Earnings season will kick into overdrive today as tech giants begin to report their quarterly results. Microsoft (MSFT) is scheduled to start the festivities after the bell, with a set of results that come during a period of notable changes at the company. For one, Microsoft just revealed plans to lay off 10,000 employees (along with a related charge of $1.2B), and yesterday, the company – which revolutionized the computing industry – confirmed it would make a “multi-billion dollar” investment in ChatGPT developer OpenAI.
Snapshot: Analysts are likely to raise questions over how both events might impact Microsoft’s business throughout 2023, so stick around for the conference call. SA Marketplace author Dilantha De Silva recently discussed the long-term implications of the OpenAI investment and whether Microsoft can gain an edge over Google (GOOG, GOOGL). Also pay attention to Microsoft’s segment financials and recurring revenue growth momentum, according to contributor Business Quant, while Tradevestor says it is high time for a stock split. Do you agree?
Things are likely to get volatile as earnings pour in, but so far, tech stocks have had a great start to the new year. The Nasdaq Composite Index (COMP.IND) is up nearly 10% in 2023 after getting pummeled last year as the Fed floored the accelerator on interest rates. There are still several catalysts that could derail things, so keep an eye on what corporations say about rising costs and a strong dollar, as well as slowing economic growth and other macro headwinds.