Breakdown of the latest developments on the global exchanges
Apr 28, 2021, 9:00 AM GMT

Alphabet and Microsoft Book Massive Revenue Growth in Q1

Alphabet and Microsoft Book Massive Revenue Growth in Q1

Google's parent company Alphabet and Microsoft posted their quarterly earnings numbers yesterday after the market close. Both tech giants booked massive revenue growths in the first three months of the year, beating the initial forecasts.

Alphabet delivered $26.29 Earnings Per Share (EPS) vs $15.82 expected, which measures the company's best performance on record. Revenue was reported at $55.31 billion vs $51.70 expected.

Google's parent company Alphabet Inc. posted its strongest EPS data on record in Q1 of 2021

The revenue from YouTube advertising rose to $6.8 billion from the $5.22 billion that was recorded for the same quarter last year. Alphabet also stacked $4.07 billion in revenue from Google Cloud, which surpassed the $2.77 billion that was achieved in Q1 2020. The across the board robust performance gave investors plenty of reasons to remain optimistic despite persisting coronavirus uncertainty.

Sundar Pichai, CEO of Google and Alphabet, said:

“Over the last year, people have turned to Google Search and many online services to stay informed, connected and entertained. We’ve continued our focus on delivering trusted services to help people around the world. Our Cloud services are helping businesses, big and small, accelerate their digital transformations."

Meanwhile, Microsoft posted EPS of $1.95, beating the initial forecasts of $1.78. Revenue in Q1 was reported at $41.71 billion vs $41.03 billion expected. In terms of earnings, the company had its second-best quarter on record. Thus, Big Tech continues to deliver robust earnings numbers, following Tesla's report from yesterday.

Microsoft delivered its second-best quarter in terms of earnings on record

Satya Nadella, Chief Executive Officer of Microsoft, commented on the Q1 performance by stating that:

"What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry. Building their own digital capability is the new currency driving every organization’s resilience and growth. Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform."

Given the strong quarterly numbers that are being posted by Big Tech, stocks have once again started to rise in what looks like the early beginning of a new bullish rally.

As can be seen on the 4H comparison chart below, MSFT and GOOGL have both started a new uptrend at the beginning of April, following the conclusion of the preceding plateau in the stock market.

This positive development has strengthened the Nasdaq Composite as well, as the index was lagging behind over the past few weeks. Bullish sentiment is thus returning to the market.

Microsoft and Alphabet's robust earnings numbers are driving the Nasdaq composite higher