Tech giants set for strongest quarterly revenue growth in a year

U.S. technology giants are likely to post their strongest quarterly revenue growth in at least a year as their legacy businesses stabilized, but investors looking for signs of a boost from artificial intelligence (AI) may be disappointed.

Microsoft, Google-parent Alphabet, Facebook-parent Meta Platforms and Amazon are expected to have built on the recovery in their enterprise software and digital ads businesses as professional and consumer spending stayed resilient despite an uncertain global economy.

The quartet’s shares have rallied — between Microsoft’s 36% and Meta’s 157% — this year, boosting their combined market value to over $6 trillion and lifting the benchmark S&P 500 index.

“After a year where enterprise spend was held down by concerns about the economy, we’re heading into a year where those concerns are slowly subsiding, making for a more stable spending environment in enterprise software and advertising,” said Gil Luria, senior software analyst at D.A. Davidson. Reuters