Breaking Down Microsoft and Alphabet’s Results, What to Expect From Meta & The Health of the Subscription Model 7/27/22

TechCheck

CNBC

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

4.5 • 66 Ratings

🗓️ 27 July 2022

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Our anchors kick off today’s show breaking down earnings results from Microsoft and Alphabet. Then, Mizuho Analyst James Lee and RBC Capital Markets Analyst Rishi Jaluria join for more insight into the two tech giants. Next, we cover Cathie Wood’s latest trade and Shopify’s second quarter results. With Meta earnings on deck this afternoon, Big Technology Founder Alex Kantrowitz joins on what to expect from the report. We also hear from CNBC’s Bob Pisani on the performance of some of the biggest names in tech this year. Later, we check on the health of subscription models amid the current down cycle. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Transcript

Click on a timestamp to play from that location

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. Good Wednesday morning. Welcome to Tech Check. I'm Carl Kintania with John Ford and Dear Durbosa. Today, the NASDA tries to break a three-day losing streak as reports from the mega-caps continue to roll in. And investors await the Fed's decision at 2 p.m. Eastern time. Microsoft and
0:22.4	Alphabet, the key gainers here, look at those numbers and whether they're really something to
0:26.5	celebrate. Also, speaking of low expectations, meta tonight facing down its first revenue
0:31.7	decline ever. We're going to discuss that setup, and then more on tech's biggest moves today
0:37.0	outside the mega caps, Spotify's subscription gains, Shopify's Week Outlook.
0:42.0	That's all coming up this hour, John.
0:43.8	Yeah, Carl, we're going to kick off today's feed with the results from Alphabet and Microsoft.
0:48.5	And let's start with the good.
0:49.6	Both stocks trading higher, investors pointing to strength in their core franchises and the low expectations
0:55.6	going into the quarter. Look how much they're trading higher, though. I mean, you know, more
0:59.7	than 4% each, 4% for Microsoft, more than 5% for Alphabet. Nothing like the disappointments
1:07.6	like Snap last week. Pretty strong forecast from Microsoft. And looking
1:12.6	ahead, an upbeat tone on both calls despite calling out the macro uncertainty and currency headwinds.
1:18.9	That said, though, how good were these quarters really? Both companies missed estimates. These are
1:23.9	pretty high-growth stocks with slowing growth. Microsoft talked about weakness in gaming, deteriorating PC sales.
1:30.3	Alphabet saw weakness in YouTube particularly.
1:33.3	Both missed estimates within their cloud businesses.
1:36.3	D, currency's got something to do with this on both counts.
1:41.3	When it comes to Microsoft, the core cloud business did grow meeting expectations.
1:47.9	What's weird about this to me is not that the stocks are higher. It's how much the stocks are higher,
1:55.3	given that usually in a quarter like this, when companies sort of meet expectations,
2:00.4	the stocks go down. We have to explain,
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from CNBC, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of CNBC and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.