Microsoft vs. Alphabet: whose AI is cooler?

Oct 21
As though on cue, every index moved in unison and with confidence on Tuesday, staying in the green zone and leaving not the least room for questions about whether the day would end in the green zone. Yes, there was a brief effort by the bears to take the lead in the middle of the day, but the bulls swiftly reclaimed control and made it very evident to all who were in charge.

We can thus conclude that there was a significant technical comeback because the end of the main trading session was marked by the sound of bull drums thumping, and the day closed with a confident rise in all key indices.
The primary drivers of investor confidence were the majority of corporations' strong corporate reporting—the majority released their third-quarter 2023 financial results ahead of trading—and the fact that Treasury yields had finally leveled off following a dramatic increase and subsequent decline.

Businesses like General Electric and Coca-Cola, which easily exceeded analyst expectations with their quarterly earnings statistics, were particularly happy with their investors and upped their predictions.

The market was greatly bolstered by strong demand for shares of the trillionaire monster companies Microsoft and Alphabet, whose reporting was scheduled to appear right after the final gong. The telecom behemoth Verizon also delighted its shareholders, with its shares surging by nearly 10% at the end of the day.

And the much-anticipated reports from Google and Microsoft surfaced right after the trading. Both businesses were expected to deliver exceptionally strong earnings, with Alphabet's forecasts possibly being higher than Microsoft's. The outcomes of Tuesday's trade, in which Google shares increased by 1.69% and Microsoft shares by only 0.37%, can even be used to evaluate this.

But as is typically the case, the reality was entirely different. Following its third-quarter earnings report, Microsoft's stock price increased by 5% due to an unexpected uptick in growth for its Azure cloud computing platform.

Following a quarter of constant currency growth of 27%, analysts had widely anticipated an additional slowdown in cloud growth as clients continued to cut down on their existing cloud spending.

Instead, Azure's sales growth accelerated to 29%, or 28% when currency fluctuations are taken into account, contributing to an overall increase in revenue and profit that exceeded all projections.

Regarding Alphabet's Google reporting, the company gave investors a mixed picture given its struggles with rivals; while on the one hand, it reported the strongest business growth in over a year, it also disappointed them with relatively weak cloud computing sales. creating tools for artificial intelligence.

Because of this, investors had serious doubts about Google's reporting, and in the wake of the market, they drove the company's quotes into the red zone, losing up to 6% of their value from Tuesday's closing price.

The recovery in the American market was well received by the Asian market, which surged higher this morning as well. Additionally, positive news from Microsoft has encouraged investors who have placed bets on the rise in the value of technology companies' stock, particularly those specializing in cloud computing and artificial intelligence.

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