Why Microsoft jumped and Google slumped when both beat expectations
Microsoft and Alphabet’s cloud computing businesses both grew double digits last quarter, but investors only liked one result. The Breakdown explains what that reveals about the market’s AI fixation.
It’s a sure sign of AI tunnel vision when Google owner Alphabet can report the GDP of a small country in quarterly revenue, claim double-digit growth, beat profit expectations and yet be greeted by investors with a shrug and thumbs down.
Its shares were down about 6 per cent in after hours trade while its sworn rival, Microsoft, enjoyed a bump.
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Nick Bonyhady is a technology writer for the Australian Financial Review, based in Sydney. He is a former technology editor, industrial relations and politics reporter at the Sydney Morning Herald and Age. Connect with Nick on Twitter. Email Nick at nick.bonyhady@afr.com
