Alphabet Demonstrates Strength
Alphabet recently showcased robust performance in its quarterly release. With a 31% increase in EPS and nearly 14% higher sales, the tech giant surpassed expectations. Cloud revenue soared to $10.3 billion, a 30% year-over-year growth, and Google Cloud’s operating income saw a significant rise to $900 million.
Microsoft’s Cloud Momentum
Microsoft surprised investors with a 23% year-over-year growth in cloud revenue, signaling a turnaround from previous periods of slower growth. The company is anticipated to achieve 8% EPS growth on a 14% sales increase, with cloud results consistently exceeding expectations.
Amazon’s Sturdy Cloud Performance
Despite recent market concerns, Amazon Web Services (AWS) reported notable success, with $25 billion in net sales showing a 17% growth from the previous year. Expectations for Cloud revenue stand at $25.9 billion, depicting a 17.2% year-over-year climb. Notably, EPS is projected to surge by 63% on a 10% rise in sales.
Analyst Commentary
Investors eagerly await the cloud revenue growth rates of major players like Amazon and Microsoft this quarter, as any deceleration could cause market jitters. Stronger-than-expected growth, on the other hand, could fuel post-earnings optimism. However, the focus will extend beyond growth rates to encompass other vital metrics.
