Microsoft, Alphabet shares rise on positive outlook

28 Jul 2022 , 08:19 AM

Heavyweight technology and growth firms, which have driven the US stock market for the past ten years, rallied on Wednesday in response to a positive outlook from Microsoft Corp. and sustained Google ad sales from Alphabet.

The largest online ad vendor, Google, appeared better prepared to weather a recession than its smaller competitors, sending Alphabet shares up 3.5% in premarket trading.

Even though it failed expectations for fourth-quarter results, Microsoft’s stock increased by 3.8% as the business stated it anticipates double-digit growth in fiscal revenue, allaying concerns about the impact of rising pricing and slowing growth.

Following last week’s selloff in social media and ad tech companies due to dismal results from Twitter Inc. and Snapchat’s owner Snap Inc., all eyes will now be on Meta Platforms, the company that owns Facebook, which is scheduled to release its ad revenue later in the day.

While Apple Inc. and Amazon.com Inc., which are expected to release earnings reports on Thursday, firmed 2.5% and 2%, respectively, Meta shares increased by 2.4%.

That would wrap up the results from the four biggest U.S. corporations–Apple, Microsoft, Alphabet, and Amazon–which make up almost a quarter of the industry standard’s weight in the S&P 500 index.

Indian IT Companies like Wipro, Infosys, and TCS could be bullish today due to this rally in US tech stocks.