Weekly Earnings Recap: Stocks Are Supported by Big Tech's Strong Earnings

In One Chart joined discussion · Jul 28, 2023 16:22

Weekly Earnings Recap: Stocks Are Supported by Big Tech's Strong Earnings

· $Intel (INTC.US)$ showed a return to profitability after two straight quarters of losses and issuing a stronger-than-expected forecast. The stock rose 8% in extended trading. Intel CEO Pat Gelsinger said on a call that the company still sees persistent weakness in all segments of its business through year-end, and that server chip sales won't recover until the fourth quarter.

· $Alphabet-A (GOOGL.US)$ and $Microsoft (MSFT.US)$ beat earnings expectations amid AI frenzy. Google parent Alphabet reported profits that beat market forecasts as digital advertising revenue revived and its cloud business grew.

There's exciting momentum across our products and the company, which drove strong results this quarter,”Alphabet chief executive Sundar Pichai said in an earnings release.

Microsft posted US$56.2 billion in sales, which also beat expectations, though the growth slowed from the previous quarter. Its share price slipped in after-hours trading. The business in the latest quarter was driven by the cloud, which relies heavily on AI and accounts for more than half of the company's sales.

· $Meta Platforms (META.US)$ reported an 11% increase in revenue, the first time the company has reported double-digit growth since the end of 2021.

Meta's considerable AI investments over the past couple years are paying off as AI-generated content drives incremental engagement…Meta highlighted the strongest product platform it’s had in some time, partly fueled by AI," wrote J.P. Morgan analyst Doug Anmuth.