Microsoft reported $3.46 in earnings per share, marking an 18% year-over-year increase, compared to an estimated $3.22. Its revenue jumped by 13% compared to the same period last year and came to $70.07 billion while Wall Street analysts expected $68.42 billion.

The company mostly benefited from the strong performance of its cloud business, which saw a 20% year-over-year increase. The revenue associated with its cloud computing platform Azure grew by 33%, with AI contributing 16 points to the growth. Analysts expected Azure’s revenue to jump by around 30% and AI to contribute 15.6 points of growth.

“We delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20% (up 22% in constant currency) year-over-year driven by continued demand for our differentiated offerings,” Microsoft executive vice president and CFO Amy Hood shared in a statement.

Microsoft stock closed at $395.26 per share on Wednesday, being 5.57% down year-to-date. The stock then took off in the after-hours, reaching $429.60 per share at one point.

Several other tech stocks rose in the aftermath. Shares of chipmaker Nvidia jumped by 4%, Amazon’s stock rose by 3.08%, and shares of Meta Platforms jumped by 4.2%.

The post Microsoft Stock Soars on Better-Than-Expected Q3 Earnings appeared first on theprimarymarket.com.

Last week, DeepSeek presented its free-to-use AI model, DeepSeek-R1, which generated a massive buzz and rose to the top of the App Store charts over the weekend. The company says it developed the model in just two months at a cost of $6 million and that DeepSeek-R1 has on-par, if not superior, capabilities to similar models from U.S. companies like OpenAI and Meta.

 This prompted a widespread debate about the valuation of AI-centric companies and the amount of funds that tech giants are dedicating to developing AI technology. Investors responded with a sell-off that sent the shares of Nvidia, Meta, Microsoft, and Amazon plunging.

Nvidia, which controls up to 90% of the AI chips market, has taken the biggest hit and was down more than 11% in premarket trading.

“DeepSeek shows that it is possible to develop powerful AI models that cost less,” Vey-Sern Ling, managing director at Union Bancaire Privee, told Fortune. “It can potentially derail the investment case for the entire AI supply chain, which is driven by high spending from a small handful of hyperscalers.”

The post Tech Stocks Drop as China’s Startup DeepSeek Emerges as a Challenger to U.S. AI Dominance appeared first on theprimarymarket.com.

In response to such acquisition claims, Ubisoft declined to give any explicit details, instead stating that it “regularly reviews all its strategic options”.

Takeover claims heightened this month after Ubisoft’s shares fell to their lowest point in a decade. After its highly anticipated title, “Star Wars Outlaws,” underperformed following its release, the French video game publisher announced that it would delay the release of its latest “Assassin’s Creed” game, the franchise that the company is most well-known for.

The latest rise in Ubisoft shares comes after the company posted a 33.5% spike on Friday to $15.57.

The post Ubisoft to Review Strategic Options Amid Buyout Talks appeared first on theprimarymarket.com.

The release of key inflation data painted a positive economic outlook for the United States, raising bets that the Federal Reserve will start to lower interest rates as early as its September policy meeting. The introduction of interest rate cuts is expected to help fuel an appetite for riskier assets.

“We are close to the beginning of a US easing cycle with a 25 basis point September cut pretty much baked in,” chief investment officer at Gama Asset Management Rajeev De Mello observed.

Emerging currencies have also been on the rise, with the South African rand rising for a ninth straight day, its longest winning streak since 2011. Inflation has continued to cool since February, thereby providing the central bank with justification to lower interest rates.

The post Emerging Stocks Hit Four-Month High Amid Tech Rally appeared first on theprimarymarket.com.

Revenue for the three months was $33.47 billion, compared to an estimate of $34.95 billion surmised from three analysts surveyed by Zacks Investment Research. Net income for the period was $1.36 per share.

Since the start of the year, Alibaba shares have risen by 2.5%, marking a subtle turnaround from the 15% lost over the past 12 months. “Our results this quarter demonstrated our strategy at work,” the company stated in a press release. “Our focus on enhancing user experience by offering quality products at attractive prices with great service led to stabilizing market share.” The company added that it made $5.8 billion in share repurchases while adding that Alibaba is continuing to provide value to shareholders.

Alibaba paid particular attention to its investment strategy in its Taobao and Tmall Group businesses. The company explained that customer service, loyalty programs, and technology use are all areas of improvement that were focused on during the quarter.

The post Alibaba Posts Strong Q1 Financial Results appeared first on theprimarymarket.com.

