Countrys biggest bank is taking issue with and where he sees the economy going on. And later, personal finance expert suzeor orman is here. Im melissa lee, coming to you live from studio b at the nasdaq. On the desk tonight and we start off with a full slate of Earnings Reports. Microsoft, alphabet, visa, snap, all on the move after their latest results. We have full team coverage. We start off with steve kovach, who has all the details from microsofts quarter. The stock is higher right now, steve. The Conference Call is in about a half hour. Microsoft shares are up. The solid beats on the top and bottom lines, but heres whats more important. Reversing some trends that weve seen. Azure cloud growth up 29 versus the 26 gross the street was looking for. Thats exactly what investors wanted to see, after several quarters of declining growth. Now, what to listen for in the earnings call. Do they believe azure bottoms and continue that acceleration that we saw last quarter or is it going to stall again . Now, look, lets go to windows. This is interesting. Oem revenue was up 4 , returning to growth. But keep in mind, comps are much easier compared to last year. And ill say it before the folks here at the desk can say it, wait for that earnings call, starting at 5 30. Thats when microsoft gets outlook from the quarter and you should especially listen for commentary on demand for copilot, the a. I. Assistant, microsoft is going to start selling it a week from tomorrow. Ill be back here with more if we get some of those details on the call. Last quarter, we did see the stock move lower on copilot. On copilot after the show when the company gave guidance. If microsoft gained a lot this year on the hopes of that a. I. Pixie dust that weve been talking about, we want to hear that, because theres been talk about the install base adopting its a. I. , you know, programs listen, in that last quarter, that last piece of guidance back in july came at a time when they announced the pricing of copilot. Next week, theyre going to be talking about this and start to guide to this when customers start paying for it. So, thats what a lot of investors want to hear. And if you think about the high it made, the alltime high the day it announced the pricing of that copilot, we all remarked, the stock went up 5 in a Straight Line intraday, we were doing the math, it was 70 billion in market cap, Something Like that, some eyepopping sort of number. When you look at the situation here, the stock sold off 15 to its lows in august after that Earnings Report. It has recovered a little bit. Its up here. Waiting for the guidance now. Im sure youre going to be fairly constructive, maybe not at 30 times right here, but they just closed this activision deal. I dont mean to sound really excited about this, im just its just your way. If youre a bull, theres a lot of things you can point to, especially in the guidance is not disappointing, why this should be back on the horse. I agree with everything dan said. Theres a lot to like here. That reacceleration, thats a really good thing. And well get to alphabet, but contrasting that, they didnt have that reacceleration. Slower growth. I mean, theres a lot to like. The whole question is, though, what is the right multiple . What are i paying for . How much of a premium should they get . They should get a market premium. Its an extraordinary business and the margins are phenomenal, but where are we in the pixie dust growth . At 30 times, doesnt seem crazy to me. I have a very small position right now, wish i had more, but unless we hear something very different, theres a lot to like here. Especially if they are showing reacceleration relative to some of their competitors in the Cloud Business model, maybe it really deserves much more of a premium in this sort of environment where you want safety, you want execution. I tend to agree. I think its tend to push for a higher multiple here, i mean, at 30, 31 times, i think its what it trades. Theres been pull forward in terms of expectations in terms of a. I. Its definitely will sustain the multiple, but i dont really see more than one or two turns, perhaps three turns, and conversely, theres probably eight to ten turns of downside. If you look back three, four years, this thing was trading at 19, 20, 21 times. Its about finding that balance there. With that said, expectation is relatively high, though it did have weakness since it peaked out in july. I think the setup was set up for it to be constructive, but the facts are, they delivered. And i think, you know, 30 times, its really hard to argue selling it when they are actually delivering. The stock setup was actually very constructive. Its been rangebound since that july report, julie. It was, you know, between 310 to 330, its finally broken out. What would you like to hear on the Conference Call . Well, i think part of the reason why we traded sideways is i think everyone looked around, was like, wait, when is this a. I. Stuff really going to take shape . And i think any kind of early indication that having a. I. Within their cloud offering makes the business stickier is going to give people a lot more confidence that theres durability to these earnings. And in this level of kind of uncertain times, people are willing to pay for that. I think where the stock is trading today, it is richness of this multiple and even this reaction afterhours is a function of the fact that a lot of businesses so far that have been reporting havent been executing quite as well. And particularly, once you have some dampened expectations, that is what moves the stock higher. Like, when you have kids, you have to have low expectations, its kind of the same thing with stocks sometimes. When we think about the guidance thats going to come out, we want to focus on enterprise customers and demand for these products. There was an article say todaying openais Corporate Sales come under pressure as a. I. Customers eye cheaper options. So, these are corporate customers theres going to be the ones that are going to be buying these copilot sort of service added onto their microsoft 365 that theyre already paying for, openai obviously, microsoft invested 13 billion into it, they are going to