Weekly Market Update 📈

**Starting Off With Alphabet**

Alphabet Inc. sees its quickest business growth in over a year with an 11% YoY revenue increase in Q3, thanks to a rebound in advertising. Reporting $77 billion in revenue, the surge is fueled by substantial growth in Search and YouTube, alongside Cloud momentum. Despite surpassing expectations with $19.7 billion net earnings, Google's stock saw an initial dip, possibly due to underperformance in its Cloud platform amidst stiff competition. While Alphabet advances AI initiatives for operational efficiency, the monetization of AI remains a focal point for investors and Wall Street, with Google's Bard still under user testing.

**Let’s Check Up on SnapChat**

Snap beats Q3 revenue expectations at $1.19B, with a lesser loss per share of 23 cents. With 406M daily users and future revenue estimated between $1.32B-$1.375B, the ongoing war's unpredictability has led to a pause in certain ad campaigns, affecting revenue. COO Jerry Hunter announces retirement.

**Important Update About Meta (Formerly Facebook)**

41 attorneys general across multiple states are filing lawsuits against Meta Platforms Inc., alleging the company designed addictive features in Facebook and Instagram, posing risks to children.

**Now Let’s Dive Deep Into Microsoft**

Microsoft Corp. beats expectations with stellar growth in Azure cloud-computing unit, driving impressive revenue and earnings results in Q1.

Azure and cloud services revenue surged by 29% (28% in constant currency), surpassing the company's own forecast of 25-26% growth.

Intelligent Cloud unit sees a remarkable 19% revenue increase, hitting $24.3 billion, surpassing analyst expectations of $23.5 billion.

Overall revenue climbs to $56.5 billion, up from $50.1 billion YoY, exceeding analyst projections of $54.5 billion.

September-quarter net income skyrockets to $22.3 billion, or $2.99 per share, surpassing expectations of $2.65 per share.

Productivity and business processes unit, encompassing LinkedIn and Office, records a 13% revenue growth, reaching $18.6 billion, outperforming estimates of $18.2 billion.

**Let’s Dive a Into a Bit of Economic Activity**

The recent auction of $51 billion two-year Treasury notes by the U.S. Treasury Department saw lukewarm demand, reflecting dwindling investor interest amidst concerns around the federal deficit and the trajectory of interest rates.

The highest yield on the two-year note matched expectations at 5.055%, signaling in-line demand. However, a lower bid-to-cover ratio of 2.64 times compared to previous months indicates less robust interest from investors.

Primary dealers, stepping in to buy up supply not taken by bidders, had to absorb 17.6% of the notes sold, marking their largest take since April. This trend follows a weak 30-year bond sale, although a 20-year bond sale showed stronger demand.

This tepid response sets a cautious tone for upcoming five-year and seven-year note auctions later this week, reflecting broader concerns in both the bond market and the economy at large.

The U.S. federal budget deficit is estimated at $1.7 trillion for fiscal 2023, up from $1.4 trillion last year, leading to higher government debt issuance.

Additionally, the potential for further Federal Reserve rate hikes might be deterring investors from Treasuries. Post-auction, the yield on the 2-year note rose to 5.103%, a typical reaction when demand is weak.

**What’s Up With The Orange Juice Market?**

Orange juice prices are at an all time high

Orange juice prices have seen a significant uptick. Why? Two major culprits: the greening disease spreading in citrus groves and extreme weather conditions.

Brazil, which is the world's top orange producer, hasn't been spared either. The country is grappling with the greening disease, leading to a substantial supply gap.

The disease doesn't just spread - it has tangible impacts. It's causing fruits to fall from trees prematurely, rendering them unsuitable for turning into juice.

The fight against the greening disease continues, with repercussions felt in our morning glass of OJ and on global markets.