First Wave – Big Tech Earnings 💻

First Wave – Big Tech Earnings

Tuesday’s tech earnings differed from the transportation earnings because they were extremely positive. The two heavyweights were Microsoft and Google, two Big Tech companies that have recently emerged to become fierce competitors in the artificial intelligence space due to the success of ChatGPT, a product from OpenAI that Microsoft is partnered with via investment.

Microsoft impressed investors with their quarterly earnings as profit and sales topped expectations, earning $2.45 per share with sales rising to $52.9 billion. Once again, cloud computing powered Microsoft through the quarter with sales from Azure and Office rising by 22 percent to $28.5 billion, showing that demand for the software was still present even as many decreased spending in the wake of recent economic conditions. Another highlight of the earnings report was the rise in artificial intelligence over at Microsoft, with an extremely upbeat outlook for the future of Bing and its share in the internet search engine market. The business looks to invest more into OpenAI and utilize the profits from Azure and AI to invest in both, setting up Microsoft for further growth as one of the leaders of the AI space.

Alphabet earned $1.17 per share and reported revenue of $69.7 billion, with both figures beating analyst expectations. Cloud was also one of the biggest highlights for the company, with Google Cloud’s revenue growing by 28 percent, and YouTube managed to beat ad revenue with $6.69 billion coming in. Similarly, to Microsoft, Google underwent mass layoffs to cut costs which was displayed in their quarterly results. AI has been a major talking point for the company, and not in the positive way like Microsoft. Losses related to AI totaled $3.3 billion as there have been questionable cases like Bard, the competitor to ChatGPT that failed to compete. For future AI strategy and development, they are merging the Brain Unit from Google Research and DeepMind, and they are playing catch-up from here knowing that they can create the next big innovation in the AI world.

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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

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