It continues to be an intense earnings week for many technology companies. In today's video I look at fundamentals and recent earnings for Microsoft (NASDAQ:MSFT) and Google parent Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), and below I share a few highlights from the video.
- On July 27, 2021, Microsoft reported its Q4 2021 earnings, and Alphabet reported its Q2 2021 earnings. Microsoft revenue grew 21% year over year (YoY), driven by solid growth in its intelligent cloud segment. Alphabet's revenue grew 62% YoY, driven by the overall demand for advertisements as the world continues to open back up.
- Google advertisement business saw both strong YoY and quarter-over-quarter (QoQ) growth. YouTube advertisement revenue grew by roughly $1 billion compared to the previous quarter, representing approximately a 16% QoQ growth.
- Microsoft's gaming revenue grew 11% YoY, driven by the new generation consoles and Xbox gaming subscription service. The growth in the gaming segment could have shocked some investors as some believe gaming would slow down as the world reopens.
*Stock prices used were the premarket prices of July 28, 2021. The video was published on July 28, 2021.