Zacks previews Magnificent Seven earnings after Alphabet's cloud surge and capex hike

EarningsIndustry Impact 4
โดย Zacks Investment Research·Read original
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Zacks Investment Research previews earnings for Microsoft, Meta Platforms, Apple, and Amazon after Alphabet's second-quarter results raised expectations for its Magnificent Seven peers. Alphabet reported Google Cloud revenue up 82 percent year-over-year, accelerating from 45.2 percent growth in the prior quarter, but its free cash flow turned negative for the first time as a public company following another capital expenditure hike. The report notes that Alphabet's net income included an estimated $77.4 billion unrealized gain on its SpaceX stake, which inflated its $112.1 billion net income. Excluding that non-operating gain, second-quarter earnings growth for the Magnificent Seven group would be a more reasonable 28 percent rather than 83.1 percent. Through July 24, 135 S&P 500 members have reported, with total earnings up 67.8 percent on 12.6 percent revenue gains, though Micron and Alphabet account for more than 60 percent of that growth. For the full second quarter, total S&P 500 earnings are expected to rise 39.1 percent on 12.3 percent higher revenues, with the Tech sector alone contributing 41 percent of all index earnings.

Impact on stocks 7

Artificial Intelligence▲ · 6 stocks
Alphabet Inc Class C
GOOG
▲ PositiveDemandCapitalrelevance

Google Cloud revenue surged 82% YoY, indicating strong end-customer demand for its cloud services.

Semiconductors▲ · 1 stocks

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