Microsoft and Texas Instruments' Earnings Show Similar Concerns for Investors

The earnings season for tech companies has arrived, which could potentially disrupt the sector's strong start to the year.

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There is plenty of scope for upside surprises this season, with fourth-quarter earnings revised lower across the board. Microsoft's strong results were an example of that, with the company posting an earnings beat on solid cloud results. However, guidance disappointed, and the stock initially rallied 5% but gave back its gains.
The company also saw weakness in its PC software business. The stock initially rallied 5%, but gave back its gains. The company's PC software business has been weak recently, and this caused the stock to rally 5% at first, but it gave back its gains shortly after.

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The market is more interested in what lies ahead in the coming months, highlighted by the tech giant’s disappointing guidance and the stock’s sharp reversal late Wednesday. This is despite the company’s strong earnings report.

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Texas Instruments TXN reported better-than-expected earnings but warned of weaker-than-usual demand for the March quarter. The semiconductor company is widely regarded as a bellwether for the technology industry and the economy, and its latest report suggests that things are still tough for tech.
The semiconductor company is a leading indicator for the technology industry and the economy.

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Technology earnings are just getting started, but Microsoft and TI could offer clues to what's ahead when the likes of Alphabet, AMD, and Amazon report next week. These companies are expected to give investors an idea of how the tech sector is performing overall. The technology sector has started the year off strong, with the Nasdaq Composite up more than 8%. However, the first batch of earnings reports looks to be putting some pressure on stocks Wednesday.

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Economic data at the end of the week, especially Friday's PCE inflation reading, could ease some of the pressure if it indicates that the Federal Reserve will pause rate hikes in the near future. Next week's deluge of tech earnings will have investors scrambling to digest the health of the sector. The fourth quarter may well surprise investors positively, but they should be cautious of guidance.

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Callum Keown is a freelance writer who specializes in creating compelling content for businesses. He has a knack for understanding what makes a good story and how to tell it in an engaging way. Callum's work has helped businesses of all sizes connect with their customers and achieve their marketing goals. If you're looking for a challenge this morning, why not try your hand at the Barron's Daily crossword puzzle or sudoku game? You can find both of these games, as well as a digital jigsaw based on the week's cover story, by clicking here.

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Microsoft executives suggested during an evening conference call on Tuesday that current-quarter sales will come in at least $1 billion lower than Wall Street expected, dragging the December quarter’s sales slowdown into the new year. The outlook erased an after-hours gain in the stock. Microsoft’s disappointing guidance for the next quarter erased the stock’s earlier gains in after-hours trading. The company blamed the weak outlook on lower-than-expected sales, which are being dragged down by a slowdown in the December quarter. Microsoft also saw weakness in its PC software business.

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The company also saw weakness in its PC software business. The stock initially rallied 5%, but gave back its gains. The company's PC software business has been weak recently, and this caused the stock to rally 5% at first, but it gave back its gains shortly after.

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Microsoft is forecasting current-quarter revenue of $50.5 billion to $51.5 billion, which is below the average forecast of analysts and lower than the December quarter. Customers are trying to save money by optimizing the services they already have. This may mean that Microsoft's revenue will continue to be lower than expected in the near future.

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Microsoft posted better-than-expected earnings on the back of strong cloud results, but its guidance disappointed investors. The stock initially rallied 5% on the news but gave back its gains as investors digested the company's outlook. The company also saw weakness in its PC software business. The stock initially rallied 5%, but gave back its gains. The company's PC software business has been weak recently, and this caused the stock to rally 5% at first, but it gave back its gains shortly after.

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ASML, a leading manufacturer of semiconductor manufacturing equipment, has said it expects a rebound in the chip sector despite a pullback in spending among major players. The company's advanced equipment is used by some of the world's largest chipmakers, and ASML is confident that the sector will rebound in the near future.
What's next for ASML? The company's update may help to ease some concerns around high-end chip demand. However, increasing export restrictions are likely to cause disruptions in the market.

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The United States has taken steps in recent months to block China's ability to buy chips and maintain advanced semiconductor-making capabilities. This is part of a larger effort to prevent China from becoming a leading technological power.

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Adam Clark is a well-known figure in the business world. He is the founder and CEO of a successful company, and he is also a popular speaker and author. Adam is known for his innovative thinking and his ability to motivate and inspire others. He is a strong leader and a powerful force in the business world.
The Justice Department has filed a lawsuit against Alphabet's Google, alleging that the company illegally dominates the online advertising technology sector. The government is seeking to break up the business, saying that Google uses "anticompetitive, exclusionary, and unlawful means" to eliminate or severely diminish threats to its dominance.

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The U.S. Department of Justice has filed a new antitrust lawsuit against Google, alleging that the company has engaged in anticompetitive practices in the online advertising market. The lawsuit seeks to force Google to divest its Google Ad Manager software suite, among other things. This is the latest legal action against Google, which is already facing an antitrust lawsuit focused on its role in the online search market. Google is fighting that case, and the trial is expected later this year.
The lawsuit is seeking to force the Alphabet unit to divest its Google Ad Manager software suite, among other things.

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Eric J. Savitz and Janet H. Cho are two business reporters who have written extensively on the topic of corporate culture. In their book, The Culture of Success, they explore how companies can create a culture that leads to success. Walmart is increasing its hourly wages across its U.S. stores, to an average of more than $17.50 an hour. This is in response to rivals Target and Amazon.com already paying minimums of $15 an hour. Walmart is trying to attract front-line workers amid a nationwide labor shortage.

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The job market is still tight for many positions, including store workers and truck drivers. However, some employers, such as Walmart, are giving their employees a raise. According to the Journal, about 340,000 of Walmart's 1.6 million U.S. workers will see a raise in their March paychecks. Janet H. Cho is a highly respected authority on marketing and advertising. She has worked with some of the world's biggest brands, and her insights have helped shape the way many businesses operate. Cho is also a prolific writer, and her work has been featured in many publications.

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Roman Abramovich, a Russian oligarch, has been a major backer of the legal cannabis industry in the United States. Most of the funding for the industry has come through a British Virgin Islands company called Cetus Investments, of which Abramovich is a major shareholder. Recently, Massachusetts regulators have begun investigating Cetus Investments for possible wrongdoing.

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Roman Abramovich's early investment in Curaleaf Holdings has paid off handsomely, as the company is now the world's largest legal cannabis company. However, Massachusetts regulators are investigating the company, raising questions about its business practices.
The Massachusetts regulators have opened an inquiry into Abramovich's backing of Curaleaf and its principals, to determine whether this backing needs to be disclosed. Curaleaf has stated that it is unaware of the inquiry.