Alphabet shares declined by over 8% after it beat revenue and earnings targets yet fell short with its cloud business. Still, Alphabet CEO Sundar Pichai revealed that his company is seeing “a lot of interest in AI”, attempting to inject hope into what appeared to be a disappointing third quarter.

Microsoft stocks gained 4% after it was shown that its AI business was taking off, while its cloud business grew by 3%. “Some of the improvements, we’re making in Azure and even in Microsoft 365 gross margins, even in the core of the commercial cloud, it speaks to the pace at which we are delivering AI revenue with the increasing cost expense and capital investment ahead with the demand we see,” Microsoft CFO Amy Hood observed.

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The tech-heavy Nasdaq Composite Index advanced by 0.6%, while the Dow Jones was up by 0.3% to mark its 12th consecutive day of gains. The S&P 500 index rose by 0.3%.

Earnings reports from Microsoft and Alphabet are due to be released after the market’s close on Tuesday. These results are widely expected to provide an outlook of what Big Tech earnings should look like going forward.

In addition to tech earnings, the Federal Reserve’s upcoming policy decision is also occupying a space in investors’ minds. The central bank’s two-day July meeting begins on Tuesday. Most analysts expect an interest rate hike to be implemented.

Going against the grain, General Motors stocks fell by 4% at midday despite the company’s strong second-quarter earnings results. Spotify shares plunged by 14% after the music streaming platform reported a wider-than-expected loss for the second quarter despite a large influx in subscribers.

The post Nasdaq Leads Stock Gains as Alphabet And Microsoft Earnings in Focus appeared first on theprimarymarket.com.

Alphabet’s revenue in Q1 came at $69.79 billion, a 3% increase from the year prior, compared to the $68.9 billion expected by analysts polled by Refinitiv. The reported $1.17 in earnings per share also exceeded the estimated mark of $1.07 per share.

The company also performed well in the digital advertising department despite the overall decline across the industry. Google Ad and YouTube Ad revenues came at $54.55 billion and $6.69 billion, respectively, versus expectations of $53.75 billion for Google and $6.64 billion for YouTube. Google Cloud revenue of $7.45 billion failed short of the $7.49 billion expected but turned a profit for the first time.

Alphabet’s earnings report also revealed that its board approved a $70 billion stock buyback and that the company had $2.6 billion in charges related to recent job cuts and office renovations.

“We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud,” Alphabet’s CEO Sundar Pichai said in a statement. 

Alphabet’s stock closed at $103.85 per share on Tuesday before seeing a short jump to $108.45 in after-hours trading. The company’s shares are 16.53% up year-to-date.

The post Alphabet Beats Revenue and Earnings Estimates in Q1 appeared first on theprimarymarket.com.

Alphabet shares declined by over 8% after it beat revenue and earnings targets yet fell short with its cloud business. Still, Alphabet CEO Sundar Pichai revealed that his company is seeing “a lot of interest in AI”, attempting to inject hope into what appeared to be a disappointing third quarter.

Microsoft stocks gained 4% after it was shown that its AI business was taking off, while its cloud business grew by 3%. “Some of the improvements, we’re making in Azure and even in Microsoft 365 gross margins, even in the core of the commercial cloud, it speaks to the pace at which we are delivering AI revenue with the increasing cost expense and capital investment ahead with the demand we see,” Microsoft CFO Amy Hood observed.

The post Stocks Dip Following Alphabet and Microsoft Earnings appeared first on theprimarymarket.com.

The tech-heavy Nasdaq Composite Index advanced by 0.6%, while the Dow Jones was up by 0.3% to mark its 12th consecutive day of gains. The S&P 500 index rose by 0.3%.

Earnings reports from Microsoft and Alphabet are due to be released after the market’s close on Tuesday. These results are widely expected to provide an outlook of what Big Tech earnings should look like going forward.

In addition to tech earnings, the Federal Reserve’s upcoming policy decision is also occupying a space in investors’ minds. The central bank’s two-day July meeting begins on Tuesday. Most analysts expect an interest rate hike to be implemented.

Going against the grain, General Motors stocks fell by 4% at midday despite the company’s strong second-quarter earnings results. Spotify shares plunged by 14% after the music streaming platform reported a wider-than-expected loss for the second quarter despite a large influx in subscribers.

The post Nasdaq Leads Stock Gains as Alphabet And Microsoft Earnings in Focus appeared first on theprimarymarket.com.

Alphabet’s revenue in Q1 came at $69.79 billion, a 3% increase from the year prior, compared to the $68.9 billion expected by analysts polled by Refinitiv. The reported $1.17 in earnings per share also exceeded the estimated mark of $1.07 per share.

The company also performed well in the digital advertising department despite the overall decline across the industry. Google Ad and YouTube Ad revenues came at $54.55 billion and $6.69 billion, respectively, versus expectations of $53.75 billion for Google and $6.64 billion for YouTube. Google Cloud revenue of $7.45 billion failed short of the $7.49 billion expected but turned a profit for the first time.

Alphabet’s earnings report also revealed that its board approved a $70 billion stock buyback and that the company had $2.6 billion in charges related to recent job cuts and office renovations.

“We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud,” Alphabet’s CEO Sundar Pichai said in a statement. 

Alphabet’s stock closed at $103.85 per share on Tuesday before seeing a short jump to $108.45 in after-hours trading. The company’s shares are 16.53% up year-to-date.

The post Alphabet Beats Revenue and Earnings Estimates in Q1 appeared first on theprimarymarket.com.