Alphabet saw its shares reach a new peak on Thursday, while Microsoft and Meta have also been climbing since reaching all-time highs earlier this month. Closing at $151.87, Alphabet’s stock rose by 2.1%. Meanwhile, Microsoft closed at $404.87, with a market cap exceeding $3 trillion, and Meta gained 0.6% to close at $393.18. Apple remains slightly below its high from December. These increases come ahead of the mega-cap tech companies’ quarterly earnings reports next week. Investors are optimistic about the potential for strong results, given the anticipated boom in artificial intelligence, cost-cutting measures, broader economic growth, easing inflation, and the possibility of lower interest rates. Analysts at Mizuho Securities have maintained a buy rating on Alphabet, citing the company’s strong presence in the search and advertising market, as well as its sustained history of innovation and AI investments. Alphabet is expected to report a 12% revenue growth for the quarter, which would be the fastest rate of growth since mid-2022. Its shares jumped 58% last year and have already increased by 8.7% this year. Meta performed well last year and is up 11% in January. Similarly, Microsoft experienced gains last year and has increased by almost 8% so far this year. Piper Sandler analysts have stated that Microsoft’s cloud computing market leading position is a key factor and recommended buying the stock. Microsoft has surpassed Apple as the world’s most valuable publicly traded company. [1]
Reference:
[1] Source: “Microsoft cuts 1,900 jobs in gaming”
