Jump to content

Google and Microsoft shares higher as earnings impress

Recommended Posts

Despite a drop off in digital advertising at Snap, Google’s ad revenue held up and the stock rose in extended trade. Microsoft's stock also closed higher all-session despite some volatility, after it delivered a positive outlook.


 Jeremy Naylor | Writer, London | Publication date: Wednesday 27 July 2022 

Tech earnings

Tech earnings got underway last night. Microsoft Microsoft Corp (All Sessions) said it sees double-digit growth this fiscal year as it continues to benefit from the shift to hybrid work models that have accelerated during the pandemic.

Despite the positive forecast for this new fiscal year, Microsoft's two full results missed expectations. We saw earnings per share (EPS) of $2.23, $0.06 lower than forecast. And while revenue rose 12% year-over-year (YoY) to $51.8 billion, which is driven by Microsoft's cloud computing division, that, too, came in short of estimates of $52.4 billion. This is mainly due to PC shipments experiencing a big decline in the recent quarter - nearly 13% according to Gartner. It's the sharpest decline in nine years, thanks to geopolitical tensions, inflation and continued supply chain challenges.

Let's take a look at all-sessions trade on the IG platform. We're currently down one third of 1%. But you can see yesterday, all sessions late last night, we saw a considerable amount of volatility in the share price for Microsoft, which at one point it was very close to disappearing below this line of support, taking us there on this down to levels not seen since May 2021, but recovery underway and shares pretty much holding on to where they ended out yesterday's session.


Meanwhile, Google's owner Alphabet Inc - C (All Sessions) also rose in extended trade despite earnings and revenue missing estimates. Let's take a look at the numbers: EPS at 1.21 against the 128 expectation, revenues also falling short just shy of $70 billion with investors reacting positively to the news that sales at Google Search, the group's biggest moneymaker, beat expectations.

Travel and retail advertisers also drove an increase in nearly 14% in search ad sales for Google during the second quarter which at $40.69 billion beat FactSet estimates of $40.15 billion. The result was nonetheless quite underwhelming. YouTube ad revenue interestingly rose $7.34 billion. We have been looking for $7.5 billion so that was short of forecasts.

Alphabet share price

Let's take a look at the share price for Alphabet, which owns Google, and we are trading pretty much in the middle of this band that we've got here between $102 and $120 currently trading at 10909.

Yesterday we saw a rise in extended trade around about two-and-a-half percent. But since then we've seen a little bit of an easing back. But the broad message is that we've got a continuation of this trend trading that we've seen between those two extremes.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Is there any update on A Dividend Reinvestment Plan ?    Thanks  
    • How Merlin Is Addressing Bitcoin Scalability With A Unique Layer 2 Approach If you've been around the crypto world for a while, you're likely familiar with the limitations of Bitcoin's Layer 1 and its scalability issues. Over time, we've seen various innovative proposals like Wormhole's unique approach to address these limitations. In this context, Merlin Chain caught my attention. It's a project that aims to tackle Bitcoin's scalability challenges by offering a Layer 2 solution built on the ZK-Rollups model. This translates to faster and cheaper transactions while maintaining security through a decentralized oracle network with anti-fraud measures. Developed by the well-established Bitmap Tech team, Merlin Chain boasts a market cap exceeding $500 million. Their key objective has always been to empower existing Bitcoin assets by enabling them to interact seamlessly on the Layer 2 network. I believe backing from 20+ prominent VC firms like OKX Ventures and ViaBTC suggests confidence in Merlin Chain's future. MERL was launched as the first token on Bitget's pre-market trade platform and had a commendable price action. Is Merlin Chain's Layer 2 solution a long-term solution to this issue? Let's hear your candid opinions in the comments section below! Cheers! #Bitcoin #btc #halving #transactions #merlin #merl #bitget #web3 #wormhole
    • As the crypto sector undergoes transformation, Asia emerges as a formidable player alongside the established giants of the US and Europe. With significant investments and a growing user base, the region's potential for dominance is unmistakable. Leading this movement is Dubai, pioneering crypto adoption with its favorable regulations, attracting crypto exchanges focused on the region. A standout in this field is Bitget, Asia's largest web3 wallet provider, boasting a user base of over 19 million. Through regular events, Bitget cultivates community engagement, recognizing and rewarding the trust and loyalty of its users. One such event, the ongoing "Bitget Super Savings," offers over $20,000 worth of hot tokens across various categories, providing users with an opportunity to enrich their crypto portfolios. For those in South Asia, Bitget extends an invitation to participate in this ongoing event. Seize the chance to earn free hot tokens before the event concludes on April 26th. Good luck!
  • Create New...