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And investors have already seen signs of a slowdown in the cloud business for the past several quarters from both Microsoft and Amazon, now they want to know if the cloud will ever return to those higher rates of growth, or if they need to prepare for slower growth going forward.
Microsoft (MSFT) announced fiscal Q2 results with EPS and cloud business beating the market:
Revenue: $52.7 billion (actual) vs $53.1 billion (expected)
EPS: $2.3 (actual) vs. $2.29 (expected)
Revenue from Intelligent Cloud segment:$21.5 bil vs $21.25-$21.55 bil (guidance)
The company announced plans to reduce its workforce by 10,000 jobs, or a little under 5% of the total workforce recently. It also bought back $4.6 billion worth of stock in the quarter.
The share price is now down 1% in the extended session.
Alphabet (GOOG, GOOGL) reported its Q3 earnings under market expectations on the top and bottom line, as YouTube advertising revenue came up $400 million short of estimates.
Revenue ex-TAC: $57.27 billion vs $58.2 billion expected
Earnings per share: $1.06 vs $1.25 expected
For the company's future products, Tesla says it expects to roll out its semi to Pepsi in December, and that it will begin producing its Cybertruck in Texas after ramping its Model Y production.
Tesla (TSLA) reported Q3 results which missing analysts' expectations on revenue, but slightly beating on earnings.
Revenue: $21.45 billion actual vs $22.09 billion expected
Adjusted EPS: $1.05 billion vs $1.01 expected
Tesla announced that it produced 365,932 vehicles in Q3 and delivered 343,830. The number increased from 258,580 produced and 254,695 delivered in Q2, when the company was influenced by COVID-related shutdowns in China.
Tencent Holding Ltd (OTC: TCEHY / https://t.co/buHwbeGov4) recorded its first-ever revenue decline after its workforce shrank almost 5%
2022 Q2 revenue declined and worse than estimated by 3% to 134 bil yuan ($19.8 bil)
Net income also missed estimates, down 56% to 18.6 bil yuan
Facebook parent company Meta (META) reported Q2 results missing estimates.
Revenue: $28.8 billion vs $28.9 billion expected
EPS: $2.46 vs $2.54 expected
Facebook daily active users: 1.97 billion vs 1.95 billion expected
The share price fell 4% after trading hours.
Microsoft announced Q2 results missing estimates, but the price still up 4% in extended trading:
Adjusted EPS: actual $2.23 vs estimates $2.29
Revenue: $51.87 billion vs $52.44 billion
And the figures are affected by the strong US dollar FX rate during the quarter.
Google parent company Alphabet (GOOG, GOOGL) announced quarterly results with earnings missing estimates:
Adjusted EPS: actual $1.21 vs est. $1.32
Ad revenue: actual $56.29 bil. vs est. $56.14 bil.
Revenue (ex-TAC): actual $57.47 bil. vs est. $58.14 bil.
AT&T Inc. (T) announced its Q2 results that having added a better-than-expected 813,000 net postpaid phone customers and 196,000 prepaid phone customers in the second quarter.
But the free cash flow from continuing operations fell to $1.4 billion from $5.2 billion last year. The shortfall was due to the higher growth investments, customers taking longer to pay their bills, and costs related to its higher-than-expected subscriber gains.