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-- 124.730 MSFT and FB set to report numbers this week: What to expect?
In this time of heightened uncertainty driven by the 3 risks of Russia/Ukraine, inflation/supply chains, and central bank tightening, it is tempting investors to slip into a cautious mode as more tech giants' earnings clusters are approaching.
$Microsoft (MSFT.US)$ will report its Q3 number on April 26th, and $Meta Platforms (FB.US)$ follows up with its result on April 27th.
Institutions voiced some opinions about Techs' outlook, with $Bank of America (BAC.US)$ and $Goldman Sachs (GS.US)$ discussing earning estimates for Microsoft and Meta Platforms.
Bank of America
BofA expects a healthy Q3 outcome for Microsoft, yet worries that Russia is likely to weigh on the company's outlook next quarter and further into next year.
We look for about 1% upside to our Q3 revenue of $48.9 billion (+17% y/y), with sustained strength in both the Azure and O365 businesses. In the Azure business, partner feedback suggests growth holding or accelerating with recent levels, driven by cross selling with key technologies such as Dynamics, Power Apps, and Office."
However, BofA says it is unclear if existing Azure consumption or O365 subscription agreements in Russia will be halted, despite Russia only represents below 1% of total revenue and no new sales were being made in Russia, according to statements from CFO Amy Hood. With that being considered, the bank lowers its earnings estimates for the next quarter and further into 2023.
Goldman Sachs
Goldman revealed its bullish stance on Meta, citing that Meta is leading in developing metaverse technology and giving the stock more upside potential. However, efforts in the metaverse may not pay off until 2023.
The 'main race' for VR is between $Apple (AAPL.US)$ and Meta. Apple is likely striving for an extension to its ecosystem, and Meta is looking to build a base of users through attractive hardware pricing and compelling experiences."
Still, while VR platform technology is getting better, Goldman stated that the category has until now failed to resonate with a broad base of users.
Goldman believes that VR platforms are set to evolve quickly into 2023, and sales of these products will depend on the amount of utility enjoyed by consumers. It highlights that VR could become an integral part of remote working if some issues, such as comfort, are resolved.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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