Microsoft (MSFT) / Bill Gates

[winston]

not vested

Microsoft Corporation - Stock Analyst Research
Target Price* 480.00
Recommendation ACCUMULATE

Microsoft Corp - Azure remains a key growth engine

1Q25 revenue/PATMI was in line with expectations at 24% of our FY25e forecasts.

Total revenue grew 16% YoY, driven by strong demand for its cloud and AI-enabled services.

For 2Q25e, Microsoft expects revenue to grow by 11% YoY to US$68.6bn, fueled by a 32% YoY rise in Azure revenue and a 14% YoY increase in Office 365 commercial cloud revenue.

Microsoft’s 2Q25e implied operating margin is ~44%, flat YoY despite increased CAPEX for AI capacity expansion.

We maintain our ACCUMULATE recommendation with an unchanged DCF target price of US$480 (WACC 7.2%, g 4.5%).

Our FY25e forecast remains unchanged.

We believe Microsoft is well-positioned to benefit from the rising demand for large AI models, boosting Azure’s appeal and driving incremental revenue through Copilot AI tools.

Source: Phillips

https://www.poems.com.sg/stock-research/MSFT/

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How $MSFT makes money
https://x.com/Mayhem4Markets/status/1852403449830285791

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Bill Gates Could Go Bankrupt If Tesla Stock Surges 200% To Become The Top Company, Says Elon Musk
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Microsoft Shareholders Vote 'No' On Bitcoin Reserve
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[winston]

not vested

Microsoft is raising the price of its package of Office apps for consumers, a bet that subscribers will be willing to cough up more for access to new artificial intelligence (AI) tools.

The Microsoft 365 family subscription, which offers access to Word, Excel and other apps for as many as six people, will now cost US$130 a year, a 30 per cent increase, the company said on Thursday (Jan 16).

The version for individuals is rising 43 per cent to US$100.

The price changes take effect immediately for new subscribers and will affect existing ones when they renew.

Source: Phillips

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MSFT Tumbles On Cloud Revenue Miss
https://www.zerohedge.com/markets/msft- ... venue-miss

[winston]

not vested

Microsoft reported second-quarter earnings of $3.23 per share, up 10.2% year-over-year from earnings of $2.93 per share and beating analysts’ estimates of $3.12 per share.

Revenue of $69.6 billion was up 12.3% from $62.0 billion a year ago as bested analysts’ estimates of $68.81 billion.

This is the slowest growth since mid-2023.

But what really displeased Wall Street was Microsoft’s Cloud segment.

There, revenue rose 21% to $40 billion but missed expectations for $41.1 billion. Digging a little deeper, the company’s artificial intelligence spending seems to have weighed on margins, as the cloud unit margins decreased to 70%.

Wall Street wasn’t happy with those results, and the stock fell by roughly 6% on Thursday.

In fact, Microsoft began offering DeepSeek’s R1 model on Azure on Wednesday and noted that it will soon be available to run on Copilot+ PCs as well as the GPUs available on Windows.

Source: Investor Place

[winston]

not vested

4Q Earnings

On the surface, the software giant had a solid quarter.

Earnings and revenue both came in ahead of Wall Street's estimates and net income jumped more than 10% from the same quarter a year ago.

But investors seem to be focusing on the slower growth in Microsoft's Azure cloud business, which came in at 31% versus 33% in the prior quarter.

Microsoft's Chief Financial Officer ("CFO") Amy Hood also said the company expects 31% to 32% cloud-business growth this quarter, which indicates flat growth and is below Wall Street's expectation of 33.4%.

Microsoft shares fell 6% on Thursday as a result.

Source: Daily Wealth

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Bill Gates’s Foundation has given away $100bn but he says ‘I still have more to give’ | BBC News
https://m.youtube.com/watch?v=BgcmDJ8zZYk

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