Alphabet Exhibits Positive Cloud Growth
Alphabet recently released its quarterly earnings showcasing a remarkable 31% increase in EPS and nearly 14% surge in sales, surpassing consensus expectations. The tech giant’s cloud segment witnessed substantial growth, with a revenue spike of $10.3 billion, up almost 30% year-over-year, setting a new quarterly record. Moreover, the operating income from Google Cloud surged significantly, reaching $900 million compared to $191 million in the previous year.
Microsoft’s Cloud Continues to Impress
Microsoft stunned investors with a 23% year-over-year growth in cloud revenue in its latest report, signaling stability after a period of growth deceleration. Earnings and revenue projections have remained steady in recent months, with an anticipated 8% rise in EPS on 14% revenue growth. The company consistently outperformed consensus cloud expectations in recent quarters, with expectations suggesting a 20% climb to $28.7 billion in the upcoming release.
Anticipating Amazon’s Cloud Performance
Amazon’s AWS segment demonstrated robust performance in the previous quarter, achieving $25 billion in net sales, reflecting a 17% year-over-year growth and breaking a trend of underwhelming results in this area. Forecasts for the upcoming period place the Zacks Consensus estimate for Cloud revenue at $25.9 billion, indicating a 17.2% year-over-year increase. Despite muted expectations, significant growth is anticipated, with a projected 63% hike in EPS supported by a 10% sales boost, attributed to improved cost management and operational efficiencies.
Conclusion
The upcoming earnings reports from major cloud players, including tech juggernauts like Amazon and Microsoft, will be closely watched by investors. Google’s parent company, Alphabet, set a positive tone with its cloud segment growth, paving the way for heightened expectations. The focus will primarily be on year-over-year growth rates, with any signs of deceleration potentially sparking concerns. Conversely, exceeding growth projections could lead to post-earnings optimism, as investors assess a myriad of key performance indicators.