Microsoft Earnings Trigger Market Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: CNBC
- Market Reaction: The stock market fell on Thursday, led by Microsoft, whose stock dropped nearly 12% after earnings failed to boost Azure growth, indicating investor caution towards tech stocks.
- Earnings Analysis: Microsoft exceeded revenue and earnings estimates for Q2 FY2026, yet Azure's lack of significant growth highlights challenges in balancing capital expenditures and improving margins.
- Strong Meta Performance: In contrast to Microsoft, Meta reported a 24% revenue increase, with its stock climbing over 9%, reflecting strong market confidence and the positive impact of increased investment despite overall market weakness.
- Apple's Uncertain Outlook: Heading into its earnings release, Apple saw a modest decline, with market focus on its ability to manage costs from memory shortages and the implications of its partnership with Alphabet to utilize Gemini AI models.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 338.25 USD with a low forecast of 279.00 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
27 Buy
7 Hold
0 Sell
Strong Buy
Current: 336.010
Low
279.00
Averages
338.25
High
390.00
Current: 336.010
Low
279.00
Averages
338.25
High
390.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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US Stocks Plummet as Microsoft Reports Disappointing Earnings
- Microsoft's Earnings Decline: Microsoft shares plummeted over 12% after reporting disappointing cloud business growth, significantly impacting the broader market, particularly technology stocks.
- Meta Platforms' Strong Rebound: Meta Platforms' stock rose more than 7% after reporting Q4 revenue of $59.89 billion, exceeding market expectations, thus providing a positive influence on the market.
- Surge in Energy Prices: WTI crude oil prices increased by over 3% to a 4.25-month high, driven by President Trump's call for a nuclear deal with Iran, boosting energy producers' stock prices.
- Unemployment Claims Data: Initial jobless claims in the US fell by 1,000 to 209,000, indicating a slightly weaker labor market, while continuing claims dropped to a six-month low, suggesting overall market strength.
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