Dear Reader,

Back in 2014…

Tesla was still considered a risky experiment.

Most investors ignored it.

But those who recognized Elon Musk’s long-term vision early had the chance to see the stock climb more than 3,000%.

Today, Musk may be building something even bigger.

A global AI infrastructure network that could support everything from autonomous vehicles to robotics and beyond.

And the core company behind this network isn’t Tesla.

It’s one of Musk’s private ventures.

Investment analyst Matt McCall recently explained how investors can gain exposure to this company through a simple brokerage account.

Right now the investment involved trades for less than $30.

Click here to see how it works.

Here’s to the future,
Matt McCall

5 Mega-Cap Stocks That Beat Q1 2026 Earnings and Are Still Climbing

Authored by Ryan Hasson. Publication Date: 5/4/2026.

This earnings season has delivered a clear message: the companies leading this market are not just holding up in a challenging macroeconomic and geopolitical environment, they are accelerating and growing at an impressive pace.

Five of the most closely watched names in the market reported Q1 2026 results this past week, and all five delivered beats that went well beyond the headline numbers. Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Apple (NASDAQ: AAPL), Qualcomm (NASDAQ: QCOM), and Caterpillar (NYSE: CAT) each offered something different, but together they paint a picture of a market where the strongest businesses are widening the gap. For investors looking ahead, the case for continued outperformance across all five remains fairly compelling.

Alphabet: The AI Platform That Keeps Pulling Away

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Alphabet delivered what may have been the defining earnings report of the season. Q1 revenue of $109.9 billion grew 22% year over year, the fastest pace since 2022. That figure, unsurprisingly, comfortably topped the $107.1 billion consensus. The company’s EPS of $5.11 grew a staggering 82% year over year and handily beat the consensus estimate.

But the headline that mattered most was Google Cloud, which posted $20.03 billion in revenue, up 63% year over year and well above the $18.4 billion estimate. That wasn’t simply a beat; it was a clear statement from the company. It builds on the impressive acceleration from 48% growth in Q4 2025, and it marked the first time Google Cloud has crossed the $20 billion quarterly threshold.

The cloud backlog nearly doubled quarter over quarter to more than $460 billion, a number that suggests the growth runway extends well beyond anything current models reflect.

Management raised its full-year CapEx guidance to $180 billion to $190 billion, reinforcing its conviction that AI infrastructure demand is accelerating, not plateauing.

From a technical perspective, although the mega-cap stock is up almost 140% over the past 12 months, it remains firm and has yet to extend meaningfully from key moving averages. Now, fresh from a breakout above prior resistance, if the stock can consolidate above $360, it could present a new round of potential long-term entry points.

Amazon: AWS Hits Its Fastest Growth in 4 Years

Amazon delivered arguably its strongest all-around quarter in years. Total revenue of $181.5 billion grew 17% year over year and topped the $177.2 billion consensus. Its EPS of $2.78 nearly doubled the $1.64 analyst estimate.

As with GOOGL, the headline for Amazon was AWS, which grew 28% year over year to $37.6 billion, its fastest growth rate in 15 quarters and ahead of the 26% consensus. Operating income hit $23.9 billion, producing a 13.1% margin that CEO Andy Jassy described as the highest in Amazon's history.

The chips business, comprising Trainium, Graviton, and Nitro, crossed a $20 billion annualized revenue run rate, growing at triple-digit percentages year over year. More tokens were processed through Bedrock in Q1 2026 than in all prior years combined.

Q2 guidance of $194 billion to $199 billion points to continued momentum for the retail and tech giant.

The stock is trading above prior resistance at $260, and if it can consolidate and build a fresh base above that level, the bulls may look for new entry points and continuation to the upside.

Apple: A Record March Quarter Across Nearly Every Metric

Apple delivered its best March quarter in company history, and the numbers made that clear across almost every line of the report. Revenue of $111.2 billion grew 17% year over year, beating the $109.66 billion consensus. EPS of $2.01 grew 22% year over year, setting a new March quarter record. Services revenue hit an all-time high of $30.98 billion, up 16%. iPhone revenue of $56.99 billion grew 22%, another March quarter record, with CEO Tim Cook describing the iPhone 17 lineup as the most popular in the company's history, achieved despite supply constraints throughout the quarter. Gross margin of 49.3% came in above both guidance and the 48.4% consensus estimate.

