All the recent criticism of big tech in Washington D.C. as well as the well-liked media doesn’t seem to be hurting the companies’ financial results.
Four tech giants reported earnings after the bell on Thursday, as well as all of them beat expectations as well as saw their stocks shoot up.
A quick summary:
Amazon: EPS of 52 cents came in way ahead of expectations of 3 cents, as well as investors gave the company a pass on its razor-thin 0.8 percent profit margin, the lowest This particular’s shown since September 2014. Total revenue was $43.8 billion, as well as Amazon Web Services, the company’s pioneering cloud business, passed $4 billion in quarterly revenue as well as operating income of $1.17 billion. The stock soared more than 7 percent after hours.
Alphabet: EPS of $9.57 topped estimates of $8.33, sending the stock up around 3 percent after hours. Revenue was boosted by a surge in clicks on Google ads around the globe, particularly in Asia. For all the company’s talk about its brand-new businesses like Pixel phones, as well as long-term investments (a.k.a. “additional Bets”) like self-driving cars, nearly all of its revenue still comes by advertising — $24.1 billion out of its total $27.8 billion, or 87 percent. In a call with CNBC, Alphabet CFO Ruth Porat reiterated the company’s theme of “products with AI [artificial intelligence] at their core,” however the main function of in which AI today seems to be optimizing ad revenue.
Microsoft: EPS of 84 cents (excluding certain items) beat estimates of 72 cents, as well as the company’s various cloud businesses topped a $20 billion annualized run rate for the 1st time — they’re on track to book $20.4 billion This particular year even with no further growth. Digging into the company’s report a little, most of its organic growth came by selling Office products (including the cloud-based Office 365) as well as server products as well as related cloud services (including Azure, its competitor to Amazon Web Services, which grew 0 percent in revenue by last year). The company was the first old-guard enterprise software company to commit to the cloud, as well as investors rewarded in which vision by sending the stock up 4 percent after hours.
Intel: EPS of $1.01 beat expectations of 80 cents, as well as the main surprise was in which revenue in its client computing group — in which is usually, mostly chips in PCs — was flat instead of down. The stock was up about 1.5 percent.
Overall, these four companies have a combined market cap of close to $2 trillion.