Good Evening. Wall Street analyzed and anticipated corporate earnings from some of the market’s largest players on Tuesday, resulting in an increase in U.S. stock prices.
The S&P 500 gained 1.63% on its third consecutive day of gains of 1% or more. The Dow Jones inched forward by 1.07%. The Nasdaq Composite gained 2.25%, a session high.
CLOUD SERVICES SLOWS
Microsoft (MSFT) released profits for the most recent quarter after the closing bell, exceeding analyst forecasts on both the top and bottom lines despite a 20% year-over-year decline in cloud revenue growth.
Here are the most significant figures from the report compared to what experts had anticipated from the corporation.
- Revenue: $50.1 Billion vs. $49.6 Billion expected
- Earnings Per Share: $2.35 vs. $2.29 expected
- Intelligent Cloud: $20.3 Billion vs. $20.3 Billion expected
In recent years, Microsoft’s Intelligent Cloud division, which includes its Azure cloud computing platform, has been one of the company’s growth pillars.
However… sales have decreased from their pandemic-driven peaks. Microsoft reported Intelligent Cloud growth of 20% in Q1, significantly lower than the segment’s growth of 31% in Q1 2022. Notably, Azure growth decreased to 35% in Q1 compared to 50% in the previous year’s quarter.
ANOTHER COMPANY CUTS TIES

Adidas is one of the many companies cutting ties with Ye because of the string of antisemitic remarks he made in recent weeks, which echoed centuries-old Jewish conspiracy theories.
However, with Adidas severing ties with Ye, one Wall Street analyst explained this will hurt. This is because Adidas will have a massive financial vacuum to fill: Omar Safi, an analyst at Evercore ISI, estimates that the Yeezy brand generates between $1 billion and $2 billion in annual revenues for the corporation.
It doesn’t stop there… As the global economy has slowed, Adidas is the latest retailer to be caught flat-footed operationally as the holiday season approaches. The company warned a week ago that a glut of Adidas inventory will necessitate extreme markdowns at the price of revenues due to poor execution.