Microsoft and Meta Platforms: Uncertainty Ahead of Earnings

The tech giants are set to report their financial results for the fourth quarter of 2022, and analysts are expecting a mixed bag.

Microsoft is expected to report strong results, driven by its cloud computing business. Meta Platforms, on the other hand, is expected to report a decline in revenue and earnings, due to the impact of the TikTok and Reels.

Microsoft is scheduled to report its earnings on January 24, 2023, after the market closes. Analysts are expecting the company to report revenue of $52.94 billion, up 6.4% year-over-year, and earnings per share of $2.32, up 7.6% year-over-year.

The company's cloud computing business, Azure, is expected to be a major driver of growth. Azure is one of the leading cloud computing platforms in the world, and it has been growing rapidly in recent years.

Meta Platforms is scheduled to report its earnings on January 25, 2023, after the market closes. Analysts are expecting the company to report revenue of $31.53 billion, down 1.5% year-over-year, and earnings per share of $2.26, down 11.6% year-over-year.

The company's advertising business is expected to be a major drag on its financial results. Meta Platforms is facing increasing competition from TikTok and Reels, and this is expected to lead to a decline in ad revenue.

In addition to the impact of TikTok and Reels, Meta Platforms is also facing headwinds from the global economic downturn. This is expected to lead to a decline in advertising spending, which will further hurt Meta Platforms' financial results.

Overall, the outlook for Microsoft and Meta Platforms is mixed. Microsoft is expected to report strong results, driven by its cloud computing business. Meta Platforms, on the other hand, is expected to report a decline in revenue and earnings, due to the impact of TikTok and Reels.