integrate it into bing and all that stuff. We spend a lot of time talking about a consumer that might or might not be weakening, and then we think about, what is Enterprise Spending look like from here on out, if we have a weakening economy, we talked about it last week, i think microsoft laid off 700 people in their linkedin division. Thats flat. We know the headwinds in advertisingbased models and such. Stocks up, it could be down 4 in an hour and a half or so, and it doesnt really change the story, its just the expectations, i think, still remain high, despite the stock is down 10 from highs in july. Believe it or not, because 30 is a multiple, with rates where they are right now, where lots of Growth Investors are starting to kind of just say, is this if this is going to be a harder 2024, how am i set up with the big names that are very crowded right now. And we, you know, they are crowded. Make no mistake about it. Microsofts call in 25 minutes time. Lets move onto alphabets. Despite top and bottom line beats, the search giant seeing a rebound in advertise, but cloud numbers were below expectations. Dee idrdre bosa has the details. Expectations were high for alphabet, and you can see the stock is down nearly 7 in the afterhours. The analyst call just kicked off about 35 minutes ago. It was opened by reflecting on the last 25 years, milestones they just hit in september and spent a lot of his remarks looking ahead to the, quote, opportunities enabled by a. I. There was good updated stats on youtube. Shorts is averaging 70 billion daily views. There are 150 millionplus people watching youtube on tv screens every month, thats a socalled living room segment. Also shoutout to nfl sunday ticket that they said is helping to drive engagement and subscription growth. Google cloud, though, fell short of the streets expectation. It was affected by some customer cost optimization in the Third Quarter, which could temper expectations ahead of amazon for its cloud unit reporting later this week. Porat reiterated they continue to invest in generative a. I. Q3 cap x was 8 billion, driven overwhelmingly by a. I. Compute. It seems the stock took another leg lower on that, and analysts just asked about the monetization of that a. I. Drive and you guys were just talking about it. The team at google said that a subscription model was one possi possibility, but they also sthad generative a. I. s effect on search is still going to boost and keep their ad business strong. Back to you. All right, dbo, thank you. Deirdre bosa on alphabet. Karen, what do you think . The search part was good. Theres still growth there, so, that was good. The cloud part, which is really been kind of the outside fore us can versus its size, that was disappointing. The margin there was disappointing. Particularly in light of we just said microsoft showing pretty good cloud growth, so thats a little bit disappointing. Some of the kind of noisy things that made the beat were things that i kind of dont care about, so you know, google bet, stuff like that. So, it was okay. Its a different multiple, obviously, than microsoft, so, you know, i kind of let it shake out a little. Its a big position for me, so mildly disappointed, but im not going to sell, theres nothing terribly wrong here. I can agree. If anything, i would rather be buying on weakness. I understand we wanted to see better results from the cloud, but the fact of the matter is, these companies came out last quarter and said that enterprise customers were looking at ways to kind of make their spend a bit more efficient. We got a bit of a lead here. I understand, particularly looking at the tail of two clouds, they didnt deliverer in the way microsoft did. With that said, i still think ad spin is definitely a positive sign, because on one hand, youre worried about enterprise, on thor hand, youre worried about ad. And to see that tick back up gives me hope for the economy and for other platforms. And the last thing ill say is, this reminds me a bit of meta. Not exactly the same, but when meta kind of got smacked around for spending that money on that metaverse and we didnt know how they were going to monetize it, were seeing that in terms of the infrastructure spend on generative a. I. , but i really have if theres some company that i dont have doubts about their ability to tlifer erdelivt front, it is likely alphabet. You mentioned ads and meta, i would think on the ad beats for alphabet that meta would be okay in the afterhours session, its down by about a percent, julie. And how do you look at alphabet right now, and how are you feeling about meta later this week . Yeah, i think for the longterm investors, i think alphabet is such a great place to be. Generative a. I. Is really in their becomeyard in terms of where it started, and i think that they are being thoughtful about how they expand it and i think that in the over the longterm, this is still a very strong, strong business. The biggest problem this Company Faces is more on the regulatory side than anywhere else. Just such a strong level of profitability and cash flow, and i think that was very encouraging to see. For sure, its a little disappointing to see that, you know, the margins, particularly on the Cloud Business, were not exact ly where you would want them, but its what you would expect, given the level of investment they have to make to support that infrastructure, so, i think i agree that, you know, this is a business that lives and dies on its ad business. The cloud can sometimes be helpful or hurtful, but its more important to gauge the strength offed a verve tuesdayers, and i think that weve seen that. For meta, its going to be interesting to see, too, im really curious about whats going on with threads and how thats impacting their business, because i think thats a place they have an opportunity. Interesting, so, if were going to just trade these names, like, in the last three months, you know, when amazon reported, aws, last july, right,it, like early august, i think, the deceleration wasnt as great as people expected, the stock popped on better than expected retail, okay, and then microsoft sold off because there was, you know, and then this one now is down 7 after this