- AMZN beat on the top line with 23%+ sales growth, with in line EPS muted by increased technology and content expenses. Investors were spooked by guidance for a 2Q loss.
- As usual, AMZN divulged little detail, but Bezos has been busy recently, increasing the price for Prime, launching Fire TV, signing a big content deal with HBO, and announcing Prime Pantry.
- MSFT delivered modest beats on both top and bottom lines – without a one-time sales recognition issue last year, growth would have been a healthy 8%+.
- Cloud revenues (Azure, Office 365, Dynamics) more than doubled, commercial Windows grew double digits on the XP sunset, and Consumer and Devices rose a healthy 12%.
After Silicon Valley stalwarts Apple and Facebook delivered big blow outs last night, the Pacific Northwest division of the tech league took its turn today, with both Amazon and Microsoft delivering better than expected results. Amazon’s strong revenues were delivered with typically spare detail and a bitter bit of guidance on June quarter margins that spooked investors who had initially bid the stock up after hours. Seattle neighbor Microsoft was also a bit shy on detailed operational data, frustrating analysts already coping with the comprehensive reorganization of the previous reporting segments. However, despite their shared secretive approach to reporting, both companies are doing the right things to stay at the forefront of the ongoing TMT paradigm shift, with strong results to show for it.