Microsoft and Alphabet lead the earnings releases after the close

Big Tech leaders Microsoft and Alphabet will lead the earnings release is after the close.

MICROSOFT

Microsoft's growth is likely to have slowed down in the last quarter as economic concerns dampened corporate demand for its software and cloud services. Analysts anticipate

• 3% revenue growth for the company, a significant decrease from the 18% growth a year earlier.
• net profit to remain unchanged from a year ago, with analysts predicting revenues of $51.02 billion and a net income of $16.69 billion for the period.
• EPS are expected at $2.23 versus $2.22 last year (in the 3rd quarter)

The growth of Microsoft's Azure cloud computing business, the main driver of the company's recent growth, is expected to slow to a record low of 26% for the quarter. This slowdown could persist into the next quarter, with FactSet analysts estimating a further decline to 25%.

Despite the bleak outlook for its key business, Microsoft's stock has risen by 17% this year, partly due to investor excitement over the company's adoption of generative artificial intelligence Artificial Intelligence Artificial Intelligence (AI) is defined as the automation of robotics and its influence and/or adoption within existing technologies.In recent decades, the evolution of technology has quickly since led to the gradual adoption of AI in several aspects of our lives, including investing or trading.One of the most pertinent is its impact in the financial services industry, which provides a wide range of possibilities.How Can AI Change the World?Perhaps more so than any other technology, AI has the p Artificial Intelligence (AI) is defined as the automation of robotics and its influence and/or adoption within existing technologies.In recent decades, the evolution of technology has quickly since led to the gradual adoption of AI in several aspects of our lives, including investing or trading.One of the most pertinent is its impact in the financial services industry, which provides a wide range of possibilities.How Can AI Change the World?Perhaps more so than any other technology, AI has the p Read this Term (AI) technology, such as the viral chatbot ChatGPT. Microsoft has invested billions of dollars in OpenAI, the creator of ChatGPT, and owns a 49% stake in the company. The tech giant has rolled out or announced plans to deploy ChatGPT across its products, including Bing search and Microsoft 365. However, it is not expected to impact earnings Earnings A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price Read this Term in the quarter (for now at least).

Microsoft's other business areas, such as office software and the Windows operating system, are also expected to experience a slowdown as personal computer sales suffer.

Microsoft CEO Satya Nadella had previously cautioned that a sluggish economy would affect the company's cloud business, with many customers looking to reduce their cloud computing expenses amid economic uncertainty.

Microsoft shares are trading down $5.66 or -2.01% at $276.08. Looking at the hourly chart, the price is breaking away from its 200 hour moving average currently at $281.81 (green line in the chart below) the price approaches the 38.2% retracement of the move up from the March 2 low. That level comes in at $274.40. The most recent high price reached up to $292.08 (on April 6)

ALPHABET

Meanwhile, Alphabet earnings will also be announced, with a focus on ITSAI plans, ad business, and cost-cutting efforts.

Expectations are for

• Revenues of $68.96 billion,
• EPS of $1.08,
• Google Ad Revenue of $53.75 billion, and
• YouTube Ad Revenue of $6.64 billion.

Google's AI chatbot, Bard, has underperformed, causing concerns about the company's competitiveness in the AI race compared to Microsoft's OpenAI-backed ChatGPT. Despite this, Alphabet shares have risen over 20% this year, outpacing the Nasdaq's 14% increase.

Google has been cutting costs this year, announcing plans to cut 12,000 jobs in January.

Looking at the hourly chart of GOOGL, the pair is down $1.54 or -1.47% at $104.43. The price is testing is a 200 hour moving average today currently at $104.07. The low price today reach $104.15 just above that level. A move below would have traders looking toward $101.30. That level is the 38.2% retracement of the move up from the February 24 low to the high reached on April 6.

Chipotle will also announce after the close:

• EPS expected at $8.92
• Revenues of $2.34 billion

Chipotle (CMG ) shares are trading at $1785.70 that is down $-11.24 or -0.63%. The high price over the last week of trading reached $1816.96. That was the highest level since November 2021.