Microsoft and Google generated additional profits that exceeded analysts' estimates. This remarkable increase in revenues, according to specialists, is due to the entry of the two technology giants into the field of artificial intelligence.
The profits of the two giant technology companies, "Microsoft" and "Alphabet" (the parent company of Google), exceeded analysts' estimates, by achieving some increases in revenue, after the two companies recently entered the field of artificial intelligence.
According to the American " CNBC " network, Microsoft exceeded expectations in the final result of quarterly revenue.
Shares of Microsoft rose 9% in trading on Tuesday, after the software company released third-quarter financial results and quarterly guidance that beat analysts' expectations.
The company's earnings were in the form of $2.45 per share, compared to $2.23 per share as expected by analysts. And revenues, 52.86 billion dollars, compared to 51.02 billion dollars, according to what analysts expected.
For the fourth fiscal quarter, revenue grew 6.7%. Net income rose 9% to $18.3 billion, or $2.45 per share, from $16.73 billion, or $2.22 per share, a year earlier.
According to the data, the company's "Teams" app had more than 300 million monthly active users, up from 280 million in the previous quarter.
For its part, Alphabet, the parent company of Google, announced revenues and profits for the first quarter, which exceeded estimates, according to another report by CNBC .
The company said its board had authorized a $70 billion share buyback.
Alphabet shared first-quarter results on Tuesday, which beat analyst estimates. The stock jumped more than 4% in extended trading before paring gains.
Earnings were $1.17 per share versus $1.07 per share, revenue was $69.79 billion versus $68.9 billion expected, and YouTube advertising revenue was $6.69 billion versus $6.6 billion.
Alphabet's revenue rose 3% to $69.79 billion from $68 billion a year earlier, according to the earnings report.
Advertising revenue beat analysts' expectations, but fell from a year earlier to $54.55 billion.
YouTube ad revenue remained in line with analysts' expectations, also decreasing from a year ago.
To deal with the recent advertising weakness, Google was forced to make the biggest cuts in the company's history, including laying off 12,000 employees, or about 6% of its workforce, in January.
Google is feeling pressure from the popularity of the AI-based Chat GPT, which Microsoft launched late last year, and the company quickly launched its own chatbot called Cool this quarter.
It is noteworthy that Google has temporarily suspended the process of building a huge site in San Jose in Silicon Valley, as part of its plan to reduce costs, according to what was reported by the French Press Agency earlier this month.
And the "Alphabet" group, which owns Google, announced early this year that it would cut about 12,000 jobs worldwide, justifying this with a challenging economic reality.
And "Alphabet" recorded revenues and profits less than expected in the last three months of last year, while the difficult economic conditions lead to a decline in its advertising business.
Alphabet's budget cuts followed a massive hiring wave during the height of the COVID-19 pandemic from internet companies scrambling to meet rising demand for their services during lockdowns.
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