Fast Money Blog- 7/28/23

This week on Wall Street saw the release of quarterly earnings for several major companies in the Dow Jones Industrial Average and S&P 500. All of them were outstanding!

On Tuesday, July 25th, both Alphabet, Inc. (GOOGL) and Microsoft Corporation (MSFT) released their earnings. 

Google reported Q2 2023 earnings with top-line revenue of $74.6 billion, up 7% year-over-year. 

Here’s how the company’s revenue broke down:

Google’s search engine, its largest business, rose 5% to $42.6 billion in the second quarter.

Google’s cloud revenue grew 28% year-over-year, taking in $8.03 billion in the quarter. Google’s cloud unit also reported its second consecutive quarter of operating profit, with Q2 revenue of $395 million, compared to a $590 million loss in the year-ago quarter.

Advertising sales at YouTube climbed 4% to $7.7 billion for Q2.

These are amazing earnings. Google shares make a great long-term investment or short term trade. 

Microsoft released its quarterly earnings for Q4 2023 with top-line revenue of $56 billion, an increase of 8% year-over-year.  

Highlights

Microsoft’s Intelligent cloud segment had Q4 revenue of $23.9 billion, up 15% year-over-year. This segment includes server products and cloud services such as Azure, whose revenue grew 26% during the quarter.

The Productivity and Business Processes segment, which includes Dynamics, LinkedIn and the Office suite of products, brought in $18.2 billion, an increase of 10% year-over-year.

The company also reported quarterly profit of $18.3 billion.

On Wednesday, July 26th both Visa, Inc. (V) and Mastercard Incorporated (MA) released their earnings. Both companies benefited from the ongoing adoption of contactless payments.

Visa posted top line Q3 revenue of $8.1 billion, representing an increase of 12% year-over-year driven by growth in payments volume, cross-border volume and processed transactions. The company saw strong spending by consumers, especially on travel. 

Across the board Visa had outstanding numbers:

Payments volume increased 10% over the prior year.

Total cross-border volume increased 17% in the quarter year-over-year. 

In addition, service fee revenues rose 15% to $3.66 billion and data processing fees also rose 15% to $4.1 billion.

Mastercard posted exceptional Q2 2023 earnings with revenue of $6.3 billion, up 14% year-over-year.  

For Q2, the company saw GDV (gross dollar volume- a metric that represents the total dollar value of all transactions processed) of $2.3 trillion, up 12% year-over-year to and cross-border payments volume grew 24%. 

As of June 30th, 2023, Mastercard had issued 3.2 billion Mastercard and Mastercard branded cards, which includes gift and debit cards.

Microsoft, Mastercard, and Visa represent the greatest revenue growth in both the Dow and S&P. I expect these companies to continue to see their share prices grown, as well as their revenue and profits in 2023. 

Stay Open! Stay Positive!

Tyrone Jackson

The Wealthy Investor