Tech giants continue to live and die by the cloud, so let’s see how Alphabet and Microsoft fared today. 👇
Alphabet reported better-than-expected results across its segments. Below is CNBC’s summary graphic.
So far, Search revenue has been resilient, though it’s too early to see the potential impact of Microsoft’s artificial intelligence (AI) efforts in the space. Meanwhile, a rebound in advertising and strength in the company’s cloud unit boosted results.
Overall, investors were happy with the results. $GOOGL shares rose to fresh recovery highs after hours, up nearly 7%. 📈
Microsoft didn’t experience the same cloud strength. But first, let’s see the headline numbers. 👀
Adjusted earnings per share of $2.69 topped the $2.55 anticipated. Revenues of $56.19 billion were also ahead of the expected $55.47 billion.
Below is a snapshot of how the company’s product and service segments performed YoY. 📋
The company’s Azure cloud revenue growth slowed one percentage point QoQ to 26%, weighing on investor sentiment. Although it’s a slight decrease, it’s expected to be the primary growth driver of the business going forward. And with a stock price that’s trading at all-time highs, a lot of high expectations are already priced in. ⛅
In the meantime, investors will be closely watching mentions of artificial intelligence (AI) during the company’s conference call. Recent news that it plans to charge $30 per month per user for its Copilot service boosted shares, so the market is eager to hear more about its plans to monetize this tech.
$MSFT shares barely budged on the news, sitting down about 1% after hours. 🤷
