Microsoft earnings look good on the surface.
EPS: $2.32 per share, adjusted vs $2.29 per share as expected by analysts
Revenue: $52.75 billion vs $54.94 billion as expected by analysts
Azure cloud growth slowed to 31%, just beating analysts’ expectations
Year over Year total revenue was up 2% quarter ending Dec. 31, slowest growth since 2016
“The More Personal Computing segment featuring Windows, Xbox, Surface and search advertising contributed $14.24 billion, representing a revenue decline of 19%.” -CNBC Earning Article
Earnings call starts at 5:30pm eastern. This could influence the direction of the QQQ tomorrow.
So are these good earnings? What I am considering is that they are laying off 10,000 people. Why? Because business is slowing. You can see that in their Personal computing and their overall growth year over year.
QQQ reaction after hours goes against my PSQ and SQQQ positions pretty hard. Yet, that’s after hours. A lot of what I’m watching could be short covering. There was heavy volume on the short-term puts on MSFT today. Tomorrow will be a better indicator of how the QQQ’s will perform.
In the meantime, patients.
Live Loud!
Trent