Friday, April 22, 2016

Google and Microsoft disappoint – financial and economic

The two US technology companies Google and Microsoft have provided disappointing quarterly numbers. The shares react with course fees.

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(Reuters) The strong dollar slows Google’s growth. During the quarter, the parent company missed Alphabet ( GOOGL 780 0.66% ) in spite of strong growth in sales and earnings expectations of Wall Street. Therefore, the alphabet shares lost on Thursday in after hours trading more than 4%.

The booming advertising business to mobile devices fills the Group vigorously the coffers. He boosted its quarterly revenue by 17.4% to $ 20.26 billion and net income by nearly 20% to $ 4.21 billion. Both the revenue and earnings per share, industry experts had but more predicted. Alphabet CFO Ruth Porat pointed to exposure to the dollar strength, which presses on the international revenues. Analyst Martin Pyykkonen from Wertpapierhandelshaus Rosenblatt Securities said the negative currency effects were surprisingly strong.

In addition to that the average price for advertisements fell by 9%. This meant that the advert number indeed increased by 29%, but Google’s advertising revenue increased by only 16% to $ more than 18 billion.

The results summarized in a separate area shops outside the Internet activities slipped to a loss of 802 (previous year: -633) million $ deeper into the red. Sales for this division, in addition to broadband shops and the thermostat provider Nest also includes the development of self-propelled cars, doubled to 166 million $ .

Even Microsoft disappointed

The weak global PC shipments makes meanwhile to create Microsoft. Net income broke during the quarter by a quarter to $ 3.76 billion a as the world’s largest software company announced after US market close on Thursday. Sales decreased by 5.5% to $ 20.53 billion. Microsoft missed analysts’ expectations for earnings and sales. On Wall Street, the interim report has been included with disappointment. The Microsoft shares lost an after trading around 4%.

The slump in the PC market weighs on the business with the operating system Windows. The Windows revenue was down 2%. The dollar strength, which makes the Microsoft products abroad more expensive, had a negative impact. Lichtblick, however, was the promising cloud business. Sales in the division rose by 3.3% to $ 6.1 billion. The global PC sales went to the market observer IDC in the first quarter 2016 by 11.5% return.

CEO Satya Nadella will become less dependent on its traditional software products. He relies on mobile applications and especially the so-called data cloud as new hopefuls. In cloud business customers can use on the Internet Software and storage, which are provided by external computers available to them.

At start of the week, Microsoft had announced, more than ten years after the introduction of the production of its game console millionfold sold Xbox 360 set. The remaining stocks are to be sold off.

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