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The reported results of Microsoft (MSFT.US) and Alphabet (GOOGL.US) Boost Big-Tech Sentiment

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The reported results of Microsoft (MSFT.US) and Alphabet (GOOGL.US) yesterday after the close of the Wall Street session performed really well and boosted investor sentiment in the technology company sector. MSFT’s results were particularly well received, managing to beat the upper end of analysts’ expectations for reported quarterly results. The improved results had a common denominator, the Cloud division of both Microsoft and Alphabet reported a significant increase in earnings, and GOOGL reported its first positive result ever. Let’s take a look at the details of the results presented by the companies.

Microsoft:

  • Revenue: $52.9 billion vs. $51.1 billion expected
  •  Adj. EPS: $2.45 vs. $2.23 expected
  •  Productivity and Business processes: $17.5 billion vs. $17.1 billion expected
  •  Intelligent Cloud: $22.1 billion vs. $21.9 billion expected
  •  More Personal Computing: $13.3 billion vs. $12.3 billion expected

Microsoft’s Cloud division’s revenue grew 16 per cent in the first three months of 2023, a faster-than-expected pace that allayed fears of a sharp slowdown in corporate customer spending following the digital services boom during the Covid-19 pandemic. The company announced an even faster pace of implementation of AI services into the fabric of the company’s core business. Source: Bloomberg

Alphabet: 

  • Revenues $69.8 billion versus a $68.96 billion expected
  •  EPS $1.17 versus $1.08 expected
  • YouTube’s revenue $6.69 billion versus expected $6.65 billion expected
  • Advertising revenue $54.55 billion versus $53.79 billion expected
  • service revenues $61.96 billion versus $61.27 billion expected
  • Cloud revenue $7.45 billion versus $7.46 billion expected

Alphabet’s (GOOGL.US) board has approved a $70 billion share buyback programme. The company continues to intensify efforts in the face of internal cost-cutting. Internet traffic acquisition costs (TAC) were $11.72bn vs. expected. USD 11.78 billion. On the other hand, during a conference call, Alphabet CEO Ruth Porat communicated that the business outlook for the future remains highly uncertain. Source: Bloomberg

Microsoft (MSFT.US) shares gained more than 8.5% at the close of yesterday’s session. Source: xStation 5

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