What's Next for Nasdaq After Meta and Microsoft Soared

On Thursday, Meta Platforms (META) and Microsoft (MSFT) sent Nasdaq (QQQ) to all-time highs intraday to cap a strong July 2025 stock market.Meta stock traded as high as $784.75 before closing at $773.44, up by 11.25%. It earned $7.14 a share, beating estimates by nearly $1.25. Revenue jumped to $47.52 billion, up by 21.6% Y/Y. Investors who avoided the magnificent seven on concerns of valuations in the last two years missed out.Meta’s guidance is impressive. It is forecasting up to $50.5 billion in revenue, compared to the $45 billion consensus. In 2025, Meta will spend $114 billion to $118 billion. It continues to invest in artificial intelligence initiatives.Microsoft (MSFT) traded as high as $555.45 yesterday, then closed at $533.50 (+3.95%). Azure growth accelerated, rebounding from prior slowdowns. Driven by the AI contribution, Azure will continue to lift its Intelligent Cloud revenue.The two firms failed to keep Nasdaq from closing at a record high. Ongoing macroeconomic headwinds from tariffs hurt shares of Tesla (TSLA), Alphabet (GOOG), Broadcom (AVGO), Qualcomm (QCOM), and Micron (MU). Stretched valuations may shrink if the market’s bullish sentiment reverses.Investors should continue to wait for META and MSFT stock to pull back before adding to the long-term position. They have a commanding lead in their core business of advertising and cloud AI, respectively. Their investments in AI will keep them ahead of the competition.