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Google Cloud Growth Slows Down

Google Cloud Growth Slows Down

Plus, Microsoft Azure outperforms.

Early Bird
October 25, 2023

Photo by Kai Wenzel on Unsplash

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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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

Photo by Johnyvino Photo Library on Unsplash

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.