Alphabet and Microsoft Stock Hit Record Highs After Strong Q3 Earnings
Alphabet and Microsoft surge to record stock prices after both tech giants report third-quarter earnings that easily beat analyst expectations. The impressive results highlight the resilience of the top tech companies amid ongoing supply chain and inflation concerns.
Shares of Alphabet and Microsoft rally to record highs on Wednesday after both tech giants report third-quarter earnings that easily exceed Wall Street expectations. Alphabet jumps almost 5% to push its market cap to nearly $2 trillion, while Microsoft rises 4% to reach a $2.43 trillion valuation. The strong performances of these two stocks lift the tech-heavy Nasdaq Composite even as the broader S&P 500 and Dow Jones Industrial Average experience slight declines.
Alphabet reports a massive 43% increase in advertising revenue to $53.1 billion, with YouTube ad sales climbing to $7.2 billion. Earnings of $27.99 per share easily top analyst estimates of $23.48. Unlike competitors such as Snap and Facebook, Alphabet successfully navigates Apple's iOS privacy changes, with Chief Financial Officer Ruth Porat noting only a modest impact on the company's advertising revenue.
Microsoft also delivers impressive numbers, with revenue increasing 22% year over year to $45.3 billion and earnings of $2.27 per share beating estimates of $2.07. Chief Financial Officer Amy Hood expects continued momentum in the current quarter, projecting a 2% increase in gross margin. These robust results from both companies demonstrate their continued resilience and ability to grow despite broader economic concerns like inflation and supply chain constraints.