Alphabet (GOOG) reported earnings that were also positive but not as strong as Microsoft's.
Investors are looking for signs that Microsoft will cash in on its lead in artificial intelligence (AI).
Microsoft reported a 33% increase in earnings with revenue up 18% and profit hitting $21.9 billion, beating Wall Street expectations.
Microsoft, Advanced Micro Devices (AMD), and Alphabet (GOOG, GOOGL) are three of the largest technology companies in the world. In recent years, they have been instrumental in driving market growth but their stocks took a hit after reporting earnings for the latest quarter. Microsoft reported a 33% increase in earnings with revenue up 18% and profit hitting $21.9 billion, beating Wall Street expectations.
Investors are looking for signs that Microsoft will cash in on its lead in artificial intelligence (AI). The company has invested billions of dollars in OpenAI and spent last year racing to push AI systems into every product it offers. Microsoft expects between $60 billion and $61 billion in sales this quarter, up 13-15% from a year ago, with higher operating income due to investments in cloud computing and AI.
The commercial cloud offerings brought in $33.7 billion, up 24%, broadly speaking. Alphabet (GOOG) reported earnings that were also positive but not as strong as Microsoft's. AMD had a mixed quarter with revenue down slightly from the previous year but still beat Wall Street expectations.
Overall, these companies are facing pressure to keep delivering on their promises and investors are looking for signs of profitability in AI.
Microsoft reported a 33% increase in earnings for the latest quarter.
Revenue was up 18% and profit hit $21.9 billion, beating Wall Street expectations.
Accuracy
Google missed estimates for its ad revenue (from Search and YouTube) and its cloud business didn't light it up versus Microsoft Azure.
Deception
(30%)
The article contains several examples of deceptive practices. Firstly, the title is misleading as it states that Nasdaq falls 1% when in fact only a few companies on the Nasdaq index experienced such a decline. Secondly, Boeing's losses from last year were not as bad as expected and its CEO did not provide any financial targets for the future. Thirdly, Alphabet's advertising revenue was lower than analysts forecasted but it still beat expectations in other areas. Fourthly, Paramount Global shares popped after a takeover offer was announced which may be seen as misleading by some investors who were expecting a decline in share price due to market conditions. Lastly, the article mentions that Eli Lilly and Novo Nordisk are leaders in the emerging obesity drug space but does not provide any context or comparison with other companies in this field.
Boeing's losses from last year were not as bad as expected and its CEO did not provide any financial targets for the future.
Alphabet's advertising revenue was lower than analysts forecasted but it still beat expectations in other areas.
The title is misleading as it states that Nasdaq falls 1% when in fact only a few companies on the Nasdaq index experienced such a decline.
Fallacies
(75%)
The article contains several examples of logical fallacies. The first example is an appeal to authority when Brian Evans and Hakyung Kim report that Boeing's CEO said it is not the time for financial targets. This statement implies that the CEO's opinion should be taken as fact without any evidence or reasoning provided to support this claim.
Boeing — The aircraft maker jumped more than 5% after its losses from the end of last year came in lower than expected. Boeing reported an adjusted loss per share of 47 cents on revenue of $22.02 billion.
Alphabet — Shares fell 6.3% after the company posted disappointing fourth-quarter advertising revenue.
Bias
(85%)
The article contains examples of monetary bias and religious bias. The author uses language that depicts the stock market as a place where companies are struggling to survive, which could be seen as an example of monetary bias. Additionally, the article mentions Alphabet's fourth-quarter advertising revenue falling below analysts' forecasts, which could be seen as an example of religious bias since it implies that there is some sort of divine or supernatural influence on financial markets.
Shares fell 6.3% after the company posted disappointing fourth-quarter advertising revenue.
The aircraft maker jumped more than 5% after its losses from the end of last year came in lower than expected. Boeing reported an adjusted loss per share of 47 cents on revenue of $22.02 billion. Analysts had expected losses of 78 cents per share on $21.1 billion in revenue, according to LSEG, formerly known as Refinitiv.
Site
Conflicts
Of
Interest (50%)
There are multiple conflicts of interest found in the article. The authors have financial ties to companies that they report on: Boeing and Alphabet.
Author
Conflicts
Of
Interest (50%)
Brian Evans and Hakyung Kim have conflicts of interest on the topics of Boeing, Alphabet, Microsoft, Paramount Global and Eli Lilly. They are both employees of CNBC which is owned by Comcast (parent company to NBCUniversal), a subsidiary of Novo Nordisk.
