Today’s video focuses on the recent earnings of Microsoft (MSFT 2.50%) Y Alphabet (GOOGLE 2.17%) (GOOG 1.91%). I also discuss my thoughts on the huge tech market sell-off affecting companies like nvidia (NVDA 5.32%). Here are some highlights.
- The tech market sell-off continues to drive down stock prices. While the short term can still be scary, it is essential to remember that as investors we are playing for the long term.
- Alphabet reported 23% year-over-year (YOY) revenue growth driven by its overall advertising and cloud segment. Unfortunately, YouTube’s ads did not meet analysts’ expectations, which could be one of the reasons why the stock price is falling. YouTube’s ad glitch could worry investors over increased competition in TikTok’s short videos.
- Microsoft reported 18% year over year growth in revenue driven by strong growth in its three segments, Productivity and Business grew 17%, Intelligent Cloud grew 26%, and More Personal Computing grew 11%. Microsoft’s gaming hardware grew 14% as demand for its game consoles remains high. The growth of Microsoft’s consumer products contradicts current fears of declining consumer spending.
*Share prices used are pre-market prices as of April 27, 2022. Video posted on April 27, 2022.