Jiří Filip Press Release: The summer results season is slowly coming to an end, and this quarter also brought a lot of interesting information from behind the scenes of global companies. One of the most anticipated results was undoubtedly that of the tech giants. Many of them rode the AI boom of recent months and saw their share prices rise to record highs. But was this growth justified? XTB analyst Tomas Vranka solved together with his colleagues Jaroslav Brycht a Štěpán Hájk just this topic on the new one Talking about markets. In this article, we present a summary of the most important information from the results Apple, Microsoft, Alphabet, Amazon and Meta.
Apple Lossless Audio CODEC (ALAC),
Investors have been waiting for Apple's results perhaps the most of all companies. For several months now, information has been coming from all over the world about a significant slowdown in sales of smartphones and computers. However, Apple only partially confirmed this information. Although sales of iPhones decreased slightly year-on-year, it was not a disaster. Mac sales also fell, but less than expected. However, he helped Apple a lot 8% growth in services – AppStore, Apple Music, Cloud, etc. This segment has almost twice the margins compared to the sale of physical products, so after accounting for this segment there were total sales companies year-on-year lower by only 1,4%.
In the results, Apple also brought some very positive information. The company already has more than billion users paying for some of its services and overall has more than 2 billion active devices, which increases the strength of the ecosystem. The company is doing well in China or India, for example, and many users who bought a Mac or Apple Watch last quarter were buying such a device for the first time. So the company's results weren't ideal, but they weren't downright bad either. The current quarter will be important. Apple is behind 3 consecutive quarters of sales decline, and if this trend were to continue, it would be the longest decline in sales in the last twenty years or so. Stocks they reacted to the results a decrease of about 2% and the price then continued to fall rapidly even within the following trading day.
Microsoft
The second largest company is Microsoft. He has a lot behind him good first half of the year, in which he attacked Google, which he wants to take away some of the search and advertising market share. Microsoft divides its business into three main segments. The first and largest of them is cloud. The latter was the engine of the company's growth in recent years, but the current worse economic situation forces companies to start saving, which is also reflected in reduced expenses on the cloud. So the growth rate is slowing down. The second segment is a segment office tools and productivity. This includes, for example, subscriptions to office suites that include Word, Excel and PowerPoint applications. Here they were results good and they didn't bring any big surprises. The last segment are Windows operating system license and things around games. In the long term, it is about the most problematic part of the business Microsoft, which the company confirmed even now. The problems are mainly due to weak sales of personal computers worldwide, which means fewer Windows licenses sold for Microsoft. Stocks they reacted to the results a decrease of about 4%.
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Parent company Google came under pressure precisely because of Microsoft, and the world began to wonder if the company's monopoly on browsers and search was really under threat. He didn't even help the company a slowing advertising market, which put the company's shares under pressure in the past year. However, recent results have shown positive trend, advertising revenue is growing and YouTube, which also falls under the company, is also showing better results. Google is also one of the big three cloud ones players, along with Amazon and Microsoft, albeit the smallest so far. In this area, the company increased sales by almost 30% and made a profit for the second quarter in a row. In the future, it will be a segment that can bring the company billions of dollars a year in profit. Stocks so in the end they reacted positively to the results and grew by about 6%.
Amazon
Most of us know Amazon as a company that sells various goods through online platforms. However, this segment of the company year-on-year only increased by 4%, because consumers are careful in today's situation and don't spend money on things they don't necessarily need. However, Amazon is also the biggest a global provider of cloud solutions, which provides under the brand name AWS. As we mentioned above, there is a slowdown in this market, which Amazon has confirmed. However, the company noted a very good growth in the advertising segment when searching for products and also in the subscription segment, where he also provides his service Premium. All important segments thus grew at a double-digit rate, which the market appreciated and shares rose about 9%.
Meta
Meta is the smallest company in terms of market capitalization among these giants. The company is over a very difficult quarter, when it suffered from a slowdown in advertising, heavy investments in virtual reality, as well as changes made by Apple to its operating system, which made it difficult for Meta to collect data about its users. However, the company began to take steps to reduce costs and the advertising market began to return to normal. This has helped Meta achieve a lot good results. The company has exceeded expectations in terms of profits, revenue and also platform users Facebook, Instagram, Messenger and WhatsApp. For the first time in a long time, the company's revenue grew at a double-digit rate, and Meta is expected to maintain this growth in the current quarter. Stocks after the results are published increased by 7%.
If you want to learn more about the current results of these companies, the new Market Talk is available for real XTB clients on the xStation platform in the News section. If you are not an XTB client, market chat is also available for free on this website.
