Holy Smokes! What THESE Earnings Say about RECESSION | Google Stock, Microsoft, Snapchat

hey everyone let's go through a quick

earning snapshot recovery on hopefully

Snapchat tomorrow boy we'll talk about

that in a moment but let's start with

Google so here's some of the big things

I'm looking at when it comes to Google

first I was surprised at the lack of

artificial intelligence spend that we're

getting for equipment at Google

obviously it's too soon to expect any

kind of massive movement from Google

services we would obviously expect that

at some point in the future Google AI

Services might see some form of a boost

here's Google and after hours we expect

that in the longer term right over the

next decade uh certainly a year from now

to the next nine years thereafter we

would expect a lot of grade AI Revenue

to come we've got the AI hype but we

don't have the AI Revenue yet and that's

okay a real investor here wouldn't

really be expecting AI Revenue at this

point well we're really looking for

though is that investment into the

future and I was a little bit surprised

when I was looking at the Google numbers

that we didn't spend that much more more

on R D only about 700 million dollars

more and we didn't spend that much more

on investing in plant property and

equipment in fact we're actually below

the pace of where we were last year for

plant property and Equipment spend I was

slightly surprised by that uh and so

some of the other takeaways that I had

from Google that's probably the biggest

negative that I had with Google the rest

of the report I have to say made me

optimistic about Google again and I

actually haven't had exposure to Google

in quite a while so what made me

optimistic was that quarter on quarter

growth on cloud up 20 uh sorry you're up

28 year over year on cloud and 7.7

percent quarter on quarter fantastic

search actually growing again you're up

five percent on search YouTube ads up

9.5 quarter over quarter that's double

the year over year Trend these are not

recessionary numbers these are signs

that cloud spending search spending and

YouTube advertising all all up where it

seemed like you took a hit was on third

party spending third party Services

those declined for advertising but

otherwise search YouTube ads uh and and

margin on Google Cloud excellent growth

you also had fewer expenses for General

and administration as the company's

becoming more efficient this led them to

expand their overall gross margins to

about

57.2 percent from 56.2 percent so great

job here Google less GNA less spending

on equipment which makes me a little

worried about going into hey should we

be spending more but they are pulling

off more margin and they're growing in

segments they weren't growing in any

previously so this is fantastic now on

Microsoft something's also impressive

here though maybe a little bit less

impressive to the market given that

Google's up about six percent and afters

right now and of course earnings calls

could change these you've got Microsoft

down about a percent here but well

something regarding Microsoft that was

very in interesting in comparison to

Google was what was happening with their

spend let's talk about that quick

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so with Microsoft Microsoft actually

grew their plant property and Equipment

spend 30 percent year over year with

actually much of that in the last

quarter 23.7 percent growth from q1 this

to me is a little bit more of an

aggressive push into AI than what I

think Google is chasing so I'd like to

watch these two companies but if I right

now had to make a guess as to company

was throwing more money into AI I would

guess it's Microsoft the earnings calls

could change that but this is uh some of

the initial impression that I have here

also impressed by Microsoft paying down

another billion debt 5.7 billion in

Cherry purchases 5 billion dollars in

dividends this is a cash cow they have a

70 gross margin this is a cash cow

really phenomenal now uh no guidance yet

though so things could change for

Microsoft uh Visa indicated travel

demand is still strong they beat on

estimates we're just getting beats and

beats on top of Beats by these companies

this is a sign that we're not trending

into a recession if anything we're

actually trending much more towards a

recovery than a recession these numbers

phenomenal very excited by then with the

exception of course of Snapchat

Snapchat's daily active users grew

they're actually up 14 year over year

but it seems like they're heavily

focused on investing in their direct

response business and really retooling

their ad business in English

they are behind on the advertising game

they're trying new things to pay

creators more money hoping creators will

bring people to Snapchat which creators

are doing more and it's obviously

working in the Dau numbers but are those

valuable customers that Brands want to

advertise to it has Snapchat figured out

how to actually appropriately help

advertisers get conversions especially

after that Apple transparency tracking

update that really bogged everyone in

the advertising space for quite a while

one of the best Alternatives by the way

to this has been trade desk specifically

because trade desk has a tool of

avoiding the need for Apple transparency

tracking and instead uses this software

called uid2 it's a version of cookies

traffic and a very very high level

overview of it is is basically trying to

see how do certain people behave that we

where we know what they are what person

like sex age location whatever what

details we know how do they behave and

then how do people behave where we don't

necessarily have their details and we're

going to find some kind of alignment

with those without actually tracking the

people who don't Lobby opt-in trade desk

believes that with a uid2 which is now

open source they actually only need

about 10 of people to be logged in or

provide permission to track to be able

to form highly effective converting ads

this is something that obviously where

trade desk has figured it out clearly

and you can see this on just the stock

performance as you zoom out Snapchat has

has not yet this is the week chart here

on Snapchat this is the week chart here

on trade desk obviously volatility in

every Market that we look at for little

Giggles here you've got Tesla looking a

lot like trade desk up about 30 bips in

the after hours Google now it's seven

percent very excited to see what happens

as we go forward with more information

on these companies but look have to say

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afternoon or tomorrow we've got an

expiration tomorrow afternoon so we'll

be pretty busy and email I am running to

uh actually where are we going right now

we got to fly somewhere I don't even

know where we're going right now but I

gotta run so anyway thank you so much

for being here really appreciate you all

and we'll see you again hopefully soon

once I figure out this studio setup

which by no means I'm even close to

figuring out yet so bear with me

with the technical stuff that thanks so

much we'll be back in the other Studio

first thing tomorrow morning thanks

folks goodbye