Microsoft (MSFT) / Bill Gates

Re: Microsoft (MSFT) / Bill Gates

Postby winston » Mon Aug 26, 2019 9:39 am

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RECOMMENDATION

We have a TECHNICAL BUY rating for MSFT.

MSFT is currently trading at a P/E ratio of 29.0, which is above its one standard deviation.

However, we think MSFT’s PE multiple is justified given it's strong position as the leading vendor in the cloud category and robust organic growth.

Source: Phillips

https://internetfileserver.phillip.com. ... 2019_2.pdf
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Re: Microsoft (MSFT) / Bill Gates

Postby winston » Mon Aug 26, 2019 5:10 pm

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Microsoft (MSFT)

Microsoft refused to give up its no. 1 position in the second quarter. It remains the most popular hedge fund stock- despite a sizable decline in the number of funds owning the stock (for the second quarter in a row).

Indeed, RBC Capital reveals that hedge funds still hold a whopping $18,131 million of Microsoft shares. That’s with 29% of the 363 funds that it examined holding MSFT stock.

Luckily for these funds MSFT scores a firm ‘Strong Buy’ analyst consensus. That's with a $154 average price target (15% upside potential). Out of 24 analysts covering MSFT right now, 22 are bullish with only 1 hold rating and 1 sell rating (from long time MSFT bear Jefferies' John Difucci).

“We maintain a bullish stance on MSFT as one of our top cloud ideas to own in 2019 based on a multiyear transformation of the model driven by commercial cloud revenue that could reach $100B in CY23 from a $44B run-rate today” celebrated KeyBanc analyst Brent Bracelin after the company reported a solid revenue beat on commercial cloud growth of 39% y/y.

Aptly calling his report ‘On Cloud Nine’, the analyst reiterated his MSFT buy rating while ramping up the price target from $143 to $155. Fiscal 4Q19 results impressed as it sustained double-digit growth for the eighth consecutive quarter, despite a material two-point FX headwind, summed up Bracelin.

Source: Tip Ranks
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Re: Microsoft (MSFT) / Bill Gates

Postby winston » Thu Aug 29, 2019 1:55 pm

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Microsoft Corp (MSFT)

First, Goldman Sachs instructs investors to prioritize service-providing stocks over good-producing companies.

“Services stocks have less exposure to trade conflict given they have lower foreign input costs that might be subject to tariffs and lower non-US sales than Goods firms,” explains Kostin.

He continues “Stronger services inflation should also benefit those firms relative to Goods firms. However, the relative valuation of Services vs. Goods is slightly elevated vs. history.”

A prime example of a ‘Strong Buy’ rated services stock is, of course, Microsoft. The world’s largest software company has scored 22 recent buy ratings from analysts vs just 1 hold rating and 1 sell rating. Their average price target works out at $154 (15% upside potential).

Credit Suisse analyst Brad Zelnick is very positive on MSFT. After the company reported stellar Q2 earnings, revealing strong cloud momentum, the analyst reiterated his buy rating and $155 price target.

He wrote: “We maintain a bullish stance on MSFT as one of our top cloud ideas to own in 2019 based on a multiyear transformation of the model driven by commercial cloud revenue that could reach $100B in CY23 from a $44B run-rate today.”

Source: Tip Ranks
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Re: Microsoft (MSFT) / Bill Gates

Postby winston » Fri Oct 25, 2019 7:55 am

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Cloud lifts Microsoft earnings to US$10.7b

Super Phoenix, or Suphx in short the AI system that has mastered the intricacies of one of the most complex board games.

Microsoft on Wednesday reported its latest solid quarterly report card to Wall Street, buoyed by another round of business customers signing up for its cloud computing services.

The company reported fiscal first-quarter profit of US$10.7 billion, up by 21 percent from the same period last year.

The net income of US$1.38 per share beat Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of US$1.25 per share.

The software maker posted revenue of US$33.1 billion in the July-September period, up by 14 percent from last year and also beating forecasts. Ten analysts surveyed by Zacks expected US$32.2 billion.

Microsoft shares have risen by 35 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen by 20 percent.

In the final minutes of trading on Wednesday, shares hit US$137.11, an increase of 27 percent in the last 12 months. It’s been dueling with Apple this season as the most valuable company in the S&P 500.

Microsoft chief executive Satya Nadella has been rewarded for his efforts in steadily lifting the company’s earnings since taking over in 2014. His compensation was US$42.9 million in the fiscal year that ended in June, a 66 percent raise over the previous year, according to a statement filed last week ahead of the company’s annual shareholder meeting in December.

That included a US$1 million base salary increase, which the board said it awarded because of “his significant contributions to Microsoft’s success during his tenure as CEO” and a desire to encourage his “continued strong leadership.”

The strongest sales growth has come from adding new corporate and government clients to Microsoft’s Azure cloud computing platform. Azure’s quarterly revenue grew by 59 percent from the same time last year, much of that powered by contracts worth at least US$10 million each, the company said.

