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Google and Microsoft profits lower Big Tech’s bar.

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Both firms announced worrying numbers, but Wall Street feared far worse.

Alphabet Inc. and Microsoft Corp. both missed Wall Street’s estimates Tuesday, although their prices rose after hours.

Concerns over a slowdown among Big Tech names had Wall Street on edge coming into this week.

“Fears and layoffs have reduced Big Tech’s bar.”

The responses to Tuesday’s earnings failures illustrate that worries and reductions have reduced the bar for even the biggest Big Tech businesses.

Microsoft MSFT, 0.49 percent missed sales and profit projections and estimated its cloud business, Azure, will increase 43% in the September quarter.

Microsoft shares surged after the estimate of a 4-percent drop from the previous quarter’s growth pace.

Alphabet GOOGLE, -1.16 percent GOOG, -1.29 percent announced a second-quarter profits dip and blamed ad buyer slowdowns. After-hours trading saw Alphabet shares rise 5%.

These data aren’t “great,” but they’re good enough to avoid destroying Meta Platforms Inc. shares. Both firms were macroeconomically cautious and sluggish.

YouTube’s revenue climbed just 3% in the second quarter, compared to 14.3% in the first, due to advertising pullbacks and TikTok rivalry.

The pandemic PC boom has ended, hurting Microsoft’s PC business. Advertising slowdown affects LinkedIn revenue, while Xbox sales slows as pandemic-fueled videogame rush fades.

They’re safer. Snap Inc. SNAP, -1.25 percent emphasized online ad spending problems last week, and its shares fell as inflation, consumer behavior, and interest rates climbed.

Microsoft and Google avoided the same fate, although it may take longer for the downturn to reach such massive, powerful corporations.

But make no mistake, there is a slowdown, and it’s harming Big Tech, just maybe not enough to reduce their huge market capitalization – yet.


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