- Consumer technology and advertising underperforming software
- Apple, Amazon and Meta earnings to come in second half of the week
Microsoft (US:MSFT) and Alphabet’s (US:GOOGL) recent trading updates could be evidence that tech market sentiment is bottoming out. Both companies missed broker forecasts as economic headwinds gathered but both saw their share prices jump, suggesting a lot of the worst has already been priced in.
At Microsoft, adjusted earnings per share was $2.23 per share, below the $2.29 (£1.85) expected by analysts. However, its share price was up 5 per cent the following day in light of positive guidance for the rest of 2022. The same pattern played out at Google which posted earnings per share of $1.21 – missing analyst expectations of $1.28. Google’s share price increased 5 per cent in after hours.