Today (Jan 30th) a number of growth tech companies reported their earnings. To begin with, Google reported 72 billion vs expectation of 71 billion. Despite this performance, the stock slid 4% after hours as it missed on adds revenue: 65.6 billion vs 65.8 billion expected. Here are the main the highlights:
- Revenue, excluding traffic acquisition costs: $72.32 billion vs. $70.97 billion expected ($63.12 billion in Q4 2022)
- Adjusted earnings per share: $1.64 vs. $1.59 expected ($1.05 in Q4 2022)
- Cloud revenue: $9.19 billion vs. $8.95 billion expected ($7.32 billion in Q4 2022)
- Ad revenue: $65.5 billion vs. $65.8 billion expected ($59.04 billion in Q4 2022)
This arrives after google has gone through layoffs to refocus some of its workforce on AI and to cut costs. Its currently playing catchup in third place to MSFT and Amazon.
Speaking of Microsoft, it beat earnings brought by strength in cloud and AI. It reported adjusted earnings per share of $2.93 on revenue of $62 billion, beating expectations of Adj. EPS of $2.78 on revenue of $61.1 billion
Shares of AMD slid also on Tuesday as the company announced that it expects lower than expected revenue. AMD expects revenue of $5.4 billion, plus or minus $300 million, for the current quarter, compared with analysts’ average estimate of $5.73 billion.
Investors may take time to digest the numbers that have been and that will be released this week. We expect as a result for the market to go sideways or slightly lower for the short term. Having said that from a technical perspective the RSI for the QQQ is in the overbought territory and volume oscillator points to cash leaving the market.
