Microsoft (MSFT) / Bill Gates

[winston]

not vested

Microsoft shares hit high as cloud business flies above estimates

By Anya George Tharakan and Jeffrey Dastin

Microsoft Corp said sales of its flagship cloud product doubled in its first quarter, propelling earnings above analysts' estimates and sending its shares to an all-time high, breaking past a level hit in 1999 at the peak of the tech stock bubble.

The company's shares have doubled since August 2013 with Chief Executive Satya Nadella restoring investor confidence by focusing on mobile and cloud computing rather than PCs.

Long known for its Windows software, Microsoft has shifted focus to the cloud where it is dueling with larger rival Amazon.com Inc to control the still fledgling market. Its jump in revenue underscores how businesses around the world are turning to new applications in the cloud and leaving once critical software programs and other hardware in the dust.

Shares of Microsoft rose as much as 6.2 percent to $60.79 in after-hours trading. They later pared gains to $60.43, still adding nearly $25 billion to its market value.

The Redmond, Washington-based company said sales from its flagship cloud product Azure, which businesses can use to host their websites, apps or data, rose 116 percent. Revenue for its broader "Intelligent Cloud" business rose 8.3 percent to $6.38 billion, beating analysts' average estimate of $6.27 billion, according to research firm FactSet StreetAccount.

"We are not just building or moving (clients') IT," Nadella said on an analyst call. Customers "are building new digital services for hyper scale. And that's what is probably unique in terms of what has changed year over year for us.

"It's not just the Silicon Valley startups anymore; it is the core enterprise that is also becoming a digital company. And we are well-positioned to serve them," he said.

The company forecast that sales for its Intelligent Cloud business will be between $6.55 billion and $6.75 billion in the current quarter, compared with $6.34 billion in the same period a year earlier.

"There’s a huge runway for them to show growth," said Trip Chowdhry, managing director of Global Equities Research.

HEAD IN THE CLOUDS

Early investment in the cloud, coupled with machine learning and applications that can scale at different levels, have set Microsoft and Amazon Web Services apart from smaller rivals - and precipitated the decline of older software companies, Chowdhry said.

Microsoft had an effective monopoly on computing software in the 1990s and was for some time the world’s most valuable publicly traded company.

But its power waned in the 2000s after a bruising battle with the U.S. Department of Justice over how it used its monopoly power to squeeze competitors.

Co-founder Bill Gates stepped down as CEO early in 2000 and Microsoft spent the next decade and a half in a strategic dilemma as it clung to its PC-centric view of the computing world while it was outflanked by Google in the internet and Apple Inc in smartphones.

Earlier this year, Nadella made headlines when he orchestrated Microsoft's biggest-ever deal, agreeing in June to buy the social network for professionals LinkedIn Corp for $26.2 billion.

But the focus on mobile applications and the cloud's blockbuster growth masked dips in sales for other units of the company in the quarter.

ALSO IN TECHNOLOGY NEWS

New York governor approves new regulations on Airbnb
New NYC law, San Francisco lawsuit highlight global risks for Airbnb
Worldwide PC shipments fell 3.9 percent in the quarter ended Sept. 30, according to research firm IDC, although that was much less than the 7.1 percent it had previously estimated.

Revenue in the unit that includes Windows software and the company's struggling mobile business fell 1.8 percent to $9.29 billion. Microsoft forecast the division will have sales of up to $11.6 billion in the current quarter - well below the $12.7 billion it posted for the unit a year earlier.

The decline in Lumia smartphone sales was a "blemish," said Patrick Moorhead of Moor Insights & Strategy, albeit an expected one.

"At some point that Windows number needs to start to rise, but given market declines, it’s hard to expect that," he said.

Including deferred revenue from Windows 10, Microsoft earned 76 cents per share in the just-ended first fiscal quarter of 2017, beating analysts' average estimate of 68 cents, according to Thomson Reuters I/B/E/S.

On an adjusted basis, Microsoft reported revenue of $22.33 billion, above the average estimate of $21.71 billion.

Source: Reuters

http://www.reuters.com/article/us-micro ... y%20Report

[winston]

Software titan Microsoft soars to a fresh all-time high… up 20%-plus since late June.

[winston]

THIS TECH GIANT IS GROWING IN THE CLOUD

Today's chart puts the spotlight on one of the world's safest long-term investments...

Longtime readers know we're fans of the tech industry. Specifically, we like "Big Cheap Tech" stocks. These firms have been around for decades and have established businesses that generate steady sales and thick profit margins. But since they rarely make headlines, investors often pass over them in favor of more "exciting" opportunities.

One of these "boring" tech companies is software icon Microsoft (MSFT). Since appointing Satya Nadella as CEO in 2014, the company has focused on driving its cloud business. That work is starting to pay off...

