Analyst calls on Google were as follows:

Credit Suisse reiterated its Outperform rating with a $690 price target, raised from $683.

Oppenheimer has a Perform rating. It said:

Modestly lowering target to $550 from $565, after Google reported weaker than expected first quarter revenues in the US, along with an FX drag.

Wells Fargo called Google a solid quarter with commentary calming cost per click fears. The firm tweaked estimates:

FY2015E revenue/non-GAAP EPS lower to $74.5B/$28.00 from $74.8B/$28.07; and FY2016E revenue/non-GAAP EPS to $86.8B/$32.86 from $86.5B/$33.03. Mobile trends were said to be likely better than feared. Wells Fargo’s $600.00 to $625.00 valuation range reflects a PE multiple of approximately 18.6 times its 2016 EPS estimate of $32.86.

Deutsche Bank reiterated its Buy rating and raised its target price to $670 from $625.

JPMorgan reiterated its Overweight rating and raised its target to $650 from $600.

RBC Capital Markets reiterated its Outperform rating and raised its target to $640 from $630.

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Microsoft

Microsoft is not a calendar year, so this was its third-quarter fiscal 2015 results. The software giant reported earnings per share (EPS) of $0.62 on revenues of $21.73 billion. In the same period last year, the company reported EPS of $0.68 on revenues of $20.4 billion. The consensus estimates called for EPS of $0.51 on revenues of $21.06 billion. During the quarter, Microsoft returned $7.5 billion to shareholders in the form of share repurchases and dividends.

Commercial cloud revenue rose 106% (up 111% in constant currency) and Windows volume licensing revenue declined 2% (up 1% in constant currency). The company now claims more than 12.4 million subscribers to its Office 365 Consumer subscription base, up 35% sequentially.

The company’s formal management quotes were not very robust. CEO Satya Nadella said:

Customers continue to choose Microsoft to transform their business and as a result we saw incredible growth across our cloud services this quarter. Next week at Build we’re excited to share more about how we’re empowering every individual and organization on the planet to achieve more with the next generation of our platforms.

Amy Hood, the chief financial officer, said:

We executed with strong operational and financial discipline again this quarter, and are seeing positive impact from our investments in key growth areas. We remain focused on maximizing shareholder value and again increased our overall return of capital to shareholders.

Analyst calls on Microsoft were as follows:

Bank of America Merrill Lynch maintained its Buy rating and sent its price objective up to $47.

Credit Suisse reiterated its Outperform rating, but the firm lowered its 2016 estimates. The report said:

Office 365 and Azure continued to show strong performance-with Office 365 reaching 12.4 million consumer subscribers (up 35% sequentially) and Commercial Cloud revenue growing 106% year over year. We are adjusting our FY2015 revenue to $93.560 billion from $94.412 billion and leave our EPS unchanged.

Oppenheimer has an Outperform rating and a $50 price target. The firm indicated that Microsoft is continuing the positive momentum from previous quarters and that was driven by:

1. Ongoing momentum for Cloud services
2. Continued strong internal execution
3. Hardware making a difference (Surface and Lumia)

Internal realignment and cost management efforts drove improved operating margins.

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Wells Fargo’s valuation range of $46.00 to $50.00 and Outperform rating is based on a 10 to 11 times enterprise value-to-cash flow from operations multiple on its fiscal 2016 estimate. The firm said:

We believe that a cash flow multiple in line with the company’s CF growth rate is warranted, as the company navigates in this post PC, mobile first, cloud first era. Key risks for Microsoft include a slower-than-expected PC refresh cycle; ongoing declines in demand as consumers choose mobile computing devices, competition in all of their markets, including their Windows operating system, and piracy issues outside of the U.S., all of which could negatively impact growth. … Microsoft has many growth opportunities in its various product areas. The commercial business is growing nicely, however this is offset by a challenging PC market. We like the company’s current focus on mobility and cloud, and think that there is room for multiple expansion as the company gets through its transition.

Goldman Sachs reiterated its Sell rating and $40 price target.

Nomura reiterated its Buy rating and raised its target to $50.

RBC Capital Markets reiterated its Buy rating and raised its target to $50 from 47.