Added more $GOOGL on that dip.
$127.6B in quarterly revenue, up 25% YoY. That's over half a trillion annualized.
Yet shares tanked 10%+ after hours.
The numbers:
Cloud revenue: $30.7B, up 103%
Cloud operating profit: $11.1B, 3x last year
Cloud operating margin: 36%
Search revenue: $63.4B, up 12%
Why the dump?
Revenue missed $128.2B forecast by 0.5%. Adjusted EPS $2.67 vs $3.02 expected. Quarterly capex hit $51.4B, pushing free cash flow to -$9.1B.
Meanwhile $MSFT pumped after beating expectations.
Huge revenues. Huge AI demand. Huge spending.
AI growth is showing up in revenue and profit. The capex burn is what's spooking the market.
$127.6B in quarterly revenue, up 25% YoY. That's over half a trillion annualized.
Yet shares tanked 10%+ after hours.
The numbers:
Cloud revenue: $30.7B, up 103%
Cloud operating profit: $11.1B, 3x last year
Cloud operating margin: 36%
Search revenue: $63.4B, up 12%
Why the dump?
Revenue missed $128.2B forecast by 0.5%. Adjusted EPS $2.67 vs $3.02 expected. Quarterly capex hit $51.4B, pushing free cash flow to -$9.1B.
Meanwhile $MSFT pumped after beating expectations.
Huge revenues. Huge AI demand. Huge spending.
AI growth is showing up in revenue and profit. The capex burn is what's spooking the market.