Key Financial Insights on Alphabet and Microsoft
Alphabet (NASDAQ: GOOG, GOOGL) reported a significant increase in its third-quarter services revenue, reaching $87 billion, a 14% year-over-year rise. The company’s AI features, such as AI Mode, have already attracted 75 million daily active users and contributed to doubled search volume since Q2. With its competitive position solidified in the AI and cloud markets, Alphabet anticipates earnings growth at an annualized rate of 15%, projecting a share price of $600 by 2030 based on current P/E ratios.
Microsoft (NASDAQ: MSFT) experienced an 18% increase in quarterly revenue, totaling $77.7 billion, with a remaining performance obligations figure of $392 billion, up 51% year-over-year. The company has over 400 million paid subscribers for Microsoft 365 and reports 900 million monthly active users engaging with its AI features. Analysts predict a 13% annualized earnings growth for Microsoft over the next several years, substantiating its valuation at a forward P/E of 30.