Tencent’s revenue rise was largely driven by its resurging gaming business. In May, the company released the long-anticipated “Dungeon & Fighter Mobile” mobile game which surged to the top-grossing charts on Apple’s iOS platform in China as revealed by industry data. From April to June, domestic gaming revenue reached 34.6 billion yuan, a 9% rise, while international gaming revenue also rose 9% to 13.9 billion yuan.

HK $52.3 billion ($6.71 billion) was spent on share repurchases during the first six months of 2024, Tencent confirmed. The company has pledged to spend over HK$100 billion on share repurchases for the entirety of 2024, more than doubling the HK$49 billion spent the previous year.

Tencent’s second-quarter financial results show a stable economic recovery following two back-to-back quarters of falling revenue. This was largely spurred by the successful launch of several new video games by competitors, while Tencent was largely muted during this period.

The post Tencent Stock Soars as Gaming Business Rebounds appeared first on theprimarymarket.com.

iPhone maker Apple and chipmaker Nvidia have taken the biggest hit.

Apple’s shares have dropped by more than 10% and will go below $200 per share for the first time since May. Apple was also particularly hit hard by Berkshire Hathaway’s decision to cut its long-standing stake in the company by 50% last week.

Nvidia had it even worse, shedding 13%, and is set to open at $92.45 per share. The chipmaker’s decision to delay the production of its new AI chips for three months due to design flaws didn’t sit well with investors. After reaching an all-time high in June, Nvidia’s stock has been largely on a downward trajectory and is currently 21% down from those records.

Major factors for the fall of Magnificent Seven stocks, which all have deep ties with artificial intelligence technology, is the perceived weakness of the U.S. economy and potential recession, which are prompting investors to look for safer assets. Additionally, there are fears that the positive effects from the AI boom will take longer to show than expected.

The post Magnificent Seven Set to Lose $1 Trillion in Value After Major Sell-Off appeared first on theprimarymarket.com.

In Europe, the benchmark Stoxx 600 Index slumped by 1.1%, while the MSCI Asia Pacific Index tumbled by 1.7%. The MSCI Emerging Markets Index declined 0.8%.

Leading the big tech earnings reports were Tesla and Alphabet Inc., both of whom posted disappointing quarterly earnings. Kering SA, Nestle SA, and Stellantis NV followed, each failing to meet Wall Street estimates with their earnings.

Investors have broadly engaged in a sell-off of artificial intelligence-focused stocks; a major reversal from the AI frenzy that previously took charge this year. “There seems to be a broad reassessment on the cost and benefit calculus for the artificial intelligence ecosystem,” Lombard Odier Singapore Ltd macro strategist Homin Lee explained.

For the remainder of the week, investor focus will shift toward macroeconomic data. US GDP and initial jobless claims data are due later on Thursday, providing further insight into the economy’s health.

The post Global Stocks Collapse as Big Tech Earnings Disappoint appeared first on theprimarymarket.com.

Data from Bloomberg showed that revenue rose by 14% from the previous year’s figure of $74.6 billion, while earnings per share surged 31% year-over-year, with earnings of $1.44 per share in 2023.

Alphabet’s cloud business outperformed Wall Street expectations in the second quarter, with Google’s cloud revenue of $10.35 billion and operating income of $1.17 billion beating estimates of $10.1 billion and $982.2 million respectively. This was a significant year-over-year growth, with 2023’s Q2 figures coming in at $8 billion and $395 million respectively.

The company’s advertising revenue of $64.6 billion outperformed analysts’ expectations of $64.5 billion, while also exceeding last year’s figure of $58.1 billion. Still, YouTube’s ad revenue fell short of expectations, with $8.66 billion in revenue compared to expectations of $8.95 billion.

Following the release of its fiscal results, Alphabet’s shares declined by 3% in pre-market trading on Wednesday. Despite this decline, the company’s stocks are still up 30% for the year to date.

The post Alphabet Stocks Slip Despite Beating Earnings Estimates appeared first on theprimarymarket.com.

As a result of this financial performance, stocks in the music streaming company have surged, with Spotify shares gaining over 50% since the start of the year while rising 70% on a year-over-year basis.

The company’s financial success is largely tied to its spike in active users. Spotify’s total monthly active users for the quarter were 626 million; a 14% improvement from a year ago. Premium subscribers clocked in at 246 million, beating company expectations of 245 million and rising 12 from the previous year.

Looking toward the future, Spotify is focused on absolute growth. Having spent $1 billion over the past four years on podcast deals and studio acquisitions, Spotify announced that it is aiming to be more intentional in its spending, focusing more on distribution as opposed to exclusivity.

The post Spotify Surges After Reporting Record Profit appeared first on theprimarymarket.com.

