#EarningsSeason 📊
Can results beat expectations and stocks still fall? That’s the real risk tonight! 📉
Google ($GOOGL ) and Microsoft ($MSFT) will report their results after the U.S. market closes. Here’s a comparison of their cloud computing businesses ahead of the earnings announcements:
☁️ Azure – Microsoft
* Grew 43% last quarter, with growth of around 45% expected.
* Annual revenue surpassed the $100 billion mark.
☁️ Google Cloud – Alphabet
* Grew 82%, bringing revenue to $24.8 billion.
* Operating margin rose from 20.7% to 35.6%.
💰 Capital expenditures (CapEx)
* Alphabet spent $44.9 billion last quarter.
* Microsoft expects to spend more than $50 billion this quarter.
🔍 What might the growth figures be hiding?
Although Google Cloud is growing faster, Azure is starting from a larger revenue base.
Microsoft also has $678 billion in orders and backlog, but a large portion is tied to OpenAI, which no longer relies exclusively on Azure.
Growth alone isn’t enough; what matters most is generating returns that justify the level of spending.
🎯 3 things I’m watching tonight:
1️⃣ Azure’s performance compared with the growth forecast of around 45%.
2️⃣ Capital expenditures compared with revenue growth.
3️⃣ The guidance both companies give for next quarter.
📈 Strong growth combined with spending discipline could boost investor confidence.
$GOOGL $MSFTB
Can results beat expectations and stocks still fall? That’s the real risk tonight! 📉
Google ($GOOGL ) and Microsoft ($MSFT) will report their results after the U.S. market closes. Here’s a comparison of their cloud computing businesses ahead of the earnings announcements:
☁️ Azure – Microsoft
* Grew 43% last quarter, with growth of around 45% expected.
* Annual revenue surpassed the $100 billion mark.
☁️ Google Cloud – Alphabet
* Grew 82%, bringing revenue to $24.8 billion.
* Operating margin rose from 20.7% to 35.6%.
💰 Capital expenditures (CapEx)
* Alphabet spent $44.9 billion last quarter.
* Microsoft expects to spend more than $50 billion this quarter.
🔍 What might the growth figures be hiding?
Although Google Cloud is growing faster, Azure is starting from a larger revenue base.
Microsoft also has $678 billion in orders and backlog, but a large portion is tied to OpenAI, which no longer relies exclusively on Azure.
Growth alone isn’t enough; what matters most is generating returns that justify the level of spending.
🎯 3 things I’m watching tonight:
1️⃣ Azure’s performance compared with the growth forecast of around 45%.
2️⃣ Capital expenditures compared with revenue growth.
3️⃣ The guidance both companies give for next quarter.
📈 Strong growth combined with spending discipline could boost investor confidence.
$GOOGL $MSFTB
