financemarket.news

 

 

 

Tech earnings not impressing Wall Street


The Nasdaq MarketSite in New York, June 9, 2023.

Michael Nagle | Bloomberg | Getty Images

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Asia stocks mixed
Asia-Pacific
markets were mixed Wednesday ahead of the interest rate decision from the U.S. Federal Reserve. But Australian stocks smashed all-time records to set a fresh high. Overnight, U.S. stocks also closed mixed. The benchmark S&P 500 closed near the flatline, while the Dow Jones Industrial Average closed 0.35% higher, marking its seventh record close this year. The tech-heavy Nasdaq Composite retreated 0.76%.

China factory activity dips
China’s factory activity shrank for the fourth straight month in January, official data showed as the economy continues to struggle to regain momentum. The official manufacturing purchasing managers’ index rebounded to 49.2 as expected, from 49 in December, a six-month low.

Alphabet, Microsoft disappoint
Wall Street wasn’t too impressed with the quarterly results from tech giants Alphabet and Microsoft. Both companies reported better-than-expected revenue and earnings, yet the stocks sold off in extended trading.

Judge voids Musk’s pay package
A Delaware judge has voided the $56 billion pay package of Tesla CEO Elon Musk, ruling that the company’s board of directors failed to prove “that the compensation plan was fair.” Shares of Tesla tumbled more than 2% in extending trading.

[PRO] U.S. elections stock picks
Goldman Sachs highlighted the potential impact the U.S. presidential election could have on global markets through changes in regulation, taxation and other government policies. The Wall Street bank picked the stocks to play.

 

The bottom line

Tech giants Microsoft and Alphabet earnings both managed to beat top and bottom line estimates. Still, that wasn’t good enough for Wall Street.  

Google parent Alphabet posted its fastest quarter for revenue growth since early 2022, with sales up 13% from $76.05 billion a year earlier. Earnings per share were $1.64, beating the consensus LSEG estimate of $1.59 a share.

But markets didn’t seem impressed as investors sent the stock tumbling. Alphabet shares slid nearly 6% in extended trading on Tuesday. 

Part of the reason was the company’s soft ad revenue, which came in at $65.52 billion — short of analysts’ expectations for $65.94 billion, per StreetAccount. 

Software giant Microsoft also posted results that topped estimates but its outlook was a bit light.

Cloud growth came in stronger than expected as revenue from Azure and other cloud services rose 30% on a yearly basis. Microsoft now boasts 53,000 Azure AI customers, and one-third of them are new to Azure in the past year, CEO Satya Nadella said on the call.

Yet, Microsoft shares edged lower in after-hours trading despite the positive results….



Read More: Tech earnings not impressing Wall Street

Leave a comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.