Amazon, Alphabet, Microsoft and Intel beat earning expectations
Amazon, Alphabet, Microsoft and Intel posted quarterly earnings last Thursday, which reflected a shift away from company-owned data centers and toward the cloud. All of the companies surpassed expected earnings, resulting in a surge in share prices the following Friday.
Amazon Web Services (AWS) delivered the most revenue among its competitors. For the quarter, total revenue for AWS was about $4.6 billion, a year-over-year increase of 42% with an operating income of $1.17 billion. The company sealed deals with Hulu, Toyota Racing Development and General Electric. The stock increased by more than 7% after hours.
Google partner company Alphabet’s profit increased $1.12 billion and revenue $9.5 billion from the year before. The company reported a third-quarter net income of $6.73 billion on revenue of $27.9 billion. The earnings reported far exceeding expectations. Analysts on average anticipated Alphabet to report earnings of $8.31 a share on revenue of $26.9 billion, according to MarketWatch.
Microsoft’s Azure company almost doubled with a year-over-year growth of 90%. The company has surpassed AWS growth for the last eight quarters. Although, according to Synergy Research Group, AWS controls 34% of the market while Azure controls 12%. Microsoft reported its first-fiscal quarter earnings increased $6.58 billion from $5.67 billion. Total revenue ballooned from $2.2 billion to $24.5 billion
Intel, which sells processors and chips to cloud vendors, reported a third-quarter net income of $4.52 billion. Revenue increased to $16.15 billion from $15.78 billion in the year-ago period. In July, Intel deployed its new Xeon Scalable Processors, which delivered a 7% year-to-year growth for the business’s data center group.
Canalys estimates the cloud computing market at $14.4 billion for the third-quarter of 2017, an increase of 43% from the year before. Amazon has 31.8% of the market. Microsoft follows with 13.9% and Google with 6%, according to Canalys’ estimates. Given the stock increase among the companies, together, they could be with more than the total market cap of almost $2 trillion seen at the end of Thursday’s earnings.