Microsoft reported $3.46 in earnings per share, marking an 18% year-over-year increase, compared to an estimated $3.22. Its revenue jumped by 13% compared to the same period last year and came to $70.07 billion while Wall Street analysts expected $68.42 billion.

The company mostly benefited from the strong performance of its cloud business, which saw a 20% year-over-year increase. The revenue associated with its cloud computing platform Azure grew by 33%, with AI contributing 16 points to the growth. Analysts expected Azure’s revenue to jump by around 30% and AI to contribute 15.6 points of growth.

“We delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20% (up 22% in constant currency) year-over-year driven by continued demand for our differentiated offerings,” Microsoft executive vice president and CFO Amy Hood shared in a statement.

Microsoft stock closed at $395.26 per share on Wednesday, being 5.57% down year-to-date. The stock then took off in the after-hours, reaching $429.60 per share at one point.

Several other tech stocks rose in the aftermath. Shares of chipmaker Nvidia jumped by 4%, Amazon’s stock rose by 3.08%, and shares of Meta Platforms jumped by 4.2%.

The post Microsoft Stock Soars on Better-Than-Expected Q3 Earnings appeared first on theprimarymarket.com.

Last week, DeepSeek presented its free-to-use AI model, DeepSeek-R1, which generated a massive buzz and rose to the top of the App Store charts over the weekend. The company says it developed the model in just two months at a cost of $6 million and that DeepSeek-R1 has on-par, if not superior, capabilities to similar models from U.S. companies like OpenAI and Meta.

 This prompted a widespread debate about the valuation of AI-centric companies and the amount of funds that tech giants are dedicating to developing AI technology. Investors responded with a sell-off that sent the shares of Nvidia, Meta, Microsoft, and Amazon plunging.

Nvidia, which controls up to 90% of the AI chips market, has taken the biggest hit and was down more than 11% in premarket trading.

“DeepSeek shows that it is possible to develop powerful AI models that cost less,” Vey-Sern Ling, managing director at Union Bancaire Privee, told Fortune. “It can potentially derail the investment case for the entire AI supply chain, which is driven by high spending from a small handful of hyperscalers.”

The post Tech Stocks Drop as China’s Startup DeepSeek Emerges as a Challenger to U.S. AI Dominance appeared first on theprimarymarket.com.

In response to such acquisition claims, Ubisoft declined to give any explicit details, instead stating that it “regularly reviews all its strategic options”.

Takeover claims heightened this month after Ubisoft’s shares fell to their lowest point in a decade. After its highly anticipated title, “Star Wars Outlaws,” underperformed following its release, the French video game publisher announced that it would delay the release of its latest “Assassin’s Creed” game, the franchise that the company is most well-known for.

The latest rise in Ubisoft shares comes after the company posted a 33.5% spike on Friday to $15.57.

The post Ubisoft to Review Strategic Options Amid Buyout Talks appeared first on theprimarymarket.com.

The release of key inflation data painted a positive economic outlook for the United States, raising bets that the Federal Reserve will start to lower interest rates as early as its September policy meeting. The introduction of interest rate cuts is expected to help fuel an appetite for riskier assets.

“We are close to the beginning of a US easing cycle with a 25 basis point September cut pretty much baked in,” chief investment officer at Gama Asset Management Rajeev De Mello observed.

Emerging currencies have also been on the rise, with the South African rand rising for a ninth straight day, its longest winning streak since 2011. Inflation has continued to cool since February, thereby providing the central bank with justification to lower interest rates.

The post Emerging Stocks Hit Four-Month High Amid Tech Rally appeared first on theprimarymarket.com.

Revenue for the three months was $33.47 billion, compared to an estimate of $34.95 billion surmised from three analysts surveyed by Zacks Investment Research. Net income for the period was $1.36 per share.

Since the start of the year, Alibaba shares have risen by 2.5%, marking a subtle turnaround from the 15% lost over the past 12 months. “Our results this quarter demonstrated our strategy at work,” the company stated in a press release. “Our focus on enhancing user experience by offering quality products at attractive prices with great service led to stabilizing market share.” The company added that it made $5.8 billion in share repurchases while adding that Alibaba is continuing to provide value to shareholders.

Alibaba paid particular attention to its investment strategy in its Taobao and Tmall Group businesses. The company explained that customer service, loyalty programs, and technology use are all areas of improvement that were focused on during the quarter.

The post Alibaba Posts Strong Q1 Financial Results appeared first on theprimarymarket.com.

