Microsoft exceeds earnings expectations with strong performance in cloud services

Microsoft announced impressive first-quarter financial results for the 2024 fiscal year. Its profits and revenue exceeded market expectations, mainly due to the accelerated growth of cloud services.Earnings per share were $3.30, exceeding market forecasts of $3.10; revenue reached $65.59 billion, exceeding expectations of $64.51 billion, demonstrating the strong performance of its core business.

Among them, Microsoft's cloud infrastructure Azure performed particularly well, with a growth rate of 33%, higher than analysts 'expectations of 32.8%.This growth allows Microsoft to better compete with cloud computing giants such as Amazon and Google.Azure's contribution played an important role in the smart cloud business, which reached US$24.09 billion in revenue, slightly exceeding forecasts.

In addition, Microsoft has also invested significantly in artificial intelligence, partnering with BlackRock to establish a $30 billion artificial intelligence fund.As a major investor in OpenAI, Microsoft is increasing its investment in artificial intelligence infrastructure and chips in an effort to take a leading position at the forefront of this transformative technology.

Meta beats earnings expectations, but user growth not so good

Meta also reported better-than-expected financial performance, with earnings per share of $6.03, exceeding forecasts of $5.25, and revenue of $40.59 billion, slightly above the market consensus of $40.29 billion.However, the company's daily active users failed to meet expectations, recording 3.29 billion, lower than analysts 'expectations of 3.31 billion, which aroused investor concerns.

Meta's outlook guidance for the fourth quarter is optimistic, with revenue expected to be between $45 billion and $48 billion, above the analyst consensus of $46.3 billion, demonstrating the company's confidence in its ad-driven business model.

However, Meta expects expenditures to reach US$96 billion to US$98 billion in fiscal 2024, reflecting Meta's significant investments in Metaverse and Reality Labs, projects that have not yet turned profitable and may dampen investor optimism.

Starbucks faces slowing sales, strategic reorganization looms

Starbucks 'latest quarterly results failed to meet Wall Street expectations, as sales fell for the third consecutive quarter in its two largest markets, the United States and China.

The coffee giant reported earnings per share of $0.80, well below expectations of $1.03, and revenue of $9.07 billion, also below market expectations of $9.36 billion.Global same-store sales fell by 7%, with sales in the United States falling by 6%, and China falling by as much as 14%, mainly due to intensified competition from China competitors such as Luckin Coffee.

Starbucks 'new CEO Brian Niccol admitted that a strategic reorganization is urgently needed to regain market share and consumer loyalty.The company plans to revisit its strategy, focusing on improving the customer experience and addressing challenges in key markets.

Outlook: cloud services and AI drive growth, consumer sector faces challenges

The latest quarterly results highlight strong demand for cloud services and artificial intelligence, while companies in the consumer sector are struggling to cope with slowing demand and competitive pressures.

Microsoft: Azure's continued growth and its aggressive investment in artificial intelligence keep Microsoft's prospects optimistic, especially in cloud service innovation.This performance may keep investors bullish.

Meta: Although Meta's results exceeded expectations and strong fourth-quarter guidance, indicating potential growth, continued investment in high-cost projects such as Yuanuniverse may dampen optimism when earnings lag.In the short term, Meta's stock remains neutral and needs to strike a balance between growth and expenses.

Starbucks: Faced with declining sales and the need for strategic adjustments, Starbucks's short-term prospects appear pessimistic. The company's future success depends on whether the strategy formulated by the new CEO can reverse the recent decline in sales and cope with competitive pressure in the China market.