Big Tech Makes a Resounding Comeback: Microsoft and Google Report Impressive Quarterly Sales Growth

New York CNN — Big tech companies like Alphabet, Microsoft, and Snap are experiencing strong sales growth in the third quarter of the year. Alphabet, the parent company of Google, reported quarterly sales of $76.69 billion, an 11% increase from the previous year. Microsoft’s sales grew by 13% to $56.5 billion, while Snap’s revenue increased by 5% to nearly $1.2 billion. Despite beating sales expectations, shares of Alphabet and Snap dipped around 5% in after-hours trading, while Microsoft shares gained around 4%. Analysts suggest that these strong results defy concerns of a near-term economic weakness in the tech sector. Google’s advertising business generated revenue of $59.6 billion, while YouTube ads brought in approximately $7.9 billion. Google’s cloud business, however, fell short of analysts’ estimates with revenue of $8.41 billion. Despite a downturn in the tech sector in 2022, Alphabet’s shares have climbed approximately 56% since the beginning of 2023. Both Alphabet and Google are currently under scrutiny for antitrust allegations, and Google recently announced plans for layoffs in its recruiting division. Microsoft’s sales growth was driven by its investments in AI technology, particularly in its cloud division. The company’s “intelligent cloud” business saw a 19% increase in sales, and its “productivity and business processes” business grew by 13%. However, a downturn in device revenue suggests that economic concerns among consumers may still impact the company. Snap’s sales growth was attributed to efforts to revamp its advertising technology, following changes to Apple’s app tracking policies. The company reported an increase in daily active users and a rise in time spent watching its TikTok clone, Spotlight. Snap also announced that its chief operating officer plans to retire. The company faced a temporary pause in spending from advertisers during the Israel-Hamas war. Snap did not provide formal guidance for the fourth quarter but projected year-over-year quarterly revenue growth between 2% and 6%.