Microsoft and Alphabet, the owner of Google, released on Tuesday night (26) the results of the first quarter of 2022. One did well and the other, badly.
As a result, the shares of the two companies, on Nasdaq, in New York, are moving in opposite directions:
Is it worth investing? See below for more details on the scenario and the expert assessment.
“During the quarter, Google considerably reduced its operations in Russia due to the invasion in Ukraine”, recalls Thiago Lobão, president of Catarina Capital.
“The numbers showed a 23% growth in revenue, a slowdown from the 34% high in Q1 2021,” Avenue Intelligence reported.
For Microsoft, the highlight was the “cloud” area (cloud data) of the company: the Azure system grew by 49%, not counting the exchange rate variation, compared to the same quarter last year. “This division continues to be the main engine of growth for the company, and the result consolidates Microsoft as the second largest company in the sector, behind AWS, from Amazon”, says Natan Epstein, partner at Catarina Capital.
The Office 365 division, which grew 20% this quarter, also shined. Overall, with the exception of the XBOX division, all other areas grew by over 10% compared to 2021.
In a document, Avenue Intelligence, the research area of brokerage Avenue Securities, also points out that Microsoft announced a plan to acquire video game publisher Activision Blizzard for US$ 68.7 billion, the largest transaction in the 47-year history of the technology company. Bill Gates.
Microsoft also closed the acquisition of Nuance Communications and established an expansion strategy in healthcare, the sector in which Nuance focuses.
What do analysts say?
Brazilian investors can invest in companies listed on American stock exchanges by purchasing stock receipts — on the São Paulo Stock Exchange. These are the so-called Brazilian Depositary Receipts, known as BDRs. It is also possible to buy the American share, opening an account at an international brokerage, and thus directly purchase the share paper.
Microsoft’s BDRs (MSFT34) are in line with US shares, up 6.51% at R$58.93. Google’s share receipt (GOGL34) took off from the American market and instead of falling, it rose 1.12%, quoted at R$75.84.
Among US technology companies, the recommendation is not to buy either Google or Microsoft, according to Avenue.
“They are good bets, but they are very expensive. There are similar cheaper options”, says Guilherme Zanin, an analyst at Avenue Securities.
If you don’t care about price, XP recommends purchasing the MSFT34 BDRs. The valuation estimate is to reach R$ 90.35 The bank has no evaluation for Google.