Microsoft calls its cloud-services division "Azure." It offers more than 600 services, from data backup to app-development technologies. Last week, Microsoft's earnings handily beat analysts' estimates.

Azure revenue grew 116%, with data usage also doubling since this time last year. Its shares are now trading at a new all-time high. Add it to the list of reliable blue-chip businesses that continue to march higher...

Source: Daily Wealth

[winston]

How to Profit from the Next Generation of Defense Tech

By MICHAEL A. ROBINSON

The reason I like Microsoft so much is because it is already a major player with the U.S. government.

The U.S. Army, Navy, and Air Force already represent three of Microsoft's top five enterprise customers.

Microsoft builds a flight simulator that the armed forces use for training, for instance.

In civilian branches of government, Microsoft also has a very strong presence.

But the most interesting fact about Microsoft's competitive moat in the U.S. federal sector is the fact that while the military and civilian sectors account for about half of the company's federal revenue, the intelligence community makes up for more than half that federal enterprise revenue, acco

Source: Money Morning

http://moneymorning.com/2016/10/28/how- ... ense-tech/

[winston]

not vested

3 Reasons Why Microsoft Corporation (MSFT) Stock Is a Must-Have

The momentum in MSFT stock isn't going to stop anytime soon

By Tom Taulli

Microsoft is a major cash generator. In the latest quarter, GAAP operating income came to $5.2 billion on sales of $20.5 billion. Overall, there is a hefty $113 billion.

So yes, there is lots of firepower for investments and acquisitions. MSFT stock also has room for continued dividend increases. Currently, it sports a yield of about 2.6%.

Now the valuation for Microsoft stock is not necessarily cheap. The forward price-to-earnings multiple on MSFT stock is about 18.5.

Source: Investor Place

http://investorplace.com/2016/11/3-reas ... BsG0_l96M8

[winston]

not vested

This Isn’t Your Father’s Microsoft Corporation (MSFT) Stock

Ballmer's influence is long gone and MSFT stock has plenty of growth ahead

By Richard Band

It has severely cut its losses in the mobile phone arena, focusing on only a couple models in the next year so.

It has finally launched a good OS (Windows 10) that complements its long-term integration strategy.

It is killing its commercial cloud business.

And its new augmented reality HoloLens is still in development, but could be even bigger than virtual reality entertainment.

Source: Profitable Investing

http://investorplace.com/2016/11/msft-m ... B2-9Pl96M8

[winston]

not vested

After 15 Years, Microsoft Corporation (MSFT) Stock Is Cool Again

Heavy investment in the cloud is paying off big-time for Microsoft stock

By Dan Burrows

Source: Investor Place

http://investorplace.com/2016/11/msft-m ... CEvGPl96M8

[winston]

not vested

Microsoft Corporation (MSFT) Gets in Bed With the Enemy

Microsoft and Linux? Yes. And it's a match made in heaven for MSFT stock.

By Aaron Levitt

Source: Investor Place

http://investorplace.com/2016/11/micros ... D5Kvvl96M9

[winston]

not vested

Tech Stocks to Buy: Microsoft (MSFT)

by Mike Mozart

During the past couple years, Microsoft Corporation (NASDAQ:MSFT) has gotten its mojo back. More importantly, it looks like the momentum should continue for some time.

The leadership of CEO Satya Nadella has been critical. Part of this has been his willingness to make tough decisions, such as dumping the disastrous Nokia Corp (ADR) (NYSE:NOK) acquisition. But he has also doubled down on the cloud market.

Nadella was savvy to leverage core advantages of MSFT, such as the trusted brand, global infrastructure and portfolio of mission-critical technologies. He has also made gutsy acquisitions, like the $26.2 deal for LinkedIn Corp (NYSE:LNKD) (the company has a user base of 467 million).

As a result, Microsoft is now the No. 2 player the market, with about 11% market share. This compares to Amazon’s 31%.

But there may be another interesting benefit for MSFT — and it could come next year. Trump appears serious about providing tax breaks to encourage companies to repatriate their cash to the U.S. While Apple Inc. (NASDAQ:AAPL) is always the first company discussed when it comes to this phenomenon, Microsoft has a hefty $113 billion in foreign accounts.

If it suddenly can bring a bunch of that back with a smaller tax hit, MSFT will have more firepower for M&A, share buybacks and larger dividend payouts.

Source: Investor Place

[winston]

not vested

Microsoft Corporation (MSFT) Stock Wins $927M Contract from Department of Defense

MSFT stock should see a boost to long-term growth thanks to the DOD

Source: Zacks Investment Research

http://investorplace.com/2016/12/micros ... GG5v_l96M8