Microsoft and Alphabet reported weaker growth, share price down

Earnings season is here. Microsoft and Alphabet were the first two big tech to announce results; Apple, Amazon and Meta will be releasing theirs this week too.

The first indication of disappointment was in their share prices - after the results were released, both Microsoft and Alphabet share prices declined 7% during after-market hours.

Alphabet results came in below expectations. Revenue showed a tremendous slowdown, retarding to just 6% growth. Youtube was particularly weak, seeing a revenue decline of 2%.

In particular, Google noticed a pullback in spending from insurance, loans, mortgage and cryptocurrencies ads.

The ad market seems weak and may last a few quarters. So we expect those ad-dependent companies to continue to report weak results in the near future.

Here are a list of companies with high percentages of revenue derived from ads