Mega Cap tech earnings, Alphabet and Microsoft, plus Cruz faces a major setback for driverless cars in San Francisco.

It's Tuesday October 24th and welcome to the Tech Check podcast. I'm Dear

Chiposa.

And I'm Mark Gilbert.

Let's start with the two companies reporting numbers

today, D, Microsoft and Alphabet.

Now, a quick note, we are going to be recording

this just before those numbers break but I still think Gilbert we're going to give some good context and to how you can at least digest those earnings when they come out.

So the best place to start when I went this morning looking for how we were going to describe this story.

I looked at their stock performance. Quite simply, Google versus Microsoft year to date,

because it says a lot about where these two companies are at.

Microsoft of course was the early generative AI winner, the beginning of that hype cycle in

large part thanks to that huge deal with open AI. So if you look at that performance year today, January, February

outperforming Google, as satie Nadella, said all these wild things like he wanted to make Google

dance, right, Gohbert go Burton right and then the the first

half of this year was so sort of dominated by those AI headlines but then the

second half has sort of been I wouldn't say like a come to reality but has

definitely been less about the euphoria of AI. Yeah and Google answered that call

right from satinodala and they came out with their own suite of generative AI products which kind of put to rest the idea that Google was behind in this race.

The other thing to happen in the second half of the year, Treasury yields which we've talked about, they rose and then investors started to look back at that core currently

cash flow generating, can't emphasize that enough, cash flow generating businesses that took the focus.

So Microsoft, the core is PCs, enterprise software, and cloud.

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