PanamaTimes

Monday, May 27, 2024

Microsoft blames turbulent economy as it misses profit targets

Microsoft blames turbulent economy as it misses profit targets

Tech giants Microsoft and Alphabet report their financial results in the US, with both seeing challenges in the current economy.

Microsoft missed its profit targets on Tuesday, blaming the turbulent economy.

The tech giant reported a fourth-quarter profit of $16.7bn (£13.8bn) - or $2.23 per share.

Revenue came in at $51.9bn (£43.1bn), which was up 12% from last year.

Analysts had been forecasting $2.29 per share and revenue of $52.94bn (£44bn), according to FactSet.

Microsoft blamed "evolving macroeconomic conditions and other unforeseen items" for its financial performance.

It cited supply challenges in China due to strict COVID-19 lockdowns, a deteriorating personal computer market, and the winding down of its operation in Russia as a reaction to that country's invasion of Ukraine.

Alphabet Inc, meanwhile, had a more positive showing, with revenue nearly in line with analysts' expectations.

The Google parent company said it saw second-quarter revenue rise to $69.69bn (£57.9bn) from $61.88bn (£51.3bn) a year earlier - nearly in line with the average expectation of $69.88bn (£58bn).

'Ad revenues still rising despite concerns of an overly-harsh tapering of demand'


Google's ad business was 81% of quarterly revenue, with sales coming in at $56.29bn (£46.8bn) - just below the average estimate of $56.67bn (£47.1bn).

Investors had expected ad revenue to falter as companies cut budgets to cope with rising costs.

Companies such as Alphabet are increasingly bringing in less cash from foreign revenue, due to the strong US dollar, and its shares have fallen more than 27% this year.

Overall profit was $16bn (£13.3bn) - or $1.21 per share, below the average estimate of $1.29.

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: "Alphabet's unshakeable presence in our daily lives means it falls into the essentials bucket for marketing teams, which is why ad revenues are still rising despite concerns of an overly-harsh tapering of demand.

"A positive reaction from the latest quarterly numbers has been incredibly hard-won, given the negative market sentiment surrounding broader tech.

"Alphabet's essential status for marketers makes it more able to stomach inflation, as its customer base is about as sticky as they come in the sector. However, it's not completely immune to residual issues from a tough economic backdrop."

Shares of Microsoft were down 0.5% in after-hours trading, while Alphabet was up 3% following the companies' results.

Microsoft ended the regular session down 2.7% and Alphabet ended 2.3% lower on the day.

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
El Salvador's Bitcoin Holdings Reach $350 Million
Teens Forming Friendships with AI Chatbots
WhatsApp Rolls Out Major Redesign
Neuralink's First Brain Implant Experiences Issue
Apple Unveils New iPad Pro with M4 Chip, Misleading AI Claims
OpenAI to Announce Google Search Competitor
Apple Apologizes for Controversial iPad Pro Ad Featuring Instrument Destruction
German politician of the AFD party, Marie-Thérèse Kaiser was just convicted & fined $6,000+
Changpeng Zhao Sentenced to Four Months in Jail
Biden Administration to Relax Marijuana Regulations
101-Year-Old Woman Mistaken for a Baby by American Airlines: Comical Mix-Up during Flight Check-in
King Charles and Camilla enjoying the Inuit voice singing performance in Canada.
New Study: Vaping May Lower Fertility in Women Trying to Get Pregnant
U.S. DOJ Seeks Three-Year Sentence for Binance Founder Changpeng Zhao
Headlines - Thursday, 23 April 2024
Illinois Woman Wins $45M Lawsuit Against Johnson & Johnson and Kenvue for Mesothelioma Linked to Baby Powder
Panama's lates news for Friday, April 19
Creative menu of a Pizza restaurant..
You can be a very successful player, but a player with character is another level!
Experience the Future of Dining: My Visit to an AI-Powered Burger Joint
Stabbing rampage terror attack in Sydney, at least four people killed, early reports that a baby was among those stabbed.
Iran fired more than 300 drones and missiles at Israel overnight. Israel Reports Light Damage After Iran Launches Large Strike.
I will never get enough of his videos and the pure joy and beauty of these women!!
Scientists at the University of Maryland have developed an "invisibility cloak", for AI using adversarial patterns on a sweater, making the wearer nearly undetectable to standard object detection methods.
Lamborghini Bids Farewell to Its Best-Selling Sports Car: The Huracán
Sam Bankman-Fried Appeals 25-Year Prison Sentence for $8bn FTX Fraud
OJ Simpson, ex-NFL star who was acquitted of murder, dies aged 76
British Backpacker Imprisoned in Notorious Bolivian Prison: Family Raises Funds for Legal Fight and Essentials
Argentina: Venezuela Cuts Power to Embassy after Opposition Meeting
El Salvador Offers 5,000 Passports to Skilled Foreign Workers: Tax-Free Relocation and Citizenship
Panama Papers Trial Begins: Founders of Mossack Fonseca Face Money-Laundering Charges
75 Becomes the New 65: Retiring in Your 60s Unrealistic as Life Expectancy Increases and Costs Rise
Total Solar Eclipse of 2021: 32 Million Witness the Mystical, $1.5bn Spectacle Sweep Across North America
New shopping experience…
New world, new reality, let’s get used to it
UK Company Passes Milestone in Developing Space-Based Solar Power, Aiming to Power a Million Homes and Provide Constant Energy
Mexico Breaks Diplomatic Ties with Ecuador after Police Storm Embassy, Arrest Former Vice President
Monty Python were so ahead of their time
If there's a will, there's a way!
Rules about how to dress are important, but not so much if you have a lot of money.
Body Armor Firm Showcases Stab-Proof Vest in Demo on CEO
Mexico Cuts Diplomatic Ties with Ecuador After Embassy Stormed in Quito
Here is a tattoo idea, for engineers
Zoraya Ter Beek, a 28-year-old woman from the Netherlands, will undergo euthanasia in May due to severe mental health challenges
Here's a video featuring Fidel Castro, where he discusses his stance against war and his commitment to preserving life, positions that have put him at odds with the USA:
Woman reaches behind and steals gun from a security guard and shoots three people while getting detained in Chile
Take a walk around the safe and thriving downtown San Salvador.
Joe Biden criticised by Trump campaign for declaring Transgender Day of Visibility on Easter Sunday
Macron says France will help Brazil develop nuclear-powered submarines
A video demonstrating women's self defense class in 1930
×