Introduction
Microsoft will announce Fourth Quarter earnings on Tuesday. Tech companies are likely to invest in AI3 Microsoft artificial intelligence Wall Street is also watching this very closely.
Referring to this quarter, Previous Microsoft earnings were $2.69 per share and revenue was 56.2 billion dollars. But this time Microsoft thinks the earnings must be $2.94 per share and revenue up to $64.5 billion as per reports from Bloomberg.
Cloud and AI Revenue
Microsoft expected its Cloud revenue to be by $36.8 billion. AI3 Micorosft includes Azure which is expected to be $28.7 billion.
AI3 Microsoft’s Stock Performance
AI3 Microsoft’s impact on its share prices is up by 13% till now. This increase makes the AI3 Microsoft team confident and its investors also with positive attitude toward good future growth.
AI3 Microsoft Comparison with Google and Amazon
Google’s parent company Alphabet reported its earnings last week and Microsoft announced after a week. Google said about Alphabet that due to interest in AI products cloud revenue is more than expected. But no specific numbers provided by Alphabet on how it is impacting its cloud business. Researcher Mr. Stephen Ju said that revenue benefits from AI spending might not show until the first half of 2025.
Microsoft has been gaining more market share from Google and Amazon this report was provided by UBS Global Research analyst Karl Keirstead. The reason behind these gains is ai3 Microsoft according to customers and partners. Cloud customer services are more attractive because of Microsoft’s early investment in AI3.
Investment in AI3 Microsoft
In the third Quarter, Investors are excited to check how much amount of funds are spent on AI infrastructure by Microsoft. Microsoft reported that it had spent $14 billion to build an AI infrastructure. This clearly shows that Microsoft is very serious about improving its AI capabilities and its infrastructure.
But Alphabet is also not far behind Microsoft in investing money in AI. According to CFO Ruth Porat, the company has spent $13 billion this time, $12 billion more than the previous quarter. From this, it can be seen that both companies are giving equal competition to each other in the AI market.
Amazon’s Upcoming Earnings
On August 1st Amazon will report its earnings. Investors’ eyes on Amazon and how it competes with its competitors Microsoft and Google in the cloud and AI services area.
Stock Performance of Competitors
Google shares have increased by 22% this year while Amazon’s share price is up by 23%. It shows the positive attitude of investors in the extension of these companies especially in the sector of AI and cloud services.
Summary
In Summary, the fourth quarter earnings will be announced by Microsoft, company’s AI policies and investments are likely checked by Wall Street. The cloud revenue growth of Microsoft is a plus point. The company’s share has also shown a good increase good sign from investors.
Compared to its peers Google and Amazon, Microsoft gaining more market share because of its early investment in AI3 Microsoft projects. Microsoft, Google, and Amazon have also increased their investment in AI. There is a tough competition between the three. Now let’s see to whom the investors are more attracted.
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Hello, My name is Gurvinder Singh, born in Punjab, India, completed my Bachelor of Commerce (B.Com) degree from Panjab University. Apart from my professional pursuits, I had a keen interest in finance-related hobbies. I actively manages my investment portfolio, carefully researching and analyzing various stocks and market trends to make informed financial decisions. With a goal of financial empowerment and wealth accumulation, I dedicated to continuous learning and improvement in my financial endeavors.
