Microsoft and Google earnings: Why Microsoft jumped and Google slumped when both beat hopes

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 90%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

Investors’ sullen response to Alphabet reporting the GDP of a small country as quarterly revenue, while Microsoft rose says a lot about the market’s AI fixation.

It’s a sure sign of AI tunnel vision when Google’s owner Alphabet can report the GDP of a small country in quarterly revenue, claim double-digit growth, beat profit expectations and yet be greeted by investors with a shrug and thumbs down.

But all investors were looking at was the cloud performance of each business: Google’s cloud unit recorded revenue of $US8.41 billion, up 22 per cent. That was dwarfed by Microsoft’s Azure cloud business, which grew 28 per cent, with the business unit containing it hitting $US24.3 billion in revenue.Microsoft and Alphabet are trying to add artificial intelligence to everything they do.

That worries investors who see it as a sign of AI weakness. Microsoft’s rapid growth, by contrast, will result in a larger market share.During an earnings call on Tuesday, Microsoft chief executive Satya Nadella said his company was winning more customers for Azure via “OpenAI API’s as leading AI start-ups use OpenAI to power their AI solutions.”

Alphabet’s position is tougher. Take search: it has to embed AI results into its results in a way that consumers like, while maintaining just as many ads, and delivering balanced perspectives on topics as controversial as the Israel-Palestine conflict.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 2. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

‘Cyber shield’ to be key part of $5b Microsoft investment in AustraliaPrime Minister Anthony Albanese will reveal the plans on the first day of his US visit, promising new jobs in fields such as cloud computing and AI.
La source: brisbanetimes - 🏆 13. / 67 Lire la suite »