YouTube Ruins Google's Results

Today is Wednesday, October 26, 2022.

New to this newsletter? Sign up here.

YouTube Ruins Google's Results

Revenue for YouTube declined in the earnings for Google parent Alphabet (Nasdaq: GOOGL) on Tuesday, which resulted in the stock dropping 6.58% in after-hours trading.

Financials: Alphabet reported earnings of $1.06 per share and revenue of $69.09 billion; both were below estimates.

Ad Miss: Ad revenue for YouTube dropped from $7.20 billion in the same period last year to $7.07 billion in the quarter. Revenue for Google advertising ticked up slightly from the same period last year, but growth slowed.

In the Cloud: While not a big part of Google’s business, cloud revenue increased from $4.9 billion in the same period last year to $6.8 billion in the quarter.

Stock Price: Alphabet’s stock is down 27% this year, but is up 6% in the last 30 days.

Final Thoughts: YouTube’s drop in ad revenue and Google advertising’s revenue growth slowdown are both symptoms of the weak online ad market right now.

Notables

Notable Earnings Today: Boeing (NYSE: BA), Meta Platforms (Nasdaq: META), Waste Management (NYSE: WM), Ford Motor (NYSE: F), Bristol Myers Squibb (NYSE: BMY), Teladoc Health (NYSE: TDOC), Kraft Heinz (Nasdaq: KHC), ServiceNow (NYSE: NOW), Hilton Worldwide Holdings (NYSE: HLT),  Hess (NYSE: HES), Annaly Capital Management (NYSE: NLY), General Dynamics (NYSE: GD), Wolfspeed (NYSE: WOLF), Harley-Davidson (NYSE: HOG), KLA Corporation (Nasdaq: KLAC), Wingstop (Nasdaq: WING), O'Reilly Automotive (Nasdaq: ORLY), Agnico-Eagle Mines (NYSE: AEM), Automatic Data (Nasdaq: ADP), Boot Barn Holdings (NYSE: BOOT), Boston Scientific (NYSE: BSX), Churchill Downs (Nasdaq: CHDN), Coursera (NYSE: COUR), Digital Realty Trust (NYSE: DLR), Garmin (NYSE: GRMN), Lending Club (NYSE: LC), Masco (NYSE: MAS), Norfolk Southern (NYSE: NSC), Olin (NYSE: OLN), Owens Corning (NYSE: OC), Patterson-UTI (Nasdaq: PTEN), Pilgrim's Pride (Nasdaq: PPC), Ryder System (NYSE: R), Seagate Technology (Nasdaq: STX), Spirit Airlines (NYSE: SAVE), Thermo Fisher Scientific (NYSE: TMO), Upwork (Nasdaq: UPWK), V.F. Corp (NYSE: VFC).

Notable IPOs Today: Mobileye Global Inc. Class A Common Stock (Nasdaq: MBLY), Safeguard Scientifics, Inc. Common Stock (Nasdaq: SFE), First Trust Growth Strength ETF (Nasdaq: FTGS).

Notable Equity Crowdfunding Campaigns Ending Today: MyDentalWig (PicMii).

Notable Economic Events Today: Goods Trade Balance (8:30 a.m. ET), Retail Inventories (8:30 a.m. ET), New Home Sales (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).

Microsoft’s Cloud Growth Slows

Photo by Turag Photography / Unsplash

The earnings results were fine for Microsoft (Nasdaq: MSFT), but concerns over its cloud sent the stock down 6.65% in after-hours trading on Tuesday.

Financials: Microsoft reported earnings of $2.35 per share and revenue of $50.1 billion; both were better than expected.

Cloudy: Revenue for Azure (Microsoft’s cloud) is up 35%, but that was below estimates.

Final Thoughts: Net income was down and the revenue guidance for the quarter was light. Operating income increased in the quarter.

Visa Sees Strong Consumer Payments

Shares of Visa (NYSE: V) ticked up 0.84% after-hours trading on Tuesday after the financial giant posted positive earnings results.

Final Thoughts: Visa also issued a $12 billion stock buyback and increased the dividend by 20%. Despite macroeconomic uncertainty, Visa says consumer payments are strong.

Trends to Watch

Lightning Shock: CashApp adds support for Bitcoin Lightning Network (Cointelegraph)

Thank you for reading!

Forward to a friend and tell them to sign up here.

Want more investing tips? Listen to the podcast.

Questions or comments? Hit reply to reach out.