Microsoft and Alphabet (Google) disappoint Wall Street expectations

Microsoft and Alphabet’s quarterly results fell short of analysts’ expectations, both in terms of revenue and net profit. However, the stock market sanction seems limited in post-closing trading.

The copy delivered by the two tech giants is far from brilliant. But judging by post-market trading, the sanction on Wall Street remains, for the moment, limited.

Thereby, Alphabet

, the parent company of Google and YouTube, climbed nearly 3% in aftermarket trading. On his side, Microsoft

, limited breakage. The action yielded less than 1%.

Investors have been particularly concerned since the release of disappointing results from Snap and Twitter last week. The two platforms pointed in particular to “headwinds” in the digital advertising sector.

Alphabet resists

Alphabet’s second quarter revenue increased to $69.69 billion, narrowly missing analysts’ estimate. They expected, on average, a figure of 69.88 billion dollars.

This result therefore seems to show that Google, the leader in the digital advertising sector, would be able to resist the pressures of an unfavorable economic environment, while major economies could soon tip into recession.

Its diluted earnings per share was $1.21, versus an average analyst estimate of $1.29 per share.

Microsoft weighed down by the dollar

Like Alphabet, Microsoft’s quarterly revenue and profit missed Wall Street estimates. For good reason: the Redmond, Washington-based company was penalized by the rising dollar, slowing PC sales and falling ad spend.

Note that nearly half of the company’s revenue comes from outside the United Stateswhich explains why the rise in the greenback is weighing on its results.

the turnover of the company thus increased to 51.87 billion dollars in the fourth quarter of its lagged fiscal year, against 46.15 billion dollars a year earlier. Analysts had, on average, expected a figure of $52.44 billion, according to IBES data from Refinitiv.

Its net profit reached $16.74 billion, or $2.23 per share, in the quarter ended June 30, from $16.46 billion, or $2.17 per share, a year earlier. Analysts were expecting $2.29 per share.

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