January 26, 2017 Last Updated 3:42 pm

Google and Microsoft both report solid earnings, higher revenue

Alphabet reported quarterly revenues up 22 percent year on year, but its costs of revenue also rose, giving some investors an excuse to take down the stock in after-hours trading

The days of everyone waiting anxiously for Apple earnings are over, other techs have taken over the top spot. But, let’s be honest, it is hard to keep our attention on such things as earnings when all hell seems to be breaking loose (a 20% tariff on Mexican goods, really? Well, it looks like they are walking that one back as the afternoon wears on).

But this is earnings season, and the techs generally report first, with the publishers a week or two later. Apple doesn’t report until next Tuesday, but Google (I mean, Alphabet) reported today – and they had a blow-out quarter.

“Our growth in the fourth quarter was exceptional — with revenues up 22% year on year and 24% on a constant currency basis. This performance was led by mobile search and YouTube. We’re seeing great momentum in Google’s newer investment areas and ongoing strong progress in Other Bets,” said Ruth Porat, CFO of Alphabet.

Despite the amazing numbers, I’ll give you one guess what is happening to Google stock in after-hours trading… yep, investors are taking the stock down. The reason could be anything, but BusinessInsider has mentioned that the company is spending a lot of money still on its “moonshot” projects, and I guess some investors are not happy about that. Poor babies. The other reason may simply be that the stock market has hti record highs, so there was bound to be some profits to be taken out.

It may also be, however, that the new president is taking about starting a trade war, while his senior advisor is declaring war on the media. Really, guys, can you consider going on vacation for a week or two to give us all a break?

Microsoft also reported after the bell this afternoon, and it beat estimates by bring in second-quarter adjusted earnings per share of 83 cents on revenue of $26.07 billion. Investors were looking for 79 cents a share on $25.3 billion in revenue, so I guess you would call that a beat.

It’s Microsoft’s cloud business that is driving growth, an area where it need not concern itself with Apple. In fact, this may be why so many are down on Apple these days, it thought its smartwatch would be a thing, while the rest of tech is concerning itself with things like the cloud, VR, etc.

Microsoft stock used to be leader, but it fell badly after the tech bubble burst, then again during the fiscal crisis. But its losses after that, and before it replaced its CEO is what really made Microsoft the sick dog of the tech industry.

Those days are over, and as CNBC pointed out today, Microsoft stock is now trading above its tech bubble price. Quite a recovery. (And those damn Windows phones did seem to kill off the company._

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