- Early Bird
- Posts
- Google Cloud Growth Slows Down
Google Cloud Growth Slows Down
Plus, Microsoft Azure outperforms.
Today is Wednesday, October 25, 2023.
The Early Bird Index today is 53.45.
New to this newsletter? Sign up here.
Google Cloud Growth Slows Down
Despite posting better-than-expected financial earnings results, Google parent Alphabet (Nasdaq: GOOGL) declined by 6.07% in after-hours trading on Tuesday.
Financials: Alphabet reported earnings of $1.55 per share in the past quarter and revenue of $76.69 billion; both were better than expected.
Powering the Story: The problem is that Google Cloud reported revenue of $8.41 billion, which was lower than expected. Google Cloud is still growing but at a slower rate than last year.
Final Thoughts: Despite the slowdown in Google Cloud, there’s a lot that investors have to look forward to. The ad business grew and the company’s artificial intelligence business is promising.
Dollar Flight Club (Sponsored)
Dollar Flight Club is offering their Lifetime Membership for $129 (usually $1,690) for the next 24 hours. Lifetime Members get up to 90% off all flights for life! Fly roundtrip to Paris from $320, Hawaii from $197, and more. Get 93% off lifetime or try for free now.
Notables
Notable Earnings Today: Meta Platforms (Nasdaq: META), Boeing (NYSE: BA), Thermo Fisher Scientific (NYSE: TMO), International Business Machines (NYSE: IBM), T-Mobile US (Nasdaq: TMUS), ServiceNow (NYSE: NOW), Wyndham Hotels & Resorts (NYSE: WH), Hilton (NYSE: HLT), Whirlpool (NYSE: WHR), Automatic Data Processing (Nasdaq: ADP), O'Reilly Automotive (Nasdaq: ORLY), LendingClub (NYSE: LC), Mattel (Nasdaq: MAT), Align Technology (Nasdaq: ALGN), Western Union (NYSE: WU), Old Dominion Freight Line (Nasdaq: ODFL), Ethan Allen (NYSE: ETD), Canadian Pacific Kansas City (NYSE: CP), KLA Corp. (Nasdaq: KLAC), Vertiv (NYSE: VRT), Baker Hughes (Nasdaq: BKR), IMAX (NYSE: IMAX), CNX Resources (NYSE: CNX), Annaly Capital Management (NYSE: NLY), General Dynamics (NYSE: GD), Edwards Lifesciences (NYSE: EW), Lithia Motors (NYSE: LAD), Quantumscape (NYSE: QS), Agnico-Eagle Mines (NYSE: AEM), Alamos (NYSE: AGI), Antero Resources (NYSE: AR), AvalonBay (NYSE: AVB), Avery Dennison (NYSE: AVY), BOK Financial (Nasdaq: BOKF), Chemed (NYSE: CHE ), Churchill Downs (Nasdaq: CHDN), CME Group (Nasdaq: CME), Community Health (NYSE: CYH), EQT Corp. (NYSE: EQT), Equinix (Nasdaq: EQIX), Everest Group (NYSE: EG), Evercore (NYSE: EVR), Flex (Nasdaq: FLEX), Flowserve (NYSE: FLS), Fortive (NYSE: FTV), Globe Life (NYSE: GL), Graco (NYSE: GGG), Greenbrier (NYSE: GBX), Invitation Homes (NYSE: INVH), Kilroy Realty (NYSE: KRC), Molina Healthcare (NYSE: MOH), Moody's (NYSE: MCO), Mr. Cooper Group (Nasdaq: COOP), MSC Industrial (NYSE: MSM), Navient (Nasdaq: NAVI), Netgear (Nasdaq: NTGR), Norfolk Southern (NYSE: NSC), Otis Worldwide (NYSE: OTIS), Owens Corning (NYSE: OC), Pilgrim's Pride (Nasdaq: PPC), Ryder System (NYSE: R), SEI Investments (Nasdaq: SEIC), Sun Communities (NYSE: SUI), Sunnova Energy (NYSE: NOVA), Taylor Morrison Home (NYSE: TMHC), Teledyne Technologies (NYSE: TDY), Teradyne (Nasdaq: TER), Travel + Leisure (NYSE: TNL), United Rentals (NYSE: URI), Universal Health (NYSE: UHS), Valmont Industries (NYSE: VMI), VICI Properties (NYSE: VICI), Viking Therapeutics (Nasdaq: VKTX), Wabash National (NYSE: WNC), Weatherford (Nasdaq: WFRD), WesBanco (Nasdaq: WSBC), West Fraser (NYSE: WFG).
Notable IPOs Today: Mach Natural Resources LP (NYSE: MNR).
Notable Equity Crowdfunding Campaigns Ending Today: Airthium (Wefunder), Bad Feeling (Wefunder).
Notable Economic Events Today: Building Permits (8:00 a.m. ET), New Home Sales (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).
Microsoft Azure Outperforms Expectations
Microsoft (Nasdaq: MSFT) jumped 3.95% in after-hours trading on Tuesday after the technology giant posted strong financial results.
Financials: Microsoft reported earnings of $2.99 per share in the past quarter and revenue of $56.5 billion; both were better than expected.
Powering the Story: Azure, Microsoft’s cloud services business, grew by 29%. This was significantly better than expected.
Final Thoughts: Across the board, Microsoft had a strong quarter. One slow spot was LinkedIn, where revenue only grew by 8%. Still, Azure was a big winner for the company.
Texas Instruments Reports Weak Revenue
Texas Instruments (Nasdaq: TXN) fell by 4.57% in after-hours trading on Tuesday after the company reported that its revenue for the quarter was lower than anticipated.
Final Thoughts: The company’s guidance for the current quarter also missed estimates. Texas Instruments is down nearly 10% this year.
Trends to Watch
Removal: Bitcoin Drops 3% After BlackRock BTC ETF Pulled From DTCC's Website (CoinDesk)
Up and Down: Snap shares seesaw amid concerns about the war’s effect on advertising (CNBC)
Giving Credit: Visa Beats Profit Estimates, Plans $25 Billion Stock Buyback (Bloomberg)
Feeling Sick: Teladoc brings in $660M in Q3 revenue, reaches 90M members as executives focus on boosting bottom line (Fierce Healthcare)
Full Stop: California DMV suspends Cruise’s driverless taxis in S.F. after company withheld car crash footage (San Francisco Chronicle)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Be social: Like our Facebook page and follow us on Twitter.
Want more investing tips? Listen to the podcast.
Show Your Support: Buy Me a Coffee.
Questions or comments? Hit reply to reach out.