Microsoft And Google Earnings Highlights: See How The Tech Giants Compare
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Microsoft And Google Earnings Highlights: See How The Tech Giants Compare
Benzinga PreMarket Prep 8:00AM ET- 9:00AM ET BenzingaTV on YouTube.
Microsoft And Google Earnings Highlights: See How The Tech Giants Compare
Transcript
00:00 Let's get right to it. Let's go to the numbers here. And of
00:03 course, it's going to be a lot based on the cloud numbers. But
00:07 that's what I would say to pay attention in both reports.
00:09 Right? Microsoft's EPS here $2.99 beats a $2.50 estimate
00:15 sales of 56.52 billion beat the 51.4 billion estimate.
00:20 Microsoft said they saw Q2 intelligent cloud revenue at
00:24 25.1 billion to 25.4 billion. They said they see Q2 more
00:29 personal computing revenues of 16.5 to 16.9. The intelligent
00:35 cloud segment produced 24.26 billion in revenue up 19% above
00:41 the 23.49 billion consensus. Azure jumped about 29% during
00:47 the quarter higher than 26% consensus here. And just to
00:51 mention, of course, open AI also now has 18,000 customers up
00:57 from 11,000 customers in July. So actually, showing me some
01:02 numbers there on AI not much revenue, but at least customers
01:06 joining their right alphabet coming in here Q3 EPS at $1.55
01:12 beats the $1.45 estimate sales of 76.69 billion beat the 75.94
01:18 billion estimate. Their Google revenue services at 67.99
01:24 billion beat the estimate their Google advertising revenue beat
01:28 estimates. YouTube ad revenues also beating estimates where
01:33 they struggled right Google disappointed on Google Cloud
01:36 revenues, which were at 8.41 billion and missed the estimate
01:40 of 8.6 billion. Of course, this is if you look at the over year
01:46 over year number, this isn't that bad, despite, of course, it
01:49 was at 6.9 billion a year ago. So overall, everyone's saying
01:55 that those Google Cloud numbers is really what was focused on.
01:59 But I would also state I mean, compared to a year ago, they're
02:02 still gaining
02:03 so much to digest there. Maybe we shouldn't have tackled these
02:07 together.
02:08 You asked,
02:10 the relationship is so strong, meaning that these are, you
02:14 know, two of obviously the magnificent seven, two stocks
02:18 that have held up the entire market. And I mean, Microsoft
02:21 just start there, they were doing some really heavy lifting
02:24 last night, Joel, because the stocks wanted to go down. I
02:28 mean, if you see the S&Ps, we did pop 20 handles on that
02:32 initial Microsoft print, then we're waiting patiently for the
02:35 guidance. And you know, I'm looking at the S&P trading red
02:37 and I'm like, what happens if Microsoft warns that we're going
02:40 to really be red? Well, Microsoft actually guided higher
02:44 and you can see around just after six o'clock, the big spike
02:47 up to $350 that was on the guidance and then for whatever
02:51 reason, they pulled the rug, brought it all the way down like
02:54 338. That was a wild candle on that guidance. And then it just
02:58 kind of meandered and stayed in the same spot. So I think
03:01 everything was pretty good with the Microsoft quarter like very
03:04 good. Again, it may be buyer exhaustion. I don't know what it
03:08 is. Why? You know, but again, the stocks holding up fairly
03:11 well 14 points. So can't argue with Microsoft. It pulled a
03:14 Netflix, kind of blew it away. Stocks up, should be up on those
03:18 numbers. The concern here is really the S&P and you can blame
03:22 Google for it and say, well, Google knocked it back down. And
03:26 that is the case. I mean, if Google would have not reported,
03:29 I think the S&P would be higher. But you know, you look under the
03:33 hood here and there's a lot of other damage in other sectors
03:36 again here this morning. So tech in itself, despite the Microsoft
03:40 huge beat is taking the lead from Google. For whatever
03:44 reason, this market is focusing on Google's not so great quarter
03:48 instead of Microsoft.
03:49 Man, this is I think just you have to throw out the high and
03:55 throw out the low in this at least for right now getting over
03:58 350. You know, that was if you were able to catch that. Don't
04:02 know if we're going to get there in a regular session. This
04:05 number we're pretty close to it. Right now I'll use 345. There
04:09 was one daily high in that area. It fills a gap also for from
04:15 July 25. So above that, as you can see, you know, on the
04:19 dailies, it's pretty wide open. So I keep an eye on 345. And
04:24 then on the downside here, and I'm being pretty tight after a
04:26 big range, it looks like someone's been supporting the
04:29 stock at like the 341 50 area. So if you lose that, or if the
04:34 S&P is, you know, start on a, you know, a big downturn, I take
04:38 a look at that. So it's messy. I mean, it consolidated before
04:42 the report and had both a pop and drop. Google is, you know,
04:47 the street was leaning the wrong way into the report. And here's
04:51 the gap from the, you know, from the last earnings report. And it
04:57 hasn't got to 127 yet. So I think that's where your support
05:01 is. And as far as resistance goes, I mean, you might be a
05:06 while before you see the the bottom of yesterday's range at
05:10 138 75.
05:12 They absolutely need to blow it away because Google being only
05:15 10 points off its all time high. Yeah, one of the most resilient
05:20 stocks that we have in this market, there are very few
05:23 stocks in this market that are within, you know, 10% of their
05:28 all time high. And it's the mainly the mega caps. And that's
05:30 why the overall market is within 10%. I believe the S&P is still
05:33 within 10% of its all time high close if not now even above 15%
05:37 off. But I Google just, I mean, it had to blow it away. And you
05:43 know, they didn't, you know, obviously, in the numbers and
05:45 the growth slowing a little bit, you know, certain areas there in
05:48 the cloud revenue. So that's, that's why the stock is trading