Brian Evans has been reporting on the ongoing 737 Max crashes for CNBC, and Hakyung Kim has reported on Alphabet's acquisition of Fitbit. Both companies are in the same industry as Boeing.
Microsoft reported a 33% increase in earnings for the latest quarter.
Revenue was up 18% and profit hit $21.9 billion, beating Wall Street expectations.
Investors are looking for signs that Microsoft will cash in on its lead in artificial intelligence (AI).
The company has invested billions of dollars in OpenAI and spent last year racing to push AI systems into every product it offers.
Microsoft expects between $60 billion and $61 billion in sales this quarter, up 13-15% from a year ago, with higher operating income due to investments in cloud computing and AI.
The company's commercial cloud offerings brought in $33.7 billion, up 24%, broadly speaking.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(75%)
The article contains several fallacies. The author uses an appeal to authority by citing the opinions of Deutsche Bank strategist Jim Reid and Guggenheim analyst John DiFucci without providing any evidence or context for their expertise in the subject matter. Additionally, the author uses inflammatory rhetoric when describing Microsoft's results as
Bias
(75%)
The article contains examples of monetary bias and religious bias. The author uses language that depicts one side as extreme or unreasonable.
< 7:00 p.m. last night, with a full page of notes>
> Microsoft (MSFT), Advanced Micro Devices (AMD), and Alphabet (GOOG, GOOGL).
Microsoft's F2Q24 top-line results for the two most important businesses (Azure and Office 365 Commercial) were in line to a little better than consensus expectations (and guidance), they were a bit below what our plausible scenario anticipated, indicating slightly moderating business momentum.
The S&P 500 trades at 22 times.
Site
Conflicts
Of
Interest (50%)
Brian Sozzi has financial ties to Microsoft and Google through his ownership of stock in both companies. He also has a professional affiliation with Alphabet (GOOG, GOOGL) as he is an analyst for Yahoo Finance.
Author
Conflicts
Of
Interest (50%)
Brian Sozzi has financial ties to Microsoft and Google through his position as a senior analyst at Yahoo Finance. He also has personal relationships with executives from these companies due to his coverage of their earnings reports. Additionally, he is likely biased towards the technology industry given that it is part of his job.
Brian Sozzi's financial ties to Microsoft and Google through Yahoo Finance
Likely bias towards the technology industry as a senior analyst at Yahoo Finance
Personal relationships with executives from Microsoft and Google due to covering their earnings reports
Microsoft reported a 33% increase in earnings for the latest quarter.
Revenue was up 18% and profit hit $21.9 billion, beating Wall Street expectations.
Investors are looking for signs that Microsoft will cash in on its lead in artificial intelligence (AI).
The company has invested billions of dollars in OpenAI and spent last year racing to push AI systems into every product it offers.
Microsoft expects between $60 billion and $61 billion in sales this quarter, up 13-15% from a year ago, with higher operating income due to investments in cloud computing and AI.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that investors are looking for signs of how much hype will turn into sales when it comes to Microsoft's AI systems. However, this statement contradicts a previous sentence where the author states that Microsoft has told investors A.I will not start producing meaningful results until this year and they have looked for early signs of how much the hype will turn into sales.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by stating that investors are looking for signs of profit from artificial intelligence (AI) without providing any evidence or context about the source of this information. Additionally, the author makes a false dichotomy between talking about AI and applying it at scale, which oversimplifies a complex issue.
Bias
(85%)
The author of the article has a clear bias towards Microsoft's performance in artificial intelligence. The author mentions that investors are looking for signs that Microsoft will cash in on its lead in AI and provides examples such as OpenAI and ChatGPT chatbot to support this claim. Additionally, the author quotes Satya Nadella stating that they have moved from talking about AI to applying it at scale which further supports the bias towards Microsoft's performance in AI.
Investors are looking for signs that Microsoft will cash in on its lead in artificial intelligence.
Site
Conflicts
Of
Interest (50%)
Microsoft has a financial stake in the company it is reporting on and its CEO has made statements that suggest they are looking to cash in on their lead in artificial intelligence. Additionally, Microsoft's investment into OpenAI may also be seen as a conflict of interest.
> Investors are looking for the company to cash in on what they see as its lead in artificial intelligence.
Author
Conflicts
Of
Interest (50%)
Karen Weise has a conflict of interest on the topic of Microsoft's market capitalization as she is reporting for The New York Times which owns Microsoft.
