Investors should pay attention to the financial report of big techs this week.$Microsoft(MSFT)$$Alphabet(GOOG)$$Meta Platforms, Inc.(META)$$Apple(AAPL)$$Amazon.com(AMZN)$ It could guide the market on the rest of the quarter. $NASDAQ(.IXIC)$
Microsoft and Google will be the first to announce their results post-hours on October 25th. What should we pay attention?
Microsoft: Commercial Cloud business's growth, foreign exchange impact, Blizzard acquisition case
Microsoft's performance as of September 30th is Q1 of its fiscal year 2023. The market unanimously expected revenue to be US $49.56 billion, with a year-on-year growth rate of 9.3 in single digits and an adjusted EPS of US $2.29.
Among them, the market expects the revenue of commercial cloud business to be US $25.6 billion, with a year-on-year growth rate of 23.6%. The deferred revenue of cloud business will also drop from US $19.3 billion in the previous quarter to US $16.9 billion, up 5.1% year-on-year.
Cloud business is a key business of Microsoft at present. At the Microsoft Ignite 2022 conference held in Seattle on October 12-14, the company also demonstrated the next generation of more cost-effective and energy-saving transportation infrastructure, including the new AzureVM.
In addition, due to the influence of exchange rate, the revenue and profit of this quarter will also be affected. The market unanimously expects EBITDA to be US $24.75 billion, with a year-on-year growth rate of 5.6%.
Microsoft's revenue and profit in the last quarter fell short of expectations, and it was the only time since Q4 2018 that it fell short of expectations.But as it raises its guidance for the next fiscal year 2023, the market has given quite positive feedback(Day 2 +6.7%).
Now is the time for Microsoft to deliver on its performance. Recently, the market also has the voice of bearish Microsoft, thinking thatAs its growth slows, the company's valuation will be rebuilt, with downside risks exceeding 20%.
In addition, Microsoft acquired$Activision Blizzard(ATVI)$The case in the UK is not going well, and Britain's antitrust regulator has listed it will scrutinize Microsoft in detail. The progress of this event will also determine the future development of its entertainment business.
Google: On-line ads business, Cloud business
As spending on e-advertising declines, companies that generate revenue from advertising are more or less affected. Among them, Google Q2's advertising revenue accounts for 80%.
At present, the market unanimously expects that Google Q3's revenue will be US $70.8 billion, with a year-on-year growth rate of 8.7%, of which advertising revenue will be US $57 billion, with a year-on-year growth rate of 7.28%.
The revenue of Google Cloud, which is concerned by the market, is expected to be 6.6 billion US dollars, with a year-on-year growth rate of 32%, which is also the highest among several clouds.
This quarter's exchange rate impact is expected to reach 3.8 billion US dollars, which is the highest single quarter in recent years, so it will also bring negative effects to profits. The adjusted GAAO net profit is 16.5 billion US dollars, down 6.7% year-on-year.
Due to the previous$Snap Inc(SNAP)$The performance is much less than expected after the reduction, and the market is afraid of advertising companies. Google's advertising business this quarter will also provide a yardstick for other advertising companies.
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