Revenues rose at Microsoft and Alphabet, but disappointed at Google Cloud

The two tech giants reported better-than-expected overall revenue in the most recent quarter — although growth in Google’s cloud computing division slowed and fell short of forecasts.

By Daniel Baines, Business Correspondent


Wednesday, October 25, 2023 at 01:13, UK

Both Microsoft and Google’s parent company, Alphabet, both reported higher-than-expected earnings in their latest quarterly results.

Microsoft posted revenue of $56.5bn (£46.4bn) in the three months to the end of September, up 13% on the same period last year and better than the $54.5bn (£44.8bn) forecast by analysts.

The company sees the power of cloud computing and its PC business to boost credibility.

Meanwhile, Alphabet’s revenue for the same quarter was $76.7bn (£63bn), up 11% year-on-year and also beating estimates for $75.97bn (£62.5bn). Was.

However, its performance was still called “disappointing” after its cloud computing division reported revenue of $8.4bn (£6.9bn) – $20m (£16.4m) short of expectations. This figure also shows a quarterly growth of 22.5%, which has decreased compared to 28% in the previous quarter.

Both companies reported their results at the close of US stock markets on Tuesday afternoon.

In immediate after-hours trading, Microsoft shares were up 5 percent — while Alphabet’s stock moved in the opposite direction, falling nearly 5 percent.

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Meanwhile, technology companies are competing for control artificial intelligence (AI)in an effort to increase profits and increase the range of services provided to customers.

The results showed that revenue at Microsoft’s smart cloud unit, which houses the Azure cloud computing platform, rose to $24.3bn (£20bn) – also better than expected.

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While Microsoft is still developing many of its AI services, commentators expect Azure to play a key role.

The company has also secured an early leg up on its rivals by investing in startup OpenAI, the owner of the popular company. ChatGPT Chatbot service

Investing.com senior analyst Jesse Cohen said the company’s results “suggest that AI products are driving sales and already contributing to top- and bottom-line growth.”

But Mr. Cohen said investors, on the other hand, were disappointed by the relatively poor performance of Google’s cloud platform, which he said was in danger of falling behind its rivals.

Tech giants have also been affected by the weak global economy. early this year Both companies announced plans to cut thousands of jobs worldwideWith Alphabet eliminating 12,000 roles and Microsoft 10,000 positions.

56 billion ($69 billion) video game deal explained

Microsoft hopes to increase its fortunes in the coming years with its £56 billion ($69 billion) purchase of gaming company Activision Blizzard. It cleared its last regulatory hurdle earlier this month.

The company first announced its bid in early 2022 to buy the developer known for making successful franchises like Call of Duty, but It faced the resistance of competition and market regulatory organization.

Colleague Tech giant MetaThe parent company of Facebook is going to report its latest results on Wednesday, with Amazon He is scheduled to do the same on Thursday.

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Image Source : news.sky.com

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