Microsoft (MSFT) / Bill Gates

[behappyalways]

Major personnel reshuffle! OpenAI founder "will not return" and confirms joining Microsoft

人事大洗牌! OpenAI創辦人「不回鍋」 確定加入微軟｜方念華｜FOCUS全球新聞 20231120@tvbsfocus
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ttps://m.youtube.com/watch?v=0VIV5EYxAXI

[winston]

not vested

Microsoft shares moved 2% lower in extended trading on Tuesday after the software maker issued fiscal second-quarter results that outdid analysts’ estimates.

Microsoft’s revenue increased 17.6% year over year in the year, which ended on Dec. 31, according to a statement.

Net income, at $21.87 billion, or $2.93 per share, increased from $16.43 billion, or $2.20 per share.

The company’s Intelligent Cloud segment produced $25.88 billion in revenue, up 20% and above the $25.29 billion consensus among analysts surveyed by StreetAccount.

Within that segment, revenue from Azure and other cloud services grew 30%.

Analysts polled by CNBC had expected 27.7% growth, and the StreetAccount consensus was 27.5%. The metric for the previous quarter was 29%.

Source: Phillips

[winston]

not vested

Microsoft Corporation - Stock Analyst Research
Target Price* 450.00
Recommendation ACCUMULATE

Microsoft Corp - AI demand boost cloud revenue

2Q24 revenue was in line with our expectation, while earnings exceeded.

1H24 revenue/PATMI was at 49%/53% of our FY24e forecasts.

2Q24 revenue grew 18% YoY driven by a robust 28% YoY growth in Azure cloud revenue. PATMI rose by 33% YoY to US$21.9bn due to higher operating leverage.

For 3Q24e, Microsoft expects total revenue to grow by 15% YoY to US$60.5bn fueled by Azