Microsoft (MSFT) / Bill Gates

[winston]

not vested

Microsoft Corporation (MSFT US) - Weaker near-term outlook but remains a solid long-term investment thesis

Microsoft Corporation (MSFT, stock code: MSFT US) is a multinational technology that was founded in 1975 and has gone on to become one of the largest and most successful companies in the world.

Our key thesis for MSFT is that it is a SWAN (Sleep-Well-At-Night) stock for the long-term investor, with a strong balance sheet, high recurring cash flows, and relatively stable but higher-than-market growth rates.

Under the current CEO, the company has also consistently been able to balance between cash flow generation and reinvestment into growth opportunities via research and development (R&D), thoughtful acquisitions and investments.

Mature personal computer (PC) and office productivity products drive strong cash flow generation which are reinvested into growth drivers such as cloud computing and AI, paving the way for sustainable stronger growth rates into the future.

We remain confident that MSFT could generate a low to high-teens revenue and earnings CAGR over the subsequent 3-5 years. BUY.

Source: OCBC

[behappyalways]

Microsoft Drops Despite Solid Q2 Earnings Beat As Attention Turns To Slowing Cloud Growth
https://www.zerohedge.com/markets/micro ... oud-growth


MSFT conf call mentions of AI:
https://twitter.com/zerohedge/status/16 ... 1187182592

[winston]

not vested

Microsoft Corp - Stabilizing cloud spending
Recommendation: ACCUMULATE (Upgraded); TP: US$372.00

FY23 revenue/PATMI was in line with expectations at 100%/101% of our forecasts.

In 4Q23, total revenue grew by 8% YoY driven by a 15% YoY rise in intelligent cloud business. PATMI rose by 20% YoY due to higher operating leverage.

For 1Q24e, Microsoft expects total revenue to grow by 8% YoY to US$54.3bn driven by corporate cloud-computing demand.

Microsoft’s implied operating margin for 1Q24e is 44%.

Microsoft plans to charge US$30 per user per month for its Office 365 Copilot AI tools.

We upgrade to ACCUMULATE with a raised DCF target price of US$372.00 (prev. US$328.00) using a WACC of 7.2% and terminal growth rate of 4%.

We are raising our target price as we increased our growth rate assumptions.

Microsoft enjoys long-term tailwinds from shifting workloads to the cloud, demand for its AI-enabled products, and cybersecurity upgrades.

Source: Phillips

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

[behappyalways]

Microsoft Must Pay $28.9 Billion In Back-Taxes
https://www.zerohedge.com/markets/micro ... back-taxes

[winston]

not vested

The IRS says Microsoft may owe about $29 billion in back taxes. Microsoft disagrees

Source: AP

https://finance.yahoo.com/news/irs-says ... 00484.html

[behappyalways]

Microsoft Completes Takeover Of Activision Blizzard
https://www.zerohedge.com/technology/uk ... ision-deal

[behappyalways]

The UK is ready! Microsoft buys Activision Blizzard for 69 billion, officially completing the acquisition

英國准! 微軟690億買動視暴雪 正式完成收購｜方念華｜FOCUS全球新聞 20231016@tvbsfocus

https://m.youtube.com/watch?v=OBBuvY6dJ4I

[winston]

not vested

Microsoft reported Tuesday fiscal first-quarter results that beat Wall Street estimates, as the tech giant's investment in artificial intelligence bolstered growth in its cloud business Azure.

The company announced earnings per share of US$2.99 on revenue of US$56.52B.

Analysts anticipated EPS of US$2.65 on revenue of US$54.53B.

With respect to guidance, Amy Hood, Microsoft’s finance chief, called for fiscal second-quarter revenue in the range of US$60.4B to US$61.4B on a conference call with analysts that implies 15% growth. Analysts had expected US$60.9B in revenue.

Revenue grew almost 13% year over year in the quarter from US$50.12B in the year-ago quarter, according to a statement.

Net income, at US$22.29B, increased 27% from US$17.56B, or US$2.35 per share in the same quarter a year ago.

Microsoft’s Intelligent Cloud segment produced US$24.26B in revenue, up 19% and above the US$23.49B consensus.

Revenue just from Azure jumped 29% during the quarter, faster than the 26% consensus.
Microsoft doesn’t disclose Azure revenue in dollars. At constant currency, Azure revenue rose 28%, accelerating from 27% in the fiscal fourth quarter.

For the second half of the 2024 fiscal year, Hood said to expect Azure growth in constant currency to remain stable compared with the fiscal second quarter, which should come in at 26% to 27%.

The Productivity and Business Processes unit posted US$18.59B in revenue, which was up 13% and more than consensus of US$18.19B.

Source: Phillips

[winston]

not vested

Microsoft Corporation - Stock Analyst Research
Target Price* 375.00
Recommendation ACCUMULATE

Microsoft Corp - Azure growth re-accelerates

1Q24 revenue/PATMI was in line with expectation at 24%/26% of our FY24e forecasts.

Total revenue grew 13% YoY as Azure growth re-accelerated to 29% YoY.

PATMI rose by 27% YoY due to higher operating leverage.

For 2Q24e, Microsoft expects total revenue to grow 15% YoY to US$60.9bn driven by corporate cloud-computing demand and increase in gaming revenue.

Management reiterated its expectation of flat operating margins for FY24e (~42%) despite absorbing Activision Blizzard.

Office 365 Copilot AI tools (US$30 per user per month) to commercially launch on Nov. 1.

We maintain ACCUMULATE recommendation and nudge our DCF target price to US$375.00 (prev. US$372.00) using a WACC of 7.2% and terminal growth rate of 4%.

Our FY24e revenue/PATMI is increased by 2%/0.4% to account for Activision acquisition and continuation of AI tailwinds.

Microsoft is well-positioned to benefit from shifting workloads to the cloud, demand for its AI-enabled products, and cybersecurity upgrades.

Source: Phillips

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

[behappyalways]

Microsoft has the most diversified business model of the Magnificent 7
https://twitter.com/Mayhem4Markets/stat ... 4771338285