Alphabet and Microsoft Beat Earnings Expectations, Fueling Tech Sector Rally

lphabet and Microsoft both beat earnings expectations in the second quarter, sending the tech sector higher on Tuesday.Alphabet, the parent company of Google, reported earnings of $19.47 per share on revenue of $68.01 billion. Analysts were expecting earnings of $18.73 per share on revenue of $67.34 billion.

Microsoft reported earnings of $2.48 per share on revenue of $51.73 billion. Analysts were expecting earnings of $2.32 per share on revenue of $50.94 billion.

The strong earnings from Alphabet and Microsoft were driven by strong growth in their cloud businesses. Alphabet’s cloud business, Google Cloud, grew 45% year-over-year, while Microsoft’s cloud business, Azure, grew 29% year-over-year.

The strong earnings from Alphabet and Microsoft are a sign that the tech sector is still performing well, even in the face of rising interest rates and economic uncertainty. The tech sector is also benefiting from the continued growth of the cloud computing market.