Tencent’s revenue rise was largely driven by its resurging gaming business. In May, the company released the long-anticipated “Dungeon & Fighter Mobile” mobile game which surged to the top-grossing charts on Apple’s iOS platform in China as revealed by industry data. From April to June, domestic gaming revenue reached 34.6 billion yuan, a 9% rise, while international gaming revenue also rose 9% to 13.9 billion yuan.

HK $52.3 billion ($6.71 billion) was spent on share repurchases during the first six months of 2024, Tencent confirmed. The company has pledged to spend over HK$100 billion on share repurchases for the entirety of 2024, more than doubling the HK$49 billion spent the previous year.

Tencent’s second-quarter financial results show a stable economic recovery following two back-to-back quarters of falling revenue. This was largely spurred by the successful launch of several new video games by competitors, while Tencent was largely muted during this period.

The post Tencent Stock Soars as Gaming Business Rebounds appeared first on theprimarymarket.com.

iPhone maker Apple and chipmaker Nvidia have taken the biggest hit.

Apple’s shares have dropped by more than 10% and will go below $200 per share for the first time since May. Apple was also particularly hit hard by Berkshire Hathaway’s decision to cut its long-standing stake in the company by 50% last week.

Nvidia had it even worse, shedding 13%, and is set to open at $92.45 per share. The chipmaker’s decision to delay the production of its new AI chips for three months due to design flaws didn’t sit well with investors. After reaching an all-time high in June, Nvidia’s stock has been largely on a downward trajectory and is currently 21% down from those records.

Major factors for the fall of Magnificent Seven stocks, which all have deep ties with artificial intelligence technology, is the perceived weakness of the U.S. economy and potential recession, which are prompting investors to look for safer assets. Additionally, there are fears that the positive effects from the AI boom will take longer to show than expected.

The post Magnificent Seven Set to Lose $1 Trillion in Value After Major Sell-Off appeared first on theprimarymarket.com.

In Europe, the benchmark Stoxx 600 Index slumped by 1.1%, while the MSCI Asia Pacific Index tumbled by 1.7%. The MSCI Emerging Markets Index declined 0.8%.

Leading the big tech earnings reports were Tesla and Alphabet Inc., both of whom posted disappointing quarterly earnings. Kering SA, Nestle SA, and Stellantis NV followed, each failing to meet Wall Street estimates with their earnings.

Investors have broadly engaged in a sell-off of artificial intelligence-focused stocks; a major reversal from the AI frenzy that previously took charge this year. “There seems to be a broad reassessment on the cost and benefit calculus for the artificial intelligence ecosystem,” Lombard Odier Singapore Ltd macro strategist Homin Lee explained.

For the remainder of the week, investor focus will shift toward macroeconomic data. US GDP and initial jobless claims data are due later on Thursday, providing further insight into the economy’s health.

The post Global Stocks Collapse as Big Tech Earnings Disappoint appeared first on theprimarymarket.com.

Data from Bloomberg showed that revenue rose by 14% from the previous year’s figure of $74.6 billion, while earnings per share surged 31% year-over-year, with earnings of $1.44 per share in 2023.

Alphabet’s cloud business outperformed Wall Street expectations in the second quarter, with Google’s cloud revenue of $10.35 billion and operating income of $1.17 billion beating estimates of $10.1 billion and $982.2 million respectively. This was a significant year-over-year growth, with 2023’s Q2 figures coming in at $8 billion and $395 million respectively.

The company’s advertising revenue of $64.6 billion outperformed analysts’ expectations of $64.5 billion, while also exceeding last year’s figure of $58.1 billion. Still, YouTube’s ad revenue fell short of expectations, with $8.66 billion in revenue compared to expectations of $8.95 billion.

Following the release of its fiscal results, Alphabet’s shares declined by 3% in pre-market trading on Wednesday. Despite this decline, the company’s stocks are still up 30% for the year to date.

The post Alphabet Stocks Slip Despite Beating Earnings Estimates appeared first on theprimarymarket.com.

As a result of this financial performance, stocks in the music streaming company have surged, with Spotify shares gaining over 50% since the start of the year while rising 70% on a year-over-year basis.

The company’s financial success is largely tied to its spike in active users. Spotify’s total monthly active users for the quarter were 626 million; a 14% improvement from a year ago. Premium subscribers clocked in at 246 million, beating company expectations of 245 million and rising 12 from the previous year.

Looking toward the future, Spotify is focused on absolute growth. Having spent $1 billion over the past four years on podcast deals and studio acquisitions, Spotify announced that it is aiming to be more intentional in its spending, focusing more on distribution as opposed to exclusivity.

The post Spotify Surges After Reporting Record Profit appeared first on theprimarymarket.com.