this had a big gap last quarter, because, you know, it was better than expected. These hyper scalers, theyre all this is it. Theres no one else. Oracles going to try, ibm is going to try. This is what you have to play with. And i think that if each quarter y , youre going to trade them, because one takes 2 of the share of the other. I think just to put this point, you guys both made this, google, alphabet has the best valuation support. We expected 20 eps growth next year, doubledifferent sales growth, and again, if their margins are expected to decline, you know, yearover year a bit, that is what theyre telling you, because the cost of compute, to integrate this generative a. I. Into, like, all of their, whether its their productivity tools, search, whatever it is. So, i think you have the valuation support here that you dont have in microsoft, and i actually would probably rather bet on google able to do a better job, and really commercialize products better than microsoft. I dont know about you guys, microsoft is not the product you want to go home kwand use it they dont have pearl devices, and google is so ingrained in our online behavior here. And you think about their ability to do it with youtube and other things. Google, if it goes back and fills in that gap towards 122, where it was last july when it reported, i think its an easy buy right there. For more, lets bring in fast money friend gene munster. Gene, good to see you. Microsofts quarter as good as the stock pop . Well, i think investors should just take a deep breath. We put a lot of pressure on google cloud number, the deceleration, understand thats caught peoples attention from 28 to 23 , while azure had that step up from 26 to 29 , but the deep breath piece of this is just looking at the aggregate of what is in front of google over the next decade. They essentially have are losing share in cloud right now in part because of microsoft a optimizing openai on azure. So, they are gaining usage because of that. Googles answer to openai is their new gemini platform. That is they were talking about it on the call here the past 35 minutes, and thats their new thats their answer to openai. As that gets integrated, it will start in the december quarter and further new models, they said, will be announced in 2024. Microsoft will announce new models, too, but i think that this scale will tip back towards google or more level Playing Field between google and azure and well see a reacceleration. But most importantly, the reason why i think investors should ultimately view whats going on at google as positive is, they are investing more, but they are doing it judiciously. They are saying theyre going to grow earnings faster than expenses. And if i if this plays out in terms of how search is going to be impacted by a. I. , were just at the very beginning of this. And i just want to fill in the final thought here, melissa, in terms of why search is important, relative to a. I. , is what google wants to do is take what you use google for today, that is for information, 1 navi navigation, and commerce, and add onto that basically generative features. Sol, as they add that, youre going to go to google more over time, and theres more opportunities for them to monetize search. And so, big picture here, the google story is intact. I havent even talked about microsoft, because im just so surprised at googles reaction here. Jgene, its karen. Thanks for being on. How do you think about the valuation of google here, and what penalty, or what do you put on the contra side for the doj lawsuit . So, im in dans camp. He was outlining the valuation p perspective here. I think its at the top of the most attractive,thats why at deepwater we own shares of google. It is, i think, the most attractive and probably the best positioned relative to the opportunity in a. I. , so, karen, i think that the valuation is attractive. Second in terms of just whats going on with, you know, this the risk to regulation is, this catches headlines, its an important topic, but i dont think much is going to change. And dont have the time to go through the game theory in terms of how this most recent piece is going to change, relative to their ability to bid on placement within, like, safari, for example, but i think that i dont think its going i think it will play out to be ultimately a net neutral for google. These headlines will pass and i think investors are going to focus on what matters most with google, which is why they have a pole position with what is going to be a decade shift towards a. I. Real quick, gene, on microsoft, because we didnt touch on that at all, does the quarter so far we havent gotten to the call , but does te quarter put a floor under the valuation . I think it does. I think theres reason for optimism. Microsoft is going to be the first beneficiary of a. I. Weve seen it with the azure business in the september quarter. Were going to see when they start to turn on the monthlies for adding copilot, which is going to be in the middle of november, so, i think that dire directionally, analysts are going to find addition sign on their keyboard tonight when it comes to estimates for 2024. Gene, thank you. Keep us posted on anything youre hearing on either of the calls here. Will do. Thanks a lot, gene. See you later. Okay, dan. Microsoft oral fa al phabet, ea. Alphabet. Alphabet for sure. Wow. Clean sweep. Oh going to buy microsoft. Well keep up posted on the calls. Coming up, more afterhours action. Snap and vitvisas numbers. Plus, jamie dimons harsh words for the fed. What it means for the markets and the economy. Dont go anywhere. Much for fast money in two. Im so glad we did this. Im so glad we did this. Im so glad we did this. Life is for living. Lets partner for all of it. Im so glad we did this. Edward jones upbeat music awww. Awww. Awww. Nope. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. Welcome back to fast money. Weve got even more earnings goat to tonight. Snap back in the green after a sharp reversal after its results. Well get to that in a minute. But first, visa beating on the top and bottom line. Kate rooney is on the Conference Call. Melissa, the executives have been talking about strong Consumer Spend