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What’s going on here?

Alphabet posted a better-than-expected report card for the third quarter, with sales and earnings that landed above Wall Street’s usual lofty expectations.

What does this mean?

Google’s proud parent dished up revenue growth of 15%, to hit $88.3 billion, well ahead of analysts’ expectations. Eyes were on Google’s breadwinner: advertising (a.k.a. Google search and YouTube ads) which raked in $65.9 billion, up from $59.7 billion from the same period last year. Meanwhile, Google Cloud maintained its solid trajectory, growing revenues to $11.4 billion, up 35% compared to last year, and beating analysts' estimates of $10.9 billion. That latest set of results will be a relief to investors as Alphabet has only barely kept pace with the S&P 500’s 23% rally this year.

Why should I care?

Zooming in: An advertisement for success.

Google’s gamble on the cloud seems to be paying off. But the digital ad game is getting pretty tense, with Amazon and Meta both throwing elbows. Last quarter’s 10% growth in the division may have put folks’ worries to rest, at least for now. But investors are going to want details soon on how Google plans to monetize AI – while not giving up any profitable ground to it.

The bigger picture: Breaking up the party.

Shareholders might want to hold off on the celebrations just now. See, Google’s not just batting away competition, it’s also under serious regulatory scrutiny. Once the undisputed ad champ, it now faces an antitrust trial that questions its dominance, especially in search. And the fallout could be drastic – potentially resulting in selling off Android, Google Play, or Chrome – which could mean some serious changes in its business model. US regulators are expected to make an announcement on November 20th – and investors have that date circled in red.

What’s going on here?

McDonald's third-quarter update was too tasty for investors to pass up on Tuesday.

What does this mean?

A “Meal Deal” approach to McDonald’s update would say the company’s revenue and profit were more or less in line with what investors were expecting. A “Dollar Menu” take, though, might say McDonald’s slightly beat expectations. But let’s not split hairs fries… Investors were focused on McDonald’s same-store sales growth – which gives a clearer picture of how the brand is faring. And the results there probably made a few of those folks grimace: although the US was stronger than expected, growth in the rest of the world was much poorer and dragged the overall figure down to a level that was worse than feared.

Why should I care?

For markets: Nothing to do with the US election, promise.

Days ago, McDonald’s was at the center of an E. coli outbreak affecting stores in 13 US states. The company addressed the issue, tracing it back to ingredients in some of its burgers – and definitely nothing to do with any recent high-profile visitors. But it did see US store visits drop 10% just after the outbreak and its stock fall about 6%. Add that to the initial 2% drop it took after the earnings update on Tuesday, and this hasn’t been the best streak for shareholders. Then again, Chipotle’s E. coli scandal in 2015 saw the stock fall by almost half. So it could be worse. And the investors who are craving an entry point into what’s usually a stable business might be lovin’ it all the same.

The bigger picture: Slimming down.

Updates from McDonald's can be a helpful barometer of Main Street’s spending since a meal from the Golden Arches, while cheap, is often a treat. The company’s US growth and better-than-expected consumer confidence data out on Tuesday suggest Americans are holding up. But outside the US, folk have dialed back their fast food spending.