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TechCheck

Breaking Down Microsoft and Alphabet Earnings, Robinhood’s Lackluster Quarter & Informatica CEO on IPO Day

TechCheck

CNBC

Management, Cnbc, Tech, Faang, Investing, Business, Disruptors, Technology

4.566 Ratings

🗓️ 27 October 2021

⏱️ 44 minutes

🧾️ Download transcript

Summary

Our anchors start off today’s show with Microsoft and Alphabet’s strong quarters reported after the bell yesterday. Then, Morgan Stanley Analyst Keith Weiss, who has an overweight rating on Microsoft, joins to further discuss the company post-earnings. Next, Piper Sandler’s Rich Repetto is here to talk Robinhood’s latest quarter, which sent shares below their IPO price. Also, CNBC’s Julia Boorstin joins to break down the impact of Apple’s privacy changes on Twitter and Spotify. Then, Baird Senior Research Analyst Colin Sebastian is here for more on Alphabet post-earnings. Later, Informatica CEO Amit Walia joins from the New York Stock Exchange as the company returns to the public markets after going private in 2015. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Transcript

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0:00.0

I'm Carl Kintanilla. You're listening to CNBC's Tech Check. Our show is live weekdays at 11 a.m. Eastern. Listen in.

0:24.8

Good Wednesday morning.

0:26.3

Welcome to a big hour of tech check.

0:28.5

I'm Carl Kintanilla with John Ford and Dear Drubosa.

0:33.5

Earnings breakdowns on Microsoft, Alphabet, Twitter, all coming up this hour.

0:38.1

Plus Robin Hood's Crypto Crunch, why those shares are awfully close to an all-time low this morning.

0:44.4

Later on, a new name to watch in chips and AMD's surge in sales, D.

0:50.3

But we'll start with results from Alphabet and Microsoft to Microsoft Revenue grew by 22% in the quarter.

0:54.1

That's its fastest pace since 2018 with Cloud, the key driver of that growth.

0:59.7

That segment up more than 30%. And despite PC supply constraints, the company's personal computing business grew 12%. The stock currently trading at all time high levels, 323 and change.

1:06.4

We also saw very strong results out of alphabet with revenue growth of 41% year over year.

1:12.9

And while all eyes were on the potential impact of Apple's privacy changes, CFO Ruth Porrits said the new features had only a, quote, modest impact on YouTube.

1:22.6

Shares of both companies having a strong year, Microsoft and Alphabet, outperforming the S&P since January by a wide

1:29.0

margin. Carl, I heard you talking about this earlier with Jim and David, the sheer scale of

1:35.3

these numbers. I mean, when you put it in context, Google search revenue was $11 billion

1:40.2

more this year than last year at the same time. And John, it just sort of kind

1:45.6

of begs disbelief. Same with Microsoft. I mean, firing on all different cylinders. We talked

1:50.4

about cloud. We talked about PC. What about gaming, right? Heading into the holiday season.

1:54.5

Well, yeah, I think this makes perfect sense. We talked about this setup on Monday. The contrast

1:59.2

between the sort of consumerish targeted economy

2:03.3

that's affected by these iOS changes, and then the enterprise software market that's really

2:08.5

not. And Carl, I think Google is an interesting case because when you look at search,

...

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