After the big rally for the Nasdaq this year,
tech investors have approached earnings season with some trepidation. Shares of
Meta Platforms have fallen for seven consecutive days.
The stock is down 6% over that stretch, though it's still up 73% year to date.
Meta reports Wednesday afternoon.
But first, tech holders are breathing a sigh
of relief tonight after reports from Microsoft and Alphabet.
Both tech giants reported strong results for their March quarters. Of
particular note, Microsoft's Azure cloud business grew 31% during the three
months ending March, slightly above Wall Street estimates. "The upbeat
results are a rare positive sign on IT spending as tech earnings season moves
into full gear," Barron's Eric
Savitz wrote this
evening.
Eric notes that Microsoft offered a
better-than-expected June-quarter outlook across its various business units
tonight, including for its cloud, PC, and productivity segments.
Microsoft shares were up 8% in late trading.
Meanwhile, Alphabet's advertising revenue
declined slightly in the latest quarter but the search giant still managed to
beat earnings and revenue estimates. The company also said its board had
approved an additional $70 billion worth of stock buybacks. That's the kind of
cash repurchase that reminds investors about the power of tech's business
models and could calm nerves in the days to come.
Connor Smith has more on Alphabet's results here.
In addition to Meta's report tomorrow, Amazon.com
is on tap for Thursday.
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