Alphabet, Microsoft, General Electric, and Snap — Stock Market Weekly Digest (24-28 July)
28.07.2023
4 minutes for reading
Alphabet Inc., Microsoft Corporation, General Electric Company, and Snap Inc. were in the spotlight this week. Let’s find out how their stocks reacted to the latest developments.
Snap stock lost 14% following the report
Snap Inc., which owns Snapchat, a popular social media platform, announced its Q2 2023 results on Tuesday 25 June. Revenue decreased by 3.89%, to 1.07 billion USD compared to the statistics for the corresponding period of 2022, exceeding analysts’ forecast of 946.71 million USD. The company has reported a drop in revenue for the second straight quarter.
Snap Inc.'s net loss for April to June was down 10.61% to 377.31 million USD or 0.24 USD per share. The number of daily active users (DAU) increased by 14%, amounting to 397 million. Snap Inc. expects this indicator to reach 405-406 million users in the third quarter. Revenue for July to September is projected to be 1.07-1.13 billion USD.
Snap Inc. (NYSE: SNAP) stock lost 14.23% on Wednesday 26 July following the release of quarterly statistics and a forecast, dropping to 10.73 USD per share. It is worth noting that the quotes have been going down for eight consecutive trading sessions, tumbling 23.31% over this period.
Alphabet stock reacted positively to an increase in profits
IT giant Alphabet Inc. released its report for Q2 2023 on Tuesday. Revenue from April to June rose 7.06% to 74.60 billion USD, and net profit increased by 14.79% to 18.37 billion USD or 1.44 USD per share. On average, experts surveyed by FactSet forecast quarterly revenue of 72.85 billion USD and earnings of approximately 1.34 USD per share.
Google ad revenues were up 3.30% to 58.14 billion USD in the second quarter. In particular, search engine ad revenue rose 4.77% to 42.63 billion USD, and YouTube ad revenue increased by 4.43% to 7.67 billion USD. Google Cloud service earned 8.03 billion USD, up 27.96% from the previous year.
In addition, Alphabet announced that Ruth Porat, the company’s chief financial officer, would take the role of president and chief investment officer of Alphabet Inc. and Google from 1 September 2023. Alphabet Inc. (NASDAQ: GOOGL) stock gained 5.78% on Wednesday, rising to 129.27 USD. It is worth noting that the shares have been rising for five trading days in a row.
General Electric shares rose in price following the report
General Electric Company, a US conglomerate, published its Q2 2023 report on 25 July. Revenue grew 18.22% to 16.73 billion USD, while experts expected the figure to reach 14.76 billion USD. GE Aerospace revenue showed an increase of 28% to 7.86 billion USD, and GE Renewable Energy revenue was up 24% to 3.85 billion USD. GE Power revenue, however, decreased by 1% to 4.15 billion USD.
General Electric Company's net profit for April to June amounted to 946 million USD or 0.86 USD per share. A year earlier, the company posted a net loss of 1.25 billion USD or 1.13 USD per share. The company’s management raised its net profit forecast for the full year 2023 from 1.7-2 USD per share to 2.1-2.3 USD.
On the day of the report, General Electric Company (NYSE: GE) shares added 6.27% to 117.16 USD per share, nearing a six-year high. It is worth noting that the quotes have surged 79.20% since January this year.
Microsoft stock is rapidly going down
Microsoft Corporation shared its Q4 and the full-year 2023 results on Tuesday. Revenue for April to June increased by 8.34% to 56.19 billion USD, and net profit was up 19.96% to 20.08 billion USD or 2.69 USD per share. Experts surveyed by FactSet estimated quarterly revenue at an average of 55.5 billion USD and earnings at 2.55 USD per share.
Quarterly revenue of the Productivity and Business Processes segment increased 10% to 18.30 billion USD, revenue from the Intelligent Cloud segment added 15%, rising to 24 billion while revenue of the More Personal Computing segment decreased 4% to 13.90 billion USD. Microsoft Corporation returned 9.7 billion USD to its shareholders as stock buybacks and dividend payouts over the quarter.
Revenue for the full fiscal year 2023 rose 6.88% to 211.92 billion USD, while net profit dropped 0.52% to 72.36 billion USD or 9.68 USD per share. Microsoft Corporation (NASDAQ: MSFT) quotes negatively reacted to the release of the quarterly and annual reports, tumbling 3.72% to 337.92 USD on Wednesday and 2.13% to 330.72 USD on Thursday.
Summing up
Alphabet Inc., General Electric Company, Microsoft Corporation, and Snap Inc. released their last quarter results this week, with the shares of the first two companies rising 6% following the financial statistics and stocks of the other two companies plunging 4% and 14% respectively.
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