Huawei's Covert US Funding Scheme Raises Eyebrows Amid Export Ban 
Tesla's Supercharger Shake-up Sparks Chaos: Suppliers in Limbo Over Email Directive 
To make AI safe, governments must regulate data collection 
Leak: Huawei's Kirin PC Chip, Qingyun Notebooks to Launch Next Month 
Bitcoin's Ongoing Battle at $64K; Cardano's Hoskinson Ends Ripple Debate 
Russia's Crypto Clampdown: Tight Regulations Aim to Curb Cryptocurrency Activities 
Samsung's Galaxy S25 Rumored to Boost Longevity with 'Battery AI' 
Justin Sun Dominates Swell L2 with 46% of Deposits in eETH 
Shiba Inu's Remarkable 12% Surge Fueled by Record SHIB Burns, Community Momentum 
Shiba Inu Burn Rate Skyrockets: 81M SHIB Destroyed, Prices Surge 
Walmart Spotted with Tesla Semi in California as True Launch Date Revealed 
Tesla Cybertruck 'Odyssey' Roars into Europe, Berlin Display Kicks Off Tour 
Dogecoin Surges 13% as Network Activity Soars, Hits 28,000 New Addresses 
South Korea Excludes Crypto in Donation Law Update, Charities at Risk 
Coinbase Faces New Lawsuit Alleging Investor Deception in Digital Asset Sales 
Taiwan is experiencing millions of cyberattacks every day 
Tesla Enhances Model Y Lineup with Longer-Range Variant, Price Adjustment 
Wall Street had high expectations for Alphabet and Microsoft as both tech giants released their quarterly results on Tuesday.
While both companies reported revenue and earnings that exceeded analysts' estimates, investors reacted less than enthusiastic, with shares falling in extended trading.
Designed for Perfection
Alphabet and Microsoft have been riding high on the stock market, with Alphabet's shares soaring 56% and Microsoft's climbing 70% over the past year.
This surge in stock prices reflects investor optimism fueled by strong performances and strategic moves by the companies, including significant investments in artificial intelligence and aggressive cost-cutting measures.
Despite the high expectations leading up to their earnings reports, investors were disappointed with the results. While Alphabet reported a 13% increase in revenue, reaching $86.31 billion, and Microsoft saw an 18% revenue growth, reaching $62.02 billion, both companies fell short in certain areas, particularly in Google's ad business.
Alphabet's advertising revenue of $65.52 billion missed analysts' estimates, with YouTube also falling slightly below expectations. While both companies exceeded expectations in their cloud businesses, with Google Cloud reporting 25% growth and Microsoft's Azure and other cloud services expanding by 30%, it wasn't enough to satisfy investors' lofty expectations.
Market Unrealistic Expectations
Analysts and market observers have noted that the market may have set unrealistic expectations for Alphabet, given its size and dominance in the industry.
According to CNBC, despite producing healthy advertising results, some analysts deemed Alphabet's performance insufficient.
Similarly, shares of chipmaker AMD also dropped in after-hours trading despite reporting better-than-expected revenue numbers and meeting profit estimates. The market's reaction underscores the challenge of meeting heightened expectations, even for companies with solid fundamentals and growth prospects.
Looking Ahead
Attention now turns to Thursday, when Amazon, Apple, and Meta will report quarterly results.
According to the Wall Street Journal, Alphabet and Microsoft are tech giants whose stock prices have climbed to record highs in recent months, setting the stage for potentially high-stakes earnings announcements. As investors await these reports, the market remains on edge, grappling with the delicate balance between expectations and reality in the ever-evolving tech landscape.
Photo: Matthew Manuel/Unsplash
