CNBC Investing Club stock performance: Microsoft led while Meta lagged
Microsoft, Eaton and Salesforce led CNBC Investing Club holdings since its last meeting, while Meta, Apple and Linde declined.
By Jordan Bell · Startups & Deals Reporter
· 3 min read
CNBC Investing Club stock performance split sharply across six holdings since the group’s previous monthly meeting. CNBC reported that Microsoft, Eaton and Salesforce were its strongest performers, while Meta Platforms, Apple and Linde were the weakest. For investors, the update shows how closely earnings, spending plans and guidance are shaping reactions to companies connected to artificial intelligence.
The broader market rose over the same period, according to CNBC: the Nasdaq gained 2.7%, the S&P 500 rose 2.6% and the Dow added 2.3%. CNBC said the advance came with volatility, including pressure on some AI-linked stocks during the unwind of Situational Awareness, which it described as a highly leveraged AI-focused hedge fund.
Which CNBC Investing Club stocks rose and fell?
- Microsoft rose 22.8%.
- Eaton gained 16.1%.
- Salesforce advanced 12.0%.
- Linde fell 7.9%.
- Apple declined 9.3%.
- Meta Platforms dropped 12.9%.
Microsoft’s July 29 results helped change sentiment around AI spending, in CNBC’s account. The company reported $90 billion in fiscal fourth-quarter revenue, up 18% from a year earlier, while Microsoft Cloud revenue rose 27% to $59.3 billion. Azure and other cloud-services revenue increased 43%, according to Microsoft. CNBC also pointed to a relatively disciplined capital-spending outlook and $19 billion in free cash flow as factors that gave investors greater confidence in the company’s AI investment program.
Eaton’s gain followed a quarterly report that, CNBC said, beat expectations for revenue and earnings, lifted its full-year organic-growth and earnings outlook, and showed stronger orders and backlog in its electrical businesses. CNBC views Eaton as a picks-and-shovels AI-infrastructure holding tied to the data-center buildout. The rebound followed forced selling that had weighed on AI-infrastructure names, CNBC said.
Salesforce’s rise reflected a shift in sentiment toward enterprise software rather than an earnings catalyst disclosed in CNBC’s update. CNBC said investors had worried that AI could disrupt software-as-a-service business models, but money rotated from semiconductors into beaten-down software shares after the Situational Awareness unwind. Strong results from Microsoft and Palantir also supported that move, CNBC reported.
Why did Linde, Apple and Meta decline?
Linde fell after reporting second-quarter earnings and revenue above expectations, according to CNBC. Investors instead focused on lighter-than-expected guidance and pressure on healthcare margins from higher labor costs and insurance reimbursement changes.
CNBC said Apple’s July 30 results exceeded Wall Street’s revenue and profit expectations, but higher memory costs, supply constraints and softer guidance overshadowed the beats. The report also said Apple had raised prices on some Macs and iPads as memory costs climbed.
Meta’s advertising business remained strong, CNBC said, but its July 29 earnings brought investor concern over the timing of returns from heavy AI spending. CNBC cited a softer revenue outlook, higher capital spending and an approximately 91% drop in quarterly free cash flow.
Honeywell Aerospace was not included among the bottom three. CNBC said it would have been down 19.5% since the prior meeting, but the club had sold the position after management cut guidance in its first standalone earnings report, citing supply-chain execution issues. The recap reflects CNBC Investing Club’s portfolio and analysis, rather than a broad screen of AI-related stocks or individualized investment advice.
This story draws on original reporting from CNBC.
