This week, the financial reports of technology giants are hitting the headlines, pushing the Q2 earnings season of the US stock market to a climax! The four giants of Microsoft, Apple, Amazon, and Meta release earnings this week, and the market is eagerly awaiting. Microsoft will be the first to report after market close on Tuesday.
Key points:
How is the progress in AI monetizing? What about capital expenditures?
Tech giants are heavily investing in AI, and the market hopes to see monetization soon. Google delivered a Q2 earnings report that exceeded expectations, but its stock price was under pressure due to significant investments in AI, with monetization progress falling short. It's important to note that increased capital expenditures can significantly impact company profits. Meta, in its fervor for the metaverse last year, even changed its company name, but the results were disappointing.
In this earnings report, the market will scrutinize Microsoft's Office 365 and Copilot assistant, as well as OpenAI's commercialization progress, with attention potentially surpassing that on Microsoft's Azure cloud business. Capital expenditures are also a focus of market attention.
What role does AI play in driving Microsoft's Azure cloud business?
Microsoft's Azure cloud business is widely seen as the next growth driver. With AI support, Microsoft's cloud business has shown impressive growth, increasing its market share steadily, suggesting a competition with AWS, the global leader in cloud services. In this earnings report, the cloud business will undoubtedly be the market's focal point.
Will the Blue Screen Incident affect Microsoft's goodwill?
Recently, the globally shocking Blue Screen Incident exposed vulnerabilities in the electronic information age. Although Microsoft was not the protagonist, CrowdStrike systems are primarily developed on the Microsoft Windows platform, and only Windows systems were affected by this incident, with Apple's MacOS systems unaffected. During the earnings conference call, attention will be on the company executives' comments regarding this incident.
Other businesses: gaming, PC hardware, LinkedIn recruitment, etc.
Key points regarding Microsoft's other businesses: To what extent did the acquisition of Blizzard enhance Microsoft's gaming performance? Can AI lead a new wave of PC upgrades globally?