After slow growth last year, Big Tech companies like Microsoft, Alphabet, and Snap are continuing their turnaround due to high earnings this season. Strong sales results led to high earnings in the last quarter that ended in September.
According to CNN,
“Google parent company Alphabet on Tuesday reported quarterly sales of $76.69 billion, up 11% from the same period in the prior year. The company also posted profits of $19.69 billion for the quarter. Meanwhile, Microsoft posted 13% year-on-year sales growth to $56.5 billion, also beating expectations. Microsoft’s quarterly profits hit $22.3 billion, up 27% from the year-ago period.”
On the other hand, Snap, the parent company of Snapchat, reported a high sales growth in the same quarter. It faced declining sales in the last two quarters. There is a net loss of $368 million. During this quarter, the company reported a revenue of nearly $1.2 billion, which was an increase of 5% from that of last year in the same period. The increase in sales also outperformed various analysts’ projections.
The string of results from these big tech companies came after these companies carried out mass layoffs as well as other cost-cutting moves during this one year. These companies took such steps when various advertisers and other clients limited their spending on these companies due to concerns over the macroeconomic environment.
Although these companies beat the expectations of Wall Street Analysts, the shares of Alphabet and Snap lowered by 5% in after-hours trading. However, Snap’s shares came up later on. On the other hand, the shares of Microsoft gained around 4% in after-hours trading.