Google, IBM, MS Offer Mixed Snapshot
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Google, IBM and Microsoft reported quarterly results on Thursday, giving investors a mixed snapshot of the health of the technology sector amid a slowing global economy.
Google posted a 35 percent rise in quarterly net profit but missed Wall Street's consensus forecast. IBM reported a higher quarterly profit that beat expectations. Microsoft also posted a rise in quarterly profit, but issued a forecast below Wall Street expectations.
Commentary on Google:
JEFFREY LINDSAY, ANALYST, SANFORD C. BERNSTEIN
"In this market, unless you blow results in this market, investors are going to be very skeptical. It looks as if they've beaten consensus on revenue. But the issue is the margins, they're a little disappointing. That's why earnings are low."
"Interest income looks low. That would come down for several reasons, including its DoubleClick acquisition."
"It looks like there has been some expense discipline. It could be that there's some weakness in the social networks deal but it hasn't been fully offset by the expense discipline."
"The economy's been hard on Google's network rather than Google's owned and operated business. That's why we're seeing lower gross margins. Overall, it could be that investors will be disappointed with earnings per share and in this market there will be a strong reaction."
COLIN GILLIS, ANALYST, CANACCORD ADAMS
"It's hard to love the numbers. There's the initial shock of this being the best company in the space and it just fell short. But when we wake up tomorrow, they're still taking market share and still the best company in the space. They're still innovating."
"People will be worried about the U.S advertising market continuing to roll over or decline. You saw it with ValueClick missing."
"The rebound party is over."