Powell has just wrapped up his latest remarks as Federal Reserve Chair, offering important insights. Investors are now shifting their attention to the newly released earnings reports from trillion-dollar tech giants. These reports were scheduled for publication right after the market closed, and last week’s earnings powered stocks to fresh highs.
Powell’s message and earnings take center stage
Acknowledging that short-term inflation expectations have risen due to tensions with Iran, Powell reaffirmed the commitment to the long-term 2% inflation target. He stated that the recent spike in oil prices is clearly pushing inflation higher in the short run, and uncertainty over the conflict adds further risk. That makes it likely that interest rates will remain unchanged for some time. Crucially, Powell avoided making statements that could hint at a possible rate hike.
Spotlight on tech giants’ earnings
Turning to the day’s other big story, earnings reports have now been released for Google, META, Amazon, QCOM, and Microsoft. Here are the key figures and forecasts from these heavyweights.
Qualcomm
Qualcomm exceeded expectations, reporting adjusted earnings per share (EPS) of $2.65, compared to the forecast of $2.55. Adjusted revenue came in at $10.60 billion, also topping the estimate of $10.56 billion. Semi-capital expenditures totaled $1.08 billion. For the upcoming quarter, Qualcomm projects adjusted EPS between $2.10 and $2.30, below the expected $2.43, with anticipated revenue ranging from $9.2 billion to $10 billion—lower than the $10.26 billion consensus estimate.
Amazon
Amazon impressed with earnings per share of $2.78, far exceeding the $1.62 projection. Net sales reached $181.52 billion, also outpacing the $177.23 billion expectation. Operating income was $23.85 billion, above the projected $20.75 billion, and the operating margin stood at 13.1% instead of the forecasted 11.7%. Amazon Web Services (AWS) net sales grew 28% (excluding currency effects), coming in at $37.59 billion. Amazon highlighted that sales growth reflects continued investment in artificial intelligence. The company forecasts next quarter’s net sales at $194-$199 billion and operating income between $20 and $24 billion, both topping consensus estimates.
Google’s parent company Alphabet reported revenue of $109.90 billion, beating the $107.1 billion forecast. Revenue ex-TAC was $94.67 billion, above predictions. Operating income reached $39.70 billion, with Google Services and Search both outperforming expectations. Advertising revenue stood at $77.25 billion. Although YouTube ad revenue slightly missed, at $9.88 billion compared to $9.97 billion projected, Google Cloud revenue soared to $20.03 billion, topping estimates. Alphabet described it as the strongest quarter yet for its consumer AI plans.
Microsoft
Microsoft delivered earnings per share of $4.27, outpacing the $4.03 forecast. Revenue was $82.89 billion against an $81.46 billion estimate, while operating income reached $38.40 billion. Cloud revenue totaled $54.5 billion, with Azure and other cloud services growing 39% (excluding currency effects), outpacing the expected 38.2% rise. Microsoft 365 commercial cloud revenue increased 19%, and consumer cloud revenue was up 33%.
META
META posted earnings per share of $10.44 and revenue of $56.31 billion, beating the $55.51 billion forecast. Ad revenue reached $55.02 billion. Family of Apps brought in $55.91 billion in revenue, outperforming estimates, with segment operating income at $26.90 billion. Operating income was up 30% year over year. Reality Labs revenue was $402 million, slightly below forecasts, with operating losses of $4.03 billion, less than expected. META projects next quarter’s revenue between $58 and $61 billion and has increased its annual capital expenditure outlook to $125–145 billion.
For now, the Federal Reserve’s hawkish stance is overshadowing the impact of these earnings on Bitcoin, but a short-term rally could emerge in the coming hours.
Ebay
Ebay beat forecasts with adjusted earnings per share from continuing operations at $1.66 versus $1.58 projected. Revenue reached $3.09 billion, above the $3.03 billion estimate. Gross merchandise volume was reported at $22.2 billion, topping projections. Active buyers totaled 136 million, slightly better than expected. For the next quarter, Ebay expects adjusted EPS between $1.46 and $1.51 and net revenue in the range of $2.97 to $3.03 billion, largely in line with consensus.
Alphabet stated that this was the strongest quarter so far for its consumer AI ambitions.
Looking ahead, investors will be watching how the market reacts in the short term, especially in light of persistent inflationary pressures. While the tech giants’ performances were robust, the broader macroeconomic uncertainty could influence overall sentiment, particularly in cryptocurrency markets.
As the dust settles from both Powell’s remarks and these high-profile earnings, attention now shifts towards how these forces will shape the short-term movement of stocks and digital assets such as BTC. The next hours and days will be crucial for market direction.
