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Bloomberg Intelligence

Instant Reaction: Microsoft, Meta Earnings Results

Oct 30, 2024
Mandeep Singh and Anurag Rana, senior technology analysts at Bloomberg Intelligence, delve into the latest earnings of Microsoft and Meta. They highlight Microsoft's robust growth driven by AI investments in cloud computing and Office software. Meta's projection for the holiday quarter is strong, fueled by advancements in AI advertising, yet it faces challenges with financial losses in its Reality Labs division. The duo discusses the competitive landscape in AI and digital advertising, painting a vivid picture of tech’s evolving dynamics.
16:23

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Quick takeaways

  • Microsoft's investments in artificial intelligence are yielding results, significantly boosting revenue in its cloud and Office software divisions.
  • Meta's ad pricing is increasing, indicating a strong return on investment for advertisers, despite ongoing losses in its Reality Labs segment.

Deep dives

Meta Platforms' Earnings Insights

Meta Platforms reported fourth quarter revenue expectations that align closely with market estimates, indicating a potential revenue range of $45 billion to $48 billion. Mark Zuckerberg described the quarter as 'pretty good,' although shares dipped slightly in after-hours trading. A key point of interest was the company's ad pricing, which increased by 11%, surpassing other platforms like Snap, which experienced a decline in ad pricing. This suggests that advertisers find a higher return on investment with Meta, bolstering its position in the digital ad market despite challenges in its hardware segment.

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