AI: Google Parent Alphabet and Microsoft Continue to Thrive - Alphabet, Microsoft Report Strong Q2 Revenues; Meta's Profits Hit by Tax Burden
Alphabet and Microsoft have reported strong quarterly revenues, while Meta's profits were significantly impacted by a one-time tax burden. Meanwhile, Microsoft faced a global outage on its Azure platform.
Alphabet's CEO Sundar Pichai revealed double-digit growth across all key business segments. The company surpassed $100 billion in quarterly revenue for the first time, driven by Google Cloud. Microsoft's revenue climbed 18% to $77.7 billion, fueled by cloud services and AI applications. CEO Satya Nadella attributed this strong performance to these areas. Meta, however, saw its profits wiped out by a one-time tax burden of $16 billion, leaving $2.1 billion in profit. This tax burden, related to the 'Big Beautiful Bill' tax law enacted by former U.S. President Donald Trump, led to a significant drop in Meta's stock, plunging more than 8% in after-hours trading. Despite Microsoft's positive revenue report, its stock fell by as much as 3.6% in after-hours trading. The company also experienced a global outage on its Azure cloud computing platform.
Alphabet and Microsoft's robust revenues, driven by cloud services and AI applications, highlight the growing importance of these technologies. Meta's significant profit reduction due to a one-time tax burden serves as a reminder of the impact of regulatory changes on businesses. Microsoft's stock dip and Azure outage, despite positive revenues, indicate potential challenges in maintaining investor confidence.
