5 things you should know before the markets open

Shares of Google parent Alphabet fell after the search giant’s cloud revenues fell short of expectations and Microsoft’s shares fell after it was able to grow its Azure cloud business. Here’s what investors need to know today.

1. Microsoft’s cloud computing revenue drives share growth

Microsoft ( MSFT ) grew its Azure cloud-computing unit more than forecasts, helping the tech giant to post a 27 percent year-over-year net income increase to reported adjusted earnings of $2.99 ​​per share, while the company’s earnings for the fiscal first quarter At about $56.5 billion, a 13 percent increase over the same period last year. Microsoft’s Azure cloud business saw sales grow 29 percent, higher than the 26 percent growth analysts had expected. Microsoft shares rose 4 percent in premarket trading.

2. Alphabet’s shares fall after reporting a drop in cloud revenue

Shares of Google parent Alphabet ( GOOG ) fell more than 6 percent in premarket trading as revenue from the search giant’s cloud division rose to $8.41 billion for the third quarter, less than analysts expected, as the company Artificial intelligence is facing competition. AI) competitors, in addition to increasing legal challenges. The company reported third-quarter earnings of $1.55 per share, up 46 percent year-over-year, as ads from YouTube and search results helped boost revenue to $76.7 billion.

3. Visa reports an increase in net income, income

Visa ( V ) reported net income of $4.7 billion, or $2.27 per share, up 19 percent from a year earlier, as the credit card provider beat analysts’ expectations for revenue of $8.5 billion. Visa cited an increase in transaction volume in the fourth quarter as consumer spending picked up as inflation eased, driven in part by travel demand. Visa shares fell 1.5 percent in premarket trading.

4. Meta Stocks Fall After 33 States Sue Tech Giant Over Social Media Harms

Shares of parent platform Instagram ( META ) fell nearly 1 percent after a coalition of 33 states sued the tech giant for allegedly harming children and teenagers. Nine state attorneys general are joining the suit, which also alleges Meta violated laws protecting children’s online privacy.

5. Predicting the increase in sales of new houses

At 10 a.m. ET, the U.S. Census Bureau will release its monthly report on new home sales, which are expected to have risen to 680,000 in September from 675,000 in August. The data comes after new home sales fell 8.7 percent in August from July, falling short of analysts’ expectations as mortgage rates rose, putting pressure on buyers.

Corrected October 25, 2023: An earlier version of this article incorrectly stated that GDP, durable goods, initial jobless claims, and pending home sales figures would be released on Wednesday, October 25, 2023. These figures will be released on Thursday, October 26, 2023.

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