Wall Street seems to have the sense that AI is helping Microsoft’s cloud business more than it is helping Google’s
Microsoft Corp. and Alphabet Inc. both reported mostly strong results Tuesday, but the disparate reactions from investors showed that Wall Street only cares about artificial intelligence right now.
Companies looking to beef up their AI offerings are often looking to add AI services for their customers through additional cloud services, so they don’t have to do as much internal development themselves. In addition, AI offerings ranging from chatbots to tools that can streamline the writing of reports require ever more computing power, and both Azure and Google Cloud are starting to offer new software applications to address those needs.
Microsoft Chief Financial Officer Amy Hood forecast that Azure revenue growth should be around 26% in constant currency in the fiscal second quarter, driven by new workload trends and with the growing contributions from AI. “On cloud, what I would say is overall, we have definitely started seeing customers looking to optimize spend,” Pichai said. “We leaned into it to help customers, given some other challenges they were facing, and so that was a factor.”
Insider Intelligence senior analyst Max Willens added that Google Cloud is facing tough competition, and while the business seems to have traction with AI startups that “may bear fruit in the long run, it is not currently helping Google Cloud enough to satisfy investors.”
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Chevron, Hess, Roivant, Textainer, Microsoft, Alphabet, and More Stock Market MoversChevron will buy Hess in all-stock deal valued at $53 billion, Roche agrees to buy a developer of a drug for people suffering from inflammatory bowel disease...
Weiterlesen »
Google-parent Alphabet's cloud division misses revenue estimates, as Microsoft’s cloud boomsGoogle-parent Alphabet's cloud division misses revenue estimates, as Microsoft’s cloud booms
Weiterlesen »
Stocks making the biggest moves after hours: Microsoft, Alphabet, Snap and moreThese are the stocks posting the largest moves in extended trading.
Weiterlesen »
S&P 500 futures tick lower after Microsoft and Alphabet report: Live updatesTech giants Microsoft and Alphabet posted quarterly results late Tuesday, kicking off Big Tech earnings.
Weiterlesen »
S&P 500 futures tick lower after Microsoft and Alphabet report: Live updatesTech giants Microsoft and Alphabet posted quarterly results late Tuesday, kicking off Big Tech earnings.
Weiterlesen »
Dow futures tick higher, Microsoft gains 3.5%, Alphabet sheds 6.5% after earningsDow futures tick higher, Microsoft gains 3.5%, Alphabet sheds 6.5% after earnings
Weiterlesen »