Stocks closed slightly higher after the Fed held rates steady, then the real story landed after the bell. Microsoft beat and jumped. Alphabet missed and fell. Same cloud race, opposite reactions.
Here are 4 worth researching. 👇
📌 The Watchlist
1. Microsoft | $MSFT: Makes Windows, Office and the Azure cloud platform. It reported revenue of $92.28 billion, up 19% from a year earlier, with non-GAAP earnings of $4.89 per share above the roughly $4.71 expected, and Azure revenue of $33.17 billion, up 48%. Shares rose about 5% after hours.
2. Alphabet | $GOOGL: Owns Google Search, YouTube and Google Cloud. It reported revenue of $127.6 billion, up 25% from a year earlier but just below the roughly $127.9 billion expected, with earnings of $2.12 per share below the roughly $3.00 expected after an $8.7 billion net loss on equity securities. Google Cloud revenue jumped 103% to $30.7 billion, ahead of the roughly $29.1 billion expected, while capital spending reached $51.4 billion. Shares fell about 8% after hours.
3. T-Mobile | $TMUS: Runs a US wireless network and sells phone and broadband plans. It reported revenue of $23.58 billion and earnings of $3.22 per share, above the $2.91 expected, with net income of $3.46 billion and postpaid service revenue of $16.27 billion, up 9.3%. It added 274,000 postpaid net accounts in the quarter.
4. Chipotle | $CMG: Runs fast casual Mexican restaurants across the US. It reported earnings of $0.27 per share, missing the $0.29 expected, on revenue of $3.29 billion, in line with expectations and up 9.7% from a year earlier.
📌 The Part Worth Saving
A split earnings night is a reason to research a stock. It is not a reason to buy blindly.
Look for:
• Whether cloud growth kept pace with AI spending
• Whether a miss came from the core business or a one time item
• Whether guidance moved with the result, not just the quarter
• Whether the stock move matched the result or just the expectations around it
The best question: with Amazon reporting after the bell tomorrow and GDP and PCE due before the open, which of tonight's numbers tells you more about AI spending, the cloud growth or the capital spending?
Education only, not financial advice.