A less profitable part of Microsoft’s business has been its consumer products, such as Xbox, which saw no revenue growth in the quarter, and Surface laptops, which declined by 4 percent. The Surface team, though a small part of Microsoft’s business, launched a new line of devices this fall and expects demand to pick up during the holiday season.

Source: AP

http://www.thestandard.com.hk/breaking- ... 1024&sid=2
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Re: Microsoft (MSFT) / Bill Gates

Postby winston » Fri Oct 25, 2019 7:55 am

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Cloud lifts Microsoft earnings to US$10.7b

Super Phoenix, or Suphx in short the AI system that has mastered the intricacies of one of the most complex board games.

Microsoft on Wednesday reported its latest solid quarterly report card to Wall Street, buoyed by another round of business customers signing up for its cloud computing services.

The company reported fiscal first-quarter profit of US$10.7 billion, up by 21 percent from the same period last year.

The net income of US$1.38 per share beat Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of US$1.25 per share.

The software maker posted revenue of US$33.1 billion in the July-September period, up by 14 percent from last year and also beating forecasts. Ten analysts surveyed by Zacks expected US$32.2 billion.

Microsoft shares have risen by 35 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen by 20 percent.

In the final minutes of trading on Wednesday, shares hit US$137.11, an increase of 27 percent in the last 12 months. It’s been dueling with Apple this season as the most valuable company in the S&P 500.

Microsoft chief executive Satya Nadella has been rewarded for his efforts in steadily lifting the company’s earnings since taking over in 2014. His compensation was US$42.9 million in the fiscal year that ended in June, a 66 percent raise over the previous year, according to a statement filed last week ahead of the company’s annual shareholder meeting in December.

That included a US$1 million base salary increase, which the board said it awarded because of “his significant contributions to Microsoft’s success during his tenure as CEO” and a desire to encourage his “continued strong leadership.”

The strongest sales growth has come from adding new corporate and government clients to Microsoft’s Azure cloud computing platform. Azure’s quarterly revenue grew by 59 percent from the same time last year, much of that powered by contracts worth at least US$10 million each, the company said.

A less profitable part of Microsoft’s business has been its consumer products, such as Xbox, which saw no revenue growth in the quarter, and Surface laptops, which declined by 4 percent. The Surface team, though a small part of Microsoft’s business, launched a new line of devices this fall and expects demand to pick up during the holiday season.

Source: AP

http://www.thestandard.com.hk/breaking- ... 1024&sid=2
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Re: Microsoft (MSFT) / Bill Gates

Postby winston » Mon Oct 28, 2019 8:24 am

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Microsoft to expand Pentagon ties with US$10bil JEDI contract

WASHINGTON: Microsoft Corp. said it’s seeking to expand its partnership with the Pentagon after winning the sought-after JEDI cloud computing contract valued at as much as $10 billion over a decade, dealing a blow to the market leader Amazon.com Inc.

The decision, which was announced by the Defense Department late Friday, may be challenged by Amazon, which was the front-runner, according to a person familiar with the matter, because President Donald Trump weighed in on the bidding process. The terms of the competition were also hotly contested by another rival, Oracle Corp.

The Pentagon has said the cloud project, known as the Joint Enterprise Defense Infrastructure, or JEDI, is intended to help bring American military technology into the modern era.

The Pentagon said the contract was expected to be completed by 2029. Microsoft shares rose 0.6% to $140.73 at Friday’s close.

Amazon, which won a lucrative cloud contract with the Central Intelligence Agency in 2013, was long seen to have the upper hand in the competition. But politics entered the picture. Trump has long been at odds with Amazon’s Chief Executive Officer Jeff Bezos. Bezos also owns the Washington Post, which Trump claims has treated him unfairly in its coverage

A new book by Guy Snodgrass, a speechwriter to former Defense Secretary Jim Mattis, alleges that Trump, in the summer of 2018, told Mattis to "screw Amazon” and lock it out of the bid. Mattis didn’t do what Trump asked, Snodgrass wrote. Mattis has criticized the book.

Amazon was believed to be the front-runner until Friday evening.

"This is a paradigm changer for Microsoft, ” said Daniel Ives, an analyst at Wedbush Securities who has a "buy” rating on Microsoft. "It’s a landmark win that will change the cloud computing battle over the next decade. It’s a shocker to Amazon and Bezos to lose it. But for Microsoft it signals a new era of growth in cloud. This adds $10 to the stock in my opinion.”

Source: Bloomberg

https://www.thestar.com.my/business/bus ... UGfEOeI.99
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Re: Microsoft (MSFT) / Bill Gates

Postby winston » Mon Nov 04, 2019 2:31 pm

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CEO Satya Nadella took over in 2014 and successfully moved the company's focus from traditional software sales to a subscription-based recurring revenue model.

Microsoft also has made big inroads in cloud-based services. It's not easy for a megacap like Microsoft to pivot to new markets. But the Dow component is doing it successfully, with low double-digit annual earnings growth expected in 2019 and 2020.

