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Google (GOOG/GOOGL) and Microsoft (MSFT) were the first of The Big 5 to report 2Q22 earnings Tuesday afternoon – and their reports can best be characterized as mediocre.

Let’s start with GOOG/GOOGL. Core Advertising Revenues grew only 12% – compared to 22% in 1Q22. Operating Margin was also under pressure resulting in an 11% decline in Earnings Per Share (EPS). GOOG/GOOGL shares are currently +3% in the after-hours but that’s a relief rally at best after the brutal selloff so far this year.

MSFT’s results were similarly unimpressive. Revenue grew 12% compared to 18% in 1Q22. Revenue in their More Personal Computing segment grew only 2%. Operating Margin was also under pressure resulting in only 3% growth in EPS.

These are far from the juggernaut quarters seen during the pandemic – especially as far GOOG/GOOGL is concerned. While shares have come down significantly, it’s hard to get too excited about numbers like these.

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