The board authorized a fresh $100 billion share buyback and raised the quarterly dividend 4% to 27 cents per share, marking 14 consecutive years of dividend growth. Q3 guidance of 14% to 17% revenue growth crushed the 9.5% analyst estimate by a wide margin.

From a technical point of view, the setup is bullish and constructive. Prior to earnings, the stock had spent almost five months consolidating near its 52-week high in a bullish formation.

Post-earnings, the stock retested its 52-week high and failed to clear it, but still closed the session strong.

If AAPL can consolidate near this breakout point in the days and weeks ahead, it could mark the early stages of a broader, higher-timeframe breakout.

Qualcomm: 2 Catalysts in 1 Week, and a Bigger Story Developing

Qualcomm's week deserves some context. Before the earnings report even arrived, the stock had already surged on a report that the company is partnering with OpenAI and MediaTek to develop next-generation smartphone processors, a potential design win that would represent a significant new revenue stream. The earnings report then added a second catalyst.

Revenue of $10.6 billion and non-GAAP EPS of $2.65 both came in above expectations. The segment worth focusing on was Automotive. QCT Automotive revenue of $1.3 billion grew 38% year over year, crossing a $5 billion annualized run rate for the first time in company history, with management guiding that figure to exceed $6 billion annualized by fiscal year-end. Q3 automotive growth is expected to further accelerate to approximately 50% year over year.

The handset segment faced a cyclical headwind from Chinese OEMs drawing down inventory in response to memory supply pressures, but management was direct: Q3 is the bottom, and sequential growth resumes in Q4. And then there was the disclosure that many on the Street missed. Qualcomm confirmed it expects to ship initial custom silicon to a leading hyperscaler in December, its first concrete data center revenue milestone.

For a company that has long been viewed through a handset lens, the automotive trajectory and the emerging data center opportunity together represent a meaningfully different business than the one many investors have been pricing.

Caterpillar: The Industrial AI Play Nobody Saw Coming

Caterpillar might have been the most unexpected earnings story of the week. Q1 revenue of $17.4 billion grew 22% year over year, well ahead of the $16.5 billion consensus. Adjusted EPS of $5.54 beat the $4.62 estimate by nearly a full dollar, the largest earnings beat in five quarters for the company. But neither of those numbers was the one that stopped analysts in their tracks. That was the backlog: $63 billion, up 79% year over year, with all three major business segments contributing.

Power Generation revenue surged 41%, driven almost entirely by demand for Caterpillar's large reciprocating engines and turbines from hyperscale data center operators building out AI infrastructure. Construction Industries jumped 38%. Tariff costs of approximately $600 million came in well below the $800 million estimate, protecting margins more than the market had modeled.

The analyst reaction was swift. Morgan Stanley doubled its price target to $915 and upgraded the stock. JPMorgan raised its target to $1,125, calling the report a resounding beat. Management raised its long-term revenue growth target to a 6% to 9% compound annual rate through 2030 and increased its power generation sales target to more than three times the 2024 baseline by 2030. For investors who had filed Caterpillar away as a cyclical industrial play with limited upside, this quarter likely demanded a rethink. It is quietly becoming one of the most direct and underappreciated beneficiaries of AI infrastructure spending in the entire market.

ServiceNow's 18% Drop: AI Fears Continue, But May Be Overblown

Written by Leo Miller. Originally Published: 4/24/2026.

Over the past several months, software giant ServiceNow (NYSE: NOW) has been one of the most hotly debated tech stocks in the market.

This is clear from the significant swings in NOW’s share price. After ending 2025 near $150, shares fell to $100 by early February. About a month later, they recovered to nearly $125. The stock then dropped below $85 by early April before rebounding above $100 over the next two weeks.

