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Investors punish Microsoft, Alphabet as AI returns fall short of lofty expectations

Investors punish Microsoft, Alphabet as AI returns fall short of lofty expectations
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Generative AI still in the hype cycle in digital advertising: analysts

Despite the buzz over generative AI last year, the impact on advertising giants Alphabet and Meta Platforms is likely to be muted.

Microsoft beats quarterly revenue estimates

(Reuters) -Microsoft Corp beat Wall Street estimates for fiscal second-quarter revenue on Tuesday, as new artificial-intelligence features helped attract customers to its cloud and software services. Microsoft shares were down 2% after-hours. The company, in collaboration with ChatGPT creator OpenAI, has pushed chatbots into its core products such as its Office software and Bing search engine over the past year, attracting business customers eager to try the tech industry's next breakthrough.

Microsoft beats quarterly revenue estimates

Microsoft shares fell 1% in after-hours trading. Along with a rally in other tech stocks, including Alphabet and Nvidia, Microsoft helped fuel a 24% surge in the S&P 500 in 2023. Revenue at Microsoft's Intelligent Cloud unit, which houses the Azure cloud computing platform, grew 20% to $25.9 billion.

Microsoft beats Q2 revenue estimates on cloud strength

(Reuters) -Microsoft beat market estimates for quarterly profit and revenue on Tuesday, as new artificial-intelligence features helped attract customers to its Azure cloud service as they built out their own AI services. But Microsoft shares were down 1% after-hours as investors absorbed news about rising costs to develop these AI features. Microsoft, in collaboration with ChatGPT creator OpenAI, has pushed chatbots into its core products such as its Office software and Bing search engine over the past year, attracting business customers eager to try the tech industry's next breakthrough.

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