Google Cloud Growth Slows Down
Plus, Microsoft Azure outperforms.
Today is Wednesday, October 25, 2023.
The Early Bird Index today is 53.45.
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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.
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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)
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