Microsoft and Google's earnings reports are out! 1. Microsoft MSFT +2.9% A solid performer! Revenue of $92.3 billion exceeded expectations, up 19% year-over-year. Azure revenue reached $33.2 billion, up 48%. Capital expenditures were lower than the expected $50.7 billion. Free cash flow was positive for the full year. 2. Google GOOGL -10% For the first time in four years, both revenue and profit missed expectations! Revenue of $127.58 billion slightly missed expectations, up 25% year-over-year. EPS was down 26% year-over-year. Google Cloud revenue was $30.7 billion, up 103%, with an operating margin of 36.2%. Free cash flow was -$9.07 billion, the second consecutive quarter of negative cash flow. Capital expenditures are projected to increase significantly next year! Search advertising slowed for the first time, falling more than $2 billion short of expectations. This indicates that AI is changing the advertising business. Buffett's cost price is $310, resulting in a paper loss of nearly $3 billion!