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This Thursday announces as a tech heavyweight battle, since the giants Amazon, Alphabet, Snap and Twitter are all reporting their quarterly results.
Amazon and Alphabet, Google's parent company, exceeded consensus estimates in the last quarter. Amazon has truly revolutionized the game on Wall Street with earnings per share up more than 1,157% in July. But now that companies have strong track records far exceeding expectations, investors could lose confidence in their duo's – they do not realize these jumps the size of an elephant.
For Amazon, the consensus estimates polled by S & P Global Market Intelligence predicted that revenue would fall to the company's top estimate of $ 57.1 billion (£ 43.7 billion). A conservative pre-tax profit of $ 1.9 billion is forecast, although Amazon exceeds estimates of 68% in the last quarter to post profits of $ 2.6 billion.
Alphabet, by contrast, is expected to generate a business turnover of $ 34 billion, a growth rate of 23% over the same period in 2017. In addition, the $ 5 billion fine imposed by the EU under antitrust law should continue to weigh heavily on the profits of the company.
Read more: Amazon doubles profits but misses revenue estimates
An analysis of investment firm Hargreaves Lansdown said it expected a confrontation between the two companies in the cloud sector, Alphabet striving to make Amazon the world leader by increasing investment in the division. Alphabet said its largest workforce was registered in its cloud computing business in the last quarter, while Amazon's web services have always been its main profit driver.
The devices will also be an interesting battlefield, while Amazon's Amazon ambitions, Jeff Bezos, are clashing with Google's improved technology upgrades for home and smartphone systems.
Meanwhile, Snap and Twitter will experience a more difficult course, after disappointing investors in their last call for results in July. Although Twitter released its first quarterly earnings earlier this year and Snap's head, Evan Spiegel, has reinvigorated shareholders by promising them a profitable 2019 year, user figures on both social media apps have become a source of concern.
The US tech bubble as a whole has suffered earlier this month, when a slump in Wall Street caused primarily by rising interest rates hit technology stocks hardest. The group called FAANGs, which includes Facebook, Apple, Amazon, Netflix and Google, lost an incredible $ 172 billion worth of market value in one day.
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In addition, Microsoft CEO Satya Nadella is ready to prove whether his confidence in his cloud computing business has continued its near-meteoric rise for another quarter.
In their first-quarter results report released late Wednesday, investors will ensure that Microsoft, which currently ranks second in the global market behind Amazon, can surpass the impressive results of July for its cloud computing division. Its Azure cloud solution grew 90 percent quarter-over-quarter from the previous quarter, bringing the results of its professional cloud segment to $ 53.9 billion, up 53 percent.
According to consensus estimates gathered by S & P Global Market Intelligence, Microsoft's overall revenue is expected to be just below the company's maximum forecast range of $ 28.1 billion, or 27.9 billion. billions of dollars.
CMC Markets Chief Analyst Michael Hewson said the results of this week would serve as a yardstick for determining whether Microsoft would achieve the lofty goal of 12 percent revenue growth for the full year that investors are hoping.
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