Amid Wall Street AI Bubble Concerns... MS to Announce Quarterly Earnings on 30th

Wall Street in the United States is expected to look for signs that the results of investments in artificial intelligence (AI) are becoming increasingly visible through Microsoft's (MS) quarterly earnings announcement on the 30th (local time).

[Image source=Reuters Yonhap News]

According to data compiled by Bloomberg News, MS is expected to release its fiscal fourth-quarter earnings after the close of regular trading on the New York Stock Exchange this afternoon, with revenue of $64.5 billion and earnings per share of $2.94. This represents growth compared to revenue of $56.2 billion and earnings per share of $2.69 a year ago. Revenue from Intelligent Cloud, including Azure, is estimated at $28.7 billion, with total cloud revenue expected to reach $36.8 billion.

Dan Ives, an analyst at Wedbush, said in an investor memo, "MS was strong again this quarter," adding, "We believe the AI wave is accelerating Azure's cloud deal flow and will maintain strong momentum through 2024-2025." Karl Keirstead, an analyst at UBS Global Research, also reported that MS is increasingly taking market share from Google Alphabet and Amazon.

MS's earnings announcement is particularly notable as it follows competitor Google Alphabet, which revealed surprise earnings last week but saw its stock price plunge. Recently on Wall Street, there have been repeated bubble theories suggesting that, compared to the fiber optic installation boom during the dot-com bubble, these big tech companies are investing huge costs in AI without guaranteed profitability. This is the reason behind Alphabet's stock price decline despite better-than-expected earnings. Investors expressed concerns that, while the timing of profit realization is uncertain, Google is still pouring massive funds into AI technology development.

Accordingly, Yahoo Finance pointed out that investors will want to know not only the current profits in MS's earnings announcement but also how much more MS plans to invest in AI going forward. Previously, MS reported capital expenditures of $14 billion in the prior quarter. Additionally, mentions regarding cloud system stability amid the recent global IT crisis triggered by MS are also expected.

MS's earnings, which are regarded as being a step ahead in the big tech AI competition, are expected to influence overall investor sentiment in the New York Stock Exchange. Last week, the sharp declines in Tesla and Alphabet's stock prices, which marked the start of the big tech earnings season, led to a broader market downturn. The day after Alphabet's earnings announcement, the Nasdaq index plunged nearly 4%, marking its largest drop since October 2020. Amazon is scheduled to announce its earnings on August 1, following MS.

This content was produced with the assistance of AI translation services.