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ServiceNow is back in the dumps following its latest earnings report. The stock fell about 18% in a single day, sliding to around $85.

The stock’s up-and-down trading in 2026 largely comes down to one debate: how artificial intelligence (AI) tools will affect the growth outlook for software incumbents. Based on what is currently known about this company, here is where ServiceNow stands.

Understanding ServiceNow’s Volatility: The AI Debate

The growing capabilities and popularity of artificial intelligence (AI) tools have driven much of ServiceNow’s volatility. In general, many investors worry that the lower barrier to entry in coding will significantly hurt the growth of incumbent software companies. The concern is that these tools could enable customers to build internally the systems they previously relied on ServiceNow for. AI agents could also do something similar.

Some investors are selling the stock on that fear. Others are buying when it drops, believing the concern is overblown. Those dueling views likely account for most of the volatility in ServiceNow stock. The conflict in the Middle East, which has also caused significant volatility across the broader market, is another key factor affecting ServiceNow.

With AI evolving so quickly, it is difficult to say which side is right. However, given what investors know about ServiceNow’s fundamentals, they can assess whether the market is pricing in too much pessimism.

Puts and Takes: ServiceNow Beats, But Organic Growth Outlook Faces Scrutiny

In its latest quarter, ServiceNow delivered another solid set of results, as it has done for many quarters. Revenue came in at $3.77 billion, growing more than 22% year over year (YOY). That was very consistent with the company’s growth rates over the past two years and slightly above estimates of $3.75 billion. ServiceNow’s adjusted earnings per share was 97 cents, representing 20% YOY growth and coming in right in line with expectations.

The company also posted an operating margin of 32%, 50 basis points above guidance. That was due to AI driving expense efficiency, showing how the firm is using AI itself to lower costs.

The company slightly raised its guidance, but in reality, organic growth guidance was essentially unchanged. The firm moved the midpoint of its full-year subscription guidance up by $205 million to $15.775 billion. However, nearly all of that increase comes from its recently closed acquisition of Armis, which will add 125 basis points of growth during the year.

On the other hand, the company is baking some caution into its outlook because of uncertainty around the conflict in the Middle East. That seems fair, considering that delays in Middle Eastern deals were a 75-basis-point headwind to Q1 growth.

The firm also lowered its margin guidance due to Armis. It now sees full-year operating margin at 31.5% and free cash flow margin at 35%. Those figures are 50 basis points and 100 basis points lower than past guidance, respectively. Still, that makes sense, as ServiceNow’s prior guidance did not include Armis. Acquisitions come with integration costs, so a margin headwind is not unexpected.

Analysts Eye Big-Time Upside After ServiceNow’s Fall

Notably, the firm continued to see momentum in its AI offerings. The number of customers spending $1 million or more in annual contract value (ACV) on its Now Assist platform increased by 130% YOY. The firm’s goal was to exceed $1 billion in ACV for Now Assist in 2026. Management said, “We might have understated that a little bit. We're already talking about $1.5 billion now.”

ServiceNow believes that corporations' spending on AI labs is not cannibalizing its business. The firm said, "customers are spending a lot on AI, but that is incremental. It is not replacing what they're spending on us." Given the company’s strong growth, that appears to be true, at least for now.

The firm also made strong statements about how its recent AI acquisitions will strengthen its AI offerings. ServiceNow noted, “We just got them, and we're building out the story with them, and they're going to set the world on fire with reaccelerating revenue growth."

ServiceNow shares have fallen to a level that requires fairly undemanding long-term growth. The market seems to be pricing in a scenario where AI has a significantly negative net impact on the company. With AI fears high, the stock’s post-earnings reaction feels more panic-driven than justified. Near $85, NOW’s outlook appears positively skewed over the long term.

Despite many firms lowering their targets after earnings, analysts remain bullish on the stock. The average of price targets updated after the results is approximately $145. That implies more than 65% upside from current levels. It is only modestly below the MarketBeat consensus price target near $150. Even so, AI fears are likely to keep shares volatile in the near term.