Google vs. Microsoft
The AI race between technology giants.
Today is Wednesday, April 26, 2023.
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Google’s Changing Landscape
Amid the artificial intelligence battle between technology giants, shares of Google parent Alphabet (Nasdaq: GOOGL) ticked up by 1.68% in Tuesday’s after-hours trading due to solid financial results.
Financials: Alphabet reported earnings of $1.23 per share in the past quarter, which was better than expected. But revenue hit $68.01 billion, which was below estimates.
Details: Revenue for Google Cloud went up from $5.8 billion in the same period last year to $7.4 billion in the quarter. Google Cloud is now finally profitable on paper, but that’s because the company reclassified some costs.
Also: Revenue for YouTube hit $6.6 billion, which is lower than the same period last year but better than expected. And Alphabet issued a $70 billion stock buyback to help with the price.
Final Thoughts: Google is up 16% this year. As the company’s businesses evolve (and advertising revenue shrinks), Google is trying to find its footing in AI. Some believe that Google is lagging behind competitors in AI.
Notable Earnings Today: Meta Platforms (Nasdaq: META), Boeing (NYSE: BA), Humana (NYSE: HUM), Roku (Nasdaq: ROKU), Hilton (NYSE: HLT), ServiceNow (NYSE: NOW), Hess (NYSE: HESS), Pioneer Natural Resources (NYSE: PXD), Teck Resources (NYSE: TECK), Teladoc (NYSE: TDOC), Automatic Data (Nasdaq: ADP), Align Technology (Nasdaq: ALGN), Thermo Fisher (NYSE: TMO), United Rentals (NYSE: URI), General Dynamics (NYSE: GD), KLA Corporation (Nasdaq: KLAC), Boston Scientific (NYSE: FFIV), Annaly Capital Management (NYSE: NLY), Cenovus Energy (NYSE: CVE), Enovix (Nasdaq: ENVX), AllianceBernstein (NYSE: AB), American Tower (NYSE: AMT), American Water Works (NYSE: AWK), AvalonBay (NYSE: AVB), Avery Dennison (NYSE: AVY), C.H. Robinson Worldwide (Nasdaq: CHRW), Canadian Pacific (NYSE: CP), Churchill Downs (Nasdaq: CHDN), CME Group (Nasdaq: CME), Dover (NYSE: DOV), eBay (Nasdaq: EBAY), Edwards Lifesciences (NYSE: EW), Entergy (NYSE: ETR), EQT (NYSE: EQT), Ethan Allen (NYSE: ETD), Graco (NYSE: GGG), Helen of Troy (Nasdaq: HELE), Lending Club (NYSE: LC), Masco (NYSE: MAS), Mattel (Nasdaq: MAT), Meritage Homes (NYSE: MTH), Molina Healthcare (NYSE: MOH), Norfolk Southern (NYSE: NSC), Old Dominion (Nasdaq: ODFL), O'Reilly Automotive (Nasdaq: ORLY), Otis Worldwide (NYSE: OTIS), Owens Corning (NYSE: OC), Penske Auto (NYSE: PAG), Pilgrim's Pride (Nasdaq: PPC), Raymond James (NYSE: RJF), Ryder System (NYSE: R), Silicon Labs (Nasdaq: SLAB), STAG Industrial (NYSE: STAG), Sun Communities (NYSE: SUI), Teledyne Tech (NYSE: TDY), Teradyne (Nasaq: TER), Waste Management (NYSE: WM), Wyndham Hotels & Resorts (NYSE: WH).
Notable IPOs Today: Burke & Herbert Financial Services Corp. Common Stock (Nasdaq: BHRB), GigCapital 5, Inc. Common Stock (Nasdaq: GIA), Columbia ETF Trust I (NYSE Arca: CRED).
Notable Equity Crowdfunding Campaigns Ending Today: Hospy (Netcapital), Full Circle Brewing (StartEngine).
Notable Economic Events Today: Core PCE Price Index (8:30 a.m. ET), PCE Price Index (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), Employment Cost Index (8:30 a.m. ET), Chicago PMI (9:45 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).
Microsoft Eyes AI Dominance
Microsoft (Nasdaq: MSFT) CEO Satya Nadella bragged about the company’s AI capabilities during Tuesday’s earnings release, causing shares to surge by 8.45%.
Financials: Microsoft reported earnings of $2.45 per share in the past quarter and revenue of $52.86 billion; both were better than expected.
Details: Revenue of Azure and cloud services grew by 27%, which was expected, but this also represents a slowdown in growth.
Final Thoughts: Consumer product revenue went up by only 1% in the quarter. Microsoft’s stock is up nearly 15% in 2023 thanks to its growing AI potential.
Chipotle’s Burrito Bounce
Chipotle (NYSE: CMG) leaped 7.71% in Tuesday’s after-hours trading thanks to strong financial results.
Final Thoughts: The stock is already up 30% this year as Chipotle plans for expansion.
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Trends to Watch
Credit Card Craze: Visa earnings top expectations as payment volume rises 10% (MarketWatch)
Slowdown Food: McDonald’s Earnings Beat Forecasts but Management Is Cautious (Barron’s)
It Could Rise: Bitcoin Could Be Poised for a Rebound (CoinDesk)
Illuminating: Illumina unveils plans to cut costs as it faces shrinking margins (CNBC)
Driving Higher: GM Raises 2023 Profit Outlook, Kills Off Chevy Bolt EV (The Wall Street Journal)
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