#earningsseason
Beat the estimate, still drop? That’s the real risk tonight. 📉
Both GOOGL and MSFT report after the US close. Here’s the cloud scoreboard (pre-earnings):
Azure: +43% last quarter, guided ~45%; passed $100B annual revenue Google Cloud: +82% to $24.8B, operating margin up from 20.7% to 35.6% Capex: Alphabet $44.9B last quarter; Microsoft guided above $50B this quarter
What the headline growth rates hide:
Google is growing faster, but Azure is the bigger base. Microsoft’s $678B backlog looks huge, yet a large share of it has been tied to OpenAI, which no longer runs exclusively on Azure. Growth only matters if it outruns the spending.
3 things I’m watching:
1️⃣ Azure vs the ~45% guide
2️⃣ Capex vs revenue growth
3️⃣ Next-quarter guidance
Strong growth with disciplined capex builds confidence. A bigger bill without monetization may not.
Which decides the reaction: cloud growth or capex discipline? 👇
Not financial advice.
$GOOGL
$MSFT
$MSFTB
#CanMicrosoftDeliverOnAI #CanGoogleDefindItsCore #BinancePick
Beat the estimate, still drop? That’s the real risk tonight. 📉
Both GOOGL and MSFT report after the US close. Here’s the cloud scoreboard (pre-earnings):
Azure: +43% last quarter, guided ~45%; passed $100B annual revenue Google Cloud: +82% to $24.8B, operating margin up from 20.7% to 35.6% Capex: Alphabet $44.9B last quarter; Microsoft guided above $50B this quarter
What the headline growth rates hide:
Google is growing faster, but Azure is the bigger base. Microsoft’s $678B backlog looks huge, yet a large share of it has been tied to OpenAI, which no longer runs exclusively on Azure. Growth only matters if it outruns the spending.
3 things I’m watching:
1️⃣ Azure vs the ~45% guide
2️⃣ Capex vs revenue growth
3️⃣ Next-quarter guidance
Strong growth with disciplined capex builds confidence. A bigger bill without monetization may not.
Which decides the reaction: cloud growth or capex discipline? 👇
Not financial advice.
$GOOGL
$MSFT
$MSFTB
#CanMicrosoftDeliverOnAI #CanGoogleDefindItsCore #BinancePick
