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<\/a>\nThe three reports reflected underlying resilience, if not outright strength, in four of the industry\u2019s main pillars: digital advertising, cloud computing, information-technology spending and chips. Still, it wasn\u2019t all good news. The surging US dollar, which reduces the value of foreign sales, is eroding revenue – especially at Microsoft. And Texas Instruments saw weaker demand for chips in consumer products.<\/p>\n
Alphabet missed analysts\u2019 estimates for its YouTube and its cloud businesses. The company\u2019s earnings also came in light: Profit was $1.21 a share, compared with an estimate of $1.32.<\/p>\n
The companies also pointed to growth roadblocks looming in the coming months. Advertisers have begun to pull back on spending, exercising caution in an uncertain economic environment.<\/p>\n
Alphabet chief financial officer Ruth Porat used the term \u201cad pullback\u201d several times on a conference call with analysts. \u201cIt\u2019s clear Google has its work cut out for it in the back half of the year,\u201d said analyst Evelyn Mitchell of Insider Intelligence.<\/p>\n
Even so, investors were cheered by the overall tone of Google\u2019s remarks. The market for search advertising is more resilient than that of ads on social media, insulating Google\u2019s business relative to competitors like Snap and Facebook.<\/p>\n
At Microsoft, the company signed a record number of Azure cloud contracts worth more than $100 million and $1 billion, CFO Amy Hood said in an interview.<\/p>\n
Commercial bookings, a measure of future sales to corporate customers, were \u201csignificantly\u201d better than the company expected, rising by 25%, an indication corporate demand for Microsoft software remained strong in the quarter, Hood added.<\/p>\n
Texas Instruments, one of the world\u2019s biggest chipmakers, said demand for semiconductors used in industrial machinery and vehicles was strong. It also saw a rebound in China after that country began lifting Covid-related lockdowns in the country, which had shuttered factories.<\/p>\n
South Korean chipmaker SK Hynix Inc delivered strong results as well, helped by the flip side of a strong US dollar. The weaker Korean won – along with resilient demand – contributed to a 56% gain in profit last quarter. Still, the company was circumspect about the future, saying it would \u201ccarefully\u201d review its 2023 investment plan.<\/p>\n
Investors will get deeper insight into the underlying health of digital advertising, chips and IT spending Wednesday, when Meta and Qualcomm and ServiceNow Inc release their latest numbers.<\/p>\n
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