Windows in order: Microsoft (MSFT) rebounded 5% in extended trading on Tuesday following surprisingly upbeat guidance after a Q4 miss. On its earnings call, the company said it expected double-digit growth in sales and operating income in fiscal 2023, with margins roughly flat. That sticks to its previous guidance, an encouraging sign given the concerns of a looming recession.
A-B-C: Alphabet (GOOGL) popped 4% following its near Q2 miss, even as the company warned of more currency challenges from the strong dollar and some brand spending slowdowns. CFO Ruth Porat specifically pointed to challenging quarterly comparisons and said “going forward the very strong revenue performance last year continues to create tough comps that will weigh on year-on-year growth rates of advertising revenues for the remainder of the year.”
Meta decline: Shares of Meta Platforms (META) fell about 5% AH during a Q2 earnings call on Wednesday as CEO Mark Zuckerberg took the mic. It came after the Facebook-parent posted its first decline in revenue as a public company, on the heels of its first-ever decline in users just three months ago. A full-year forecast also showed that current-quarter revenues would fall somewhere from 6%-14% short of expectations as marketing departments shrink their budgets and Apple’s privacy rules make ads less effective.
iEarnings: Shares of Apple (AAPL) climbed 3% to $162 in extended trading on Thursday after posting FQ3 results that were better-than-expected and saying sales should “accelerate” in the current quarter despite U.S. economic uncertainty. Revenue attributed to the iPhone, which accounted for nearly half of all sales, came in at a whopping $40.7B (+3% Y/Y), while the company saw a “record” number of people switch over from Android during the quarter. That helped boost revenue at Apple’s Services division, which rose to $19.6B (+12% Y/Y) and resulted in the number of people paying recurring subscription fees to climb 23% over the past 12 months to 860M.
Prime delivery: Investors also bid up shares of Amazon (AMZN), betting that strong AWS cloud computing growth will outweigh weakness at its core retail operations. The stock even soared 13.5% to $138 AH despite a $2B net loss, which was skewed heavily due to a massive writedown on its investment in EV maker Rivian (RIVN). A positive revenue forecast helped counter that sentiment, while advertising revenue reached $8.76B (+18% Y/Y), suggesting that Amazon could be taking market share from its mega-cap tech rivals.