Key Earnings Reports from Major Tech Firms
On April 29, 2023, four prominent companies—Microsoft, Amazon, Alphabet (Google), and Meta Platforms—reported their earnings after the market closed. Key highlights include Microsoft reporting an adjusted earnings per share (EPS) of $4.27 on $82.89 billion in revenue, both exceeding estimates. Amazon posted EPS of $2.78 and revenue of $181.5 billion, both surpassing analysts’ expectations. In contrast, Alphabet’s adjusted EPS of $2.62 fell short by a penny, although revenue reached nearly $110 billion, exceeding predictions. Meta recorded adjusted EPS of $7.31 and revenues of approximately $56.3 billion, also beating estimates.
The companies have increased their capital expenditure guidance for the year, signaling ongoing investments in AI infrastructure. Microsoft’s Azure cloud revenue surged nearly 40% year-over-year, while Google Cloud reported a 63% increase. Despite these strong results, Wall Street has high expectations, and the market reacted variably; Alphabet’s stock rose nearly 8%, while Amazon, Microsoft, and Meta saw declines of about 1.7%, 5%, and 9%, respectively.
Free cash flow has been impacted by rising capital expenditures; Amazon’s dropped to approximately $1.2 billion from nearly $26 billion year-over-year. This trend has raised scrutiny regarding the performance needed to justify substantial spending in the evolving AI landscape.
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