Finimize - 👀 The first Big Tech results are in

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Today's big stories

Microsoft and Alphabet reported quarterly results that were full of ups and downs
Here's how you can profit from the yen’s downward slide – Read Now
HSBC said all the right things, but it still couldn't please investors

Big Tech, Bigger Expectations

What’s Going On Here?

Microsoft pulled off reported better-than-expected quarterly results late on Tuesday while Google-parent Alphabet fell short, but investors tarred them both with the same brush.

What Does This Mean?

Microsoft’s previous report disappointed analysts earlier this year, but the tech giant sure made amends to that last quarter: its darling cloud computing business made 20% more revenue versus the same time last year, while its business productivity segment – think Office 365 and LinkedIn – grew 9%. Layer on a better-than-expected performance from its PC segment, and both Microsoft’s revenue and profit tidily beat expectations. But since that cloud revenue actually grew slower than expected, hard-to-please analysts still sent the firm’s shares down 2%.

And while Alphabet managed to grow its cloud segment’s revenue by an impressive 38% last quarter, its all-important ad business – which spans across YouTube and Google and makes up the bulk of its revenue – grew a measly 3%, seemingly following in Snap’s ominous footsteps from last week. Alphabet, then, disappointed in both revenue and profit, so downcast investors duly sent its stock down 6%.

Why Should I Care?

For markets: Gimme five.
The rest of the Big Tech firms – Meta, Apple, and Amazon – are due to report results this week. And since the superstar fivesome make up nearly half of the tech-heavy Nasdaq, the group’s performance could dictate the direction of the index in the going forward. If Microsoft and Alphabet’s negative receptions are anything to go by, the index – which has dipped over 30% this year and lost about $6 trillion in value – could have even further to fall.

Zooming out: Show-ers, not growers.
Growth is harder to come by during a downturn, so eagle-eyed analysts will be expecting tech companies to cut costs and increase efficiencies. That could include cozying up to blockchain technology: see, while enthusiasts might get dizzy over its world-changing decentralization potential, companies seem focused on more vanilla uses. In fact, a Bloomberg survey of tech executives showed they’re most excited about blockchain’s ability to speed up transactions, improve supply chains, and cut costs. How seductive…

You might also like: What to watch (and not watch) this earnings season.

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Analyst Take

Japan’s Been Spending Billions To Slow The Yen’s Slide. It’s Not Working.

By Russell Burns, Analyst

Japan’s been doing something lately that it almost never does.

Over the past few days, it has intervened in the currency market, spending billions to buy up Japanese yen in an attempt to slow its rapid decline.

It’s the second time Japan has done so in as many months, and it might not be the last.

So it’s worth considering why Japan’s doing this now and what the opportunity is.

That’s today’s Insight: how to profit from the weakness in Japan’s yen.

Read or listen to the Insight here

Finally, a brand aggregator that you can invest in

It’s easy to start an online business these days. But growing it to peak levels is no small feat.

You’re taking on product development, marketing, and distribution… to name just a few.

There are tons of small brands with great ideas and healthy sales. They just lack the resources to scale to their potential. And that’s where brand aggregators like Upexi shine.

Upexi buys brands, grows sales, and cuts costs, which means more profit. Put a bunch of these brands together, and you have a diversified portfolio – one that you have the chance to invest in.

That’s kind of a big deal: brand aggregators are usually private companies. And the private ones alone have raised over $12 billion: the market is big, and it’s growing.

Upexi, though, is listed on the Nasdaq (ticker: UPXI). Now could be the perfect time for you to get involved.

Find Out More

Disclaimer

This content is for US investors only, if you are not a US investor please ignore this content. This content is a paid advertisement for Upexi (NASDAQ: UPXI) from Interactive Offers and Finimize. This is not Finimize editorial content. Finimize received a fixed fee for producing, hosting and promoting this content on behalf of Upexi, totalling $23,000. Other than the compensation received for this service, Finimize and its principals are not affiliated with either Interactive Offers or Upexi. Finimize and its principals have no ownership in Upexi. The content on this page should not be taken as advice, an endorsement, or a recommendation from Finimize and its principals to buy or sell any security. Finimize and its principals have not evaluated the accuracy of any claims made on this page. Finimize and its principals recommend that investors do their own independent research and consult with a qualified investment professional before buying or selling any security. Investing is inherently risky and capital is at risk. Past performance is not indicative of future results.