YouTube is Google’s Secret Weapon
Plus, AMD doesn’t have a problem and Microsoft earnings show that cloud computing is the way to go
Hello there,
Alphabet’s (GOOGL) earnings beat expectations as revenue grew 34% and Youtube ads revenue grew nearly 50%.
Why this matters: YouTube is showing itself as a worthy competitor with other social media sites with ad revenue coming in at $6.01 billion, a 49% rise from a year ago. According to a recent Pew report, the video platform saw usage grow from 73% of U.S. adults in 2019 to 81% in 2021. Advertising revenue came in at $44.68 billion - a significant rise from $33.76 billion in the same quarter last year. (CNBC)
AMD says the chip shortage is not a problem
Advanced Micro Devices (AMD) raised its annual revenue forecast after revenue in the first quarter came in at $3.45 billion, a 93% increase from last year.
Why this matters: Even as the world deals with a chip shortage like no other, AMD says it’s not a problem for them. CEO, Lisa Su, said she was confident the company could source the chips despite a global supply shortage, stating that they are working very closely with their supply chain partners. The company has benefited from gamers who have spent more time playing and upgrading their equipment during the COVID-19 pandemic - sales in their computing and graphics business (which includes graphics and central processor chips for personal computers) rose 46% to $2.10 billion. The company’s shares rose about 4% in extended trading. (Yahoo Finance)
Microsoft earnings show that cloud computing is the way to go
Microsoft's (MSFT) earnings beat expectations with revenue coming in at $41.7 billion versus $41.05 billion expected.
Why this matters: According to their earnings, the company's biggest growth driver is its Azure cloud division - bringing in $15.12 billion in revenue, a 23% year-over-year increase. Microsoft also saw year-over-year growth of 19% in its More Personal Computing segment, a 10% year-over-year increase in Windows commercial products and cloud services revenue, and a 35% jump in Xbox and gaming revenue. The company's stock was down more than 3% following the release of their earnings. (Yahoo Finance)
What else are we reading?
AMC (AMC) has dropped their plan to issue 500 million new shares, saying a separate plan for a smaller sale would be sufficient to meet the movie-theater chain’s cash needs. (Yahoo Finance)
Pinterest (PINS) reported 78% year-over-year revenue growth for the first quarter, but its user growth fell short of analysts’ expectations. (MarketWatch)
Visa (V) shares were up more than 1% in after-hours trading after the company reported their second-quarter net income of $3.0 billion. (MarketWatch)
That’s it from us today.
See you tomorrow.