Big Tech is set to drop a couple of key earnings after the bell on Tuesday, with both Microsoft Corporation (NASDAQ:MSFT) and Google’s parent company Alphabet Inc (NASDAQ:GOOG) reporting their latest earnings after the close.
Consensus analyst estimates have Microsoft reporting revenue for 3Q of about US$49 billion or $2.18 per share.
Chief Market Analyst at CMC Markets UK, Michael Hewson, expects Microsoft’s revenue will slow slightly to between $48.5 billion and $49.3 billion, down from a record $51.7 billion in 2Q.
READ: US stocks continue their slide ahead of earnings from Microsoft, Alphabet
Based on 1Q figures released last night by the company’s subsidiary, Call of Duty maker Activision, which showed revenue was well below last year’s numbers, Hewson said: “It will be interesting to see if Microsoft’s personal computing and gaming revenue also sees a slowdown, after Xbox content and services revenue saw a rise of 10% in 2Q.”
Regarding Alphabet, analyst consensus is that the company will report revenue of about $68 billion or $25.94 per share for 1Q 2022.
Hewson says the big question was whether Alphabet could sustain the type of revenue growth of 30% it saw last year when its costs have risen substantially.
“The company’s success has attracted scrutiny particularly around digital advertising with the business facing anti-trust lawsuits across a number of US states in the past few months,” he said.
Microsoft was down about 3.5% trading at $270 just before the close on Tuesday while Alphabet had also dipped about 2.6% to $2,402 per share.
Contact Emily at emily.jarvie@proactiveinvestors.com
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