Earnings Reports: A Tale of Two Extremes! Google Plunges, Microsoft Soars! 1. Google (GOOGL): Google's earnings report was a major disappointment, with EPS and revenue both falling short of expectations, and free cash flow turning negative by $9 billion. Most surprisingly, capital expenditure guidance was also lower than anticipated, indicating that the report failed to instill sufficient confidence in investors. The only bright spot was the 103% year-over-year growth in cloud revenue. Short-term focus is on whether the 295 level can hold. A break below 300 would make a rebound difficult, with 275-282 potentially becoming the next support level. A quick recovery after breaking below 290, leaving a clear lower shadow, suggests buying interest, but further confirmation is needed. A rebound above 300-305 would offer some relief from short-term selling pressure. 2. Microsoft (MSFT): Microsoft performed much better than Google this time, with both revenue and EPS exceeding expectations. Cloud revenue grew by approximately 48% year-over-year, and AI demand in the commercial sector continues to grow. It hasn't been as aggressively betting on AI as Google, instead relying on its existing businesses like Azure, enterprise software, and Copilot to generate revenue. After-hours trading saw a 3% rise, nearing its 52-week high of $551.15. Only if it can hold above the gap-up area after the official opening and break through the $551 level with significant volume will the upward breakout be further confirmed! Are you bullish on Microsoft's strong breakout pattern, or are you prepared to buy Google at the bottom?