes
an hour ago
- Forbes
Is There More Upside For MSFT Stock?
Microsoft (NASDAQ:MSFT) delivered a strong Q4 performance, surpassing consensus estimates for earnings, sales, and its future outlook. This positive news has sent the stock up 8% in pre-market trading, extending its impressive rally of over 50% since its April low of around $350. Despite this significant climb, we believe there's still considerable upside potential. While Microsoft's current valuation is high, we see minimal cause for concern, making it an attractive investment. Our optimistic view stems from a comprehensive analysis comparing MSFT's current valuation to its recent operating performance and its historical and current financial health. We've assessed Microsoft across key parameters: Growth, Profitability, Financial Stability, and Downturn Resilience. This analysis reveals Microsoft's exceptionally strong operating performance and financial condition. That said, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception. Separately, see – META Stock To $1,500? Solid Revenue Growth Microsoft has demonstrated notable revenue growth in recent years, outperforming the S&P 500. Over the last three years, its top line has grown at an average rate of 12.5%, compared to 5.3% for the S&P 500. In the most recent twelve-month period, revenues increased by 14.9% from $245 billion to $282 billion, while the S&P 500 saw 4.4% growth. Quarterly revenues in the most recent period grew 18% to $76.4 billion from $65 billion a year ago, against a 4.5% improvement for the S&P 500. This consistent, strong revenue expansion supports the company's robust market position. Profitability On The Rise Microsoft exhibits exceptionally high profit margins, considerably exceeding most companies in the Trefis coverage universe. Its operating income over the last four quarters was $129 billion, translating to a substantial operating margin of 45.6%, in contrast to 18.3% for the S&P 500. The company's operating cash flow (OCF) for the same period was $136 billion, indicating a very high OCF margin of 48.3% compared to 19.8% for the S&P 500. Furthermore, Microsoft's net income of $102 billion over the last four quarters yielded a considerable net income margin of 36.1%, significantly higher than the S&P 500's 11.8%. These strong profitability metrics underscore Microsoft's efficient operations and effective cost management. Robust Financial Strength Microsoft's balance sheet is characterized by very strong financial stability. As of the most recent quarter, its debt stood at $61 billion, with a market capitalization of close to $4 trillion. This translates to a very strong debt-to-equity ratio of 1.5%, which is substantially lower than the S&P 500's 23.4%. The company also maintains a healthy cash position, with cash (including cash equivalents) making up $95 billion of its $619 billion in total assets, resulting in a strong cash-to-assets ratio of 15.3% compared to 6.7% for the S&P 500. These figures highlight Microsoft's robust financial health and its ability to manage its liabilities effectively. Good Downturn Resilience Microsoft stock has generally shown slightly better resilience than the broader markets during recent economic downturns. During the Inflation Shock of 2022, MSFT fell 37.6% but fully recovered by June 15, 2023. In the Covid Pandemic of 2020, MSFT saw a 28.2% decline from its peak, recovering fully by June 9, 2020, outperforming the S&P 500's 33.9% drop. Look at Buy or Sell MSFT stock for more details. But Valuation Is High Overall, Microsoft demonstrates very strong performance across growth, profitability, and financial stability, with its downturn resilience being neutral. This comprehensive analysis points to an overall very strong outlook for MSFT stock. Microsoft's stock currently commands a premium valuation when compared to the broader market, as well as some of its peers, reflected in its key multiples. Its price-to-sales (P/S) ratio stands at 14.6, significantly higher than the S&P 500's 3.1. Similarly, its price-to-earnings (P/E) ratio of 40.7 substantially exceeds the benchmark's 22.8. This is higher than its peers, with META stock trading less than 30 times and AMZN stock trading at 39 times trailing earnings. This elevated valuation suggests market confidence in Microsoft's future performance and its strong competitive position. The Verdict Microsoft's recent performance strongly suggests that a premium valuation is well-deserved. The accelerating growth in Azure revenues, coupled with improving profitability and a robust outlook, points towards a sustained upward revision in its valuation multiple. While the stock currently trades at over 40 times trailing earnings, it has historically commanded premium valuations; for example, its average price-to-earnings ratio over the last four years is 35 times. Consequently, we believe there is still further upside potential for MSFT stock, despite its recent surge. Of course, this optimistic view carries inherent risks. Investors might become hesitant to pay an even higher premium, particularly given the substantial capital expenditure Microsoft is directing towards AI initiatives. It is crucial for investors to thoroughly consider all associated risks before making any investment decisions. However, for those with a 3−5 year investment horizon, MSFT stock, even at its current levels, could offer significant upside potential. Related – MSFT Stock To $1,000? Now, there always remains a meaningful risk when investing in a single stock, or just a handful of stocks. Consider the 30-stock Trefis High Quality (HQ) Portfolio, which has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.