So what you see behind me is Microsoft Reporting earnings beating expectation and yet still selling off for one specific reason and we're going to talk about it. What's going on guys, It's Ricky here with a super quick stock market Update: I Really hope that you learned something new, and if you do, please consider dropping a thumbs up and subscribing. If you feel like we earned it, let me go ahead and start sharing my screen. So when it comes down to Microsoft after reporting earnings, remember, we always talk about there's two main focuses when a company reports earnings.

It's the actual earning report itself. So depending on the stock itself, it's either before the Market opens or after the market closes. Microsoft was after the market closed. As you can see, the initial reaction was negative.

It somewhat found a support right around 338 and then rebounded. And then we were waiting for the second part. That is the earnings call. This is where not only do they talk about the previous quarter, but then they give a forecast for the up and coming quarters and in my opinion and 100 just my opinion.

I Believe that the earnings call because of the future forecast is more important than the reporting of the previous quarter. Obviously, you still want the company to report good, positive earnings and beating expectation, but as you can see, beating expectations doesn't mean Jack poop when guidance is off. So when asking the question, why did Microsoft sell off Microsoft be earnings per share, right? If you guys tuned on into our live stream. Microsoft's earnings per share was 2.69 cents per share with the expectation of 2.55 cents a share.

And then it also beat Revenue at 56.2 billion with the expectation of 55.44 billion. So why did it sell off? Very very simple. Microsoft Msft Fiscal Fourth Quarter earnings revealed a sequential decline in Azure Cloud Revenue growth. So again, very simple to understand that overall investors were were really micro focused and then in this one specific area and this overshadowed quarterly profits and revenues that topped Wall Street's estimate right.

Then again, talking about the guidance call during a call with investors, this is the guidance call that they're referring to Microsoft projected observes growth between 25 and 26 for the current quarter when asked directly in the sequential drop in Azure Revenue growth if it had bottomed out Microsoft Management did not provide a clear guide and again, when you beat around the bush and you don't give investors exactly what they're asking for, then of course they're going to expect the worst or assume the worst. And then this is why we are seeing Microsoft having a second win, right? This was the initial sell-off on when the report was released and then recovered and we waited for earnings. Uh, the actual earnings call. It gapped up and then gapped right back down.

I Guess they didn't say AI enough times I Don't know if you guys tuned on into Google's earnings call, but this one, literally every other sentence had the word Ai and Google beat expectation. And also they announced that their CFO now is becoming their CEO or overall executive. So that's some exciting news. and again, Google's market cap right now is at 1.55 trillion.

So that one now that we talked about Microsoft and what happened for it to cause cause it to sell off I Want to remind you tomorrow which is July 26th on Wednesday After the market closes, Meta is going to be reporting earnings. Meta has a market cap of 754 billion dollars. But one thing that might be more important and that we might see the market trade sideways. Leading up to it is at 2 Pm Eastern time there is going to be an Fomc meeting which is going to announce an interest rate hike or an interest rate pause.

But according to the Fed rate monitor tool, there is literally a 98.3 percent probability that the Federal Reserve is going to be raising interest rates a quarter of a basis points. I Do plan to live stream that Fomc rate hike for free on my YouTube channel. and like we said before all I literally ask you to do is to subscribe and to drop a thumbs up. I'll take care of the rest If you want to be able to watch me trade live as soon as tomorrow, that is going to be the second.

Link in the description down below as I Trade live with one team and one team only and that is our learn plan profit team. If you want to see if it's a good fit for you, I would encourage you to take two minutes, Click the second link down below, learn more about it, and see if it's a good fit for you. If you have any questions before joining, shoot me a direct message via Discord and that's the first link in the description down below, Or shoot me a direct message via Instagram and that's the third link in the description. Everything is linked down below I Hope that you guys appreciate the short but sweet just summary of what caused Microsoft stock to sell off and I hope that this can better prepare you for up and coming earnings as Apple and Amazon still is yet to report earnings, but that's going to be next week and with Meta reporting earnings as soon as tomorrow.

pre-share time like always, let's make sure that we're in the year. On our green note, take it easy team.