Alphabet, Microsoft and Meta publish disappointing quarterly results

Meta joined Alphabet and Microsoft in posting disappointing quarterly financial results. Meta experiencing its first ever quarterly revenue drop.

Economic downturn

Due to the current global economic slowdown, markets had predicted that the earnings of mega-caps, which make up 40% of the Nasdaq and 30% of the S&P 500, could take a big hit.

However, although earnings were disappointing and worse than expected overall, some analysts suggest the situation could have been worse.

The International Monetary Fund (IMF) recently announced that it is revising its global GDP forecast for 2022 from 3.6% at the start of April to growth of 3.2% for the rest of the year. .

That appears to have been reflected in the earnings report released by three of the world’s biggest tech companies.


Alphabet, Google’s parent company, was one of the first companies to report results this week, with numbers falling short of expectations. The company said second-quarter revenue rose 13% to $69.7 billion, which was lower than the $70.8 billion expected.

Second-quarter earnings came in at $1.21 per share, lower than the $1.27 per share for the quarter that analysts had expected.


Microsoft also fell short of expectations, with disappointing second-quarter results and revenue. The Bill Gates-founded company reported earnings of $2.23 per share, against consensus expectations of $2.29.

Quarterly revenue was reported at $51.87 billion, which was lower than the $52.44 billion forecast by analysts.


Finally Meta, formerly Facebook, also announced disappointing financial results for the second quarter of the year. They confirmed that revenue totaled $28.82 billion for the April-June period, which is slightly lower than the $28.94 billion forecast.

Earnings per share (EPS) was announced at $2.46, against the forecast of $2.56, and this despite the fact that the number of daily active users of Facebook reached 1.97 billion against 1.95 billion expected.

CEO Mark Zuckerburg said that “we appear to have entered an economic downturn which will have a broad impact on the digital advertising industry“.

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