The company reported fiscal first-quarter results on Oct. 23. Adjusted profit rose 21% from the year-ago quarter to $1.38 a share. Sales increased 14% to $33.06 billion, helped by a 36% increase in commercial cloud sales to $11.6 billion. The Zacks consensus estimate was for adjusted profit of $1.25 a share and sales of $32.23 billion.

Revenue at Microsoft's Azure public cloud business rose 59%, down from 76% growth in the year-ago quarter. But revenue from Windows commercial products and cloud services increased 26%, nice acceleration from 12% growth in the year-ago quarter.

Microsoft is holding near highs after the stock gapped up bullishly on Oct. 28. Shares were strong after the Pentagon awarded its Joint Enterprise Defense Infrastructure (JEDI) contract to Microsoft, worth up to $10 billion over 10 years. The contract was a big win for Microsoft as it competes with Amazon.com (AMZN) in the lucrative field of enterprise cloud computing.

Chart-wise, Microsoft is still well within the 5% buy zone after a breakout from a flat base with a 142.47 entry.

Composite Rating: 95 (scale of 1-99 with 99 being the best)
Latest-quarter EPS % change: +21%
Latest-quarter sales % change: +12%
Three-year annualized EPS growth rate: +17%
Annual return on equity: 39.8%
Annual pretax profit margin: 34.7%

Source: IBD
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Re: Microsoft (MSFT) / Bill Gates

Postby winston » Tue Feb 04, 2020 8:20 am

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Microsoft MSFT

Microsoft is another one of the firms in the exclusive $1 trillion market cap club that wowed Wall Street earlier this week. MSFT crushed our bottom-line estimate by over 10% for the fourth straight period and its revenue surged 14%.

The company’s sales growth was driven by 27% expansion in its Intelligent Cloud unit and 39% expansion in Commercial Cloud. Its Office-heavy Productivity and Business Processes unit also surged 17%.

Like Apple, MSFT earns a Zacks Rank #2 (Buy) after analysts quickly raised their bottom-line estimates for fiscal 2020 and 2021. Microsoft also sports a “B” grade for Growth and an “A” for Momentum in our Style Scores system.

MSFT’s adjusted earnings are now projected to surge 16.6% and 12.1%, respectively, in FY20 and FY21. On top of that, its full-year sales are set to jump 12.6% and 11.4% during this same stretch

Microsoft is a stock that could help investors weather a possible virus-based pullback. Last fall, MSFT executives announced that they raised the firm’s dividend by 11% and approved a new share repurchase program.

The company is also part of an industry that rests in the top 21% of our more than 250 Zacks industries, which is often helpful. And MSFT is poised to expand its legacy businesses, including a new next-generation gaming push, as it challenges Amazon for cloud supremacy.

Source: Motley Fool
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Re: Microsoft (MSFT) / Bill Gates

Postby winston » Thu Feb 20, 2020 9:37 pm

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Microsoft (MSFT)

The tech sector is another tricky area to place bets, especially as coronavirus worries loom over much of the sector. However, Microsoft (NASDAQ:MSFT) looks like a good bet in that industry because the firm is positioned for strong growth in the years ahead.

Goldman Sachs strategy Ryan Hammond, says the tech sector as a whole is well-positioned for growth. However, he warns that investors should look to software and services over hardware. Why? Because they tend to perform better in low interest rate environments, according to Hammond.

Furthermore, Microsoft’s ever-growing cloud arm is one of the main reasons to add the stock to your portfolio.

And while Amazon (NASDAQ: AMZN) has challenged Microsoft’s Department of Defense contract win, it’s likely to go forward if Donald Trump remains in office.

This, along with other catalysts, make MSFT another great stock to buy.

Source: Daily Trade Alert
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Re: Microsoft (MSFT) / Bill Gates

Postby winston » Wed Feb 26, 2020 10:28 pm

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Microsoft

This legacy technology leader has a massive $133.8 billion sitting on the balance sheet.

Microsoft Inc. (NASDAQ: MSFT) manufactures, licenses and supports a wide range of software products. The company has transformed its business model from a component-driven model (PC, server) to one driven by the need for cloud capacity. It is also considered one of the best companies to work for.

Many Wall Street analysts agree that Microsoft has become a clear number two in the public or hyper-scale cloud infrastructure market with Azure, which is the company’s cloud computing platform offerings, and which continues growing at triple-digit levels. Some have flagged Azure as the biggest rival to Amazon’s AWS service.

Microsoft reported strong fiscal second-quarter results across the board, with Azure accelerating to an impressive 64% year-over-year growth rate from 63% last quarter. Total revenue growth was 15%, and management guided double-digit revenue growth and 2% of operating margin expansion in fiscal 2020.

The analysts see strong visibility into double-digit percentage revenue growth, supported by multiple drivers (Intelligent Cloud, Productivity & Business Processes) and secular trends for the foreseeable future.

Shareholders receive a 1.5% dividend. The Merrill Lynch price target is $200. The consensus price objective is $194.19, and Microsoft stock closed Tuesday at $168.07.

Source: 24/7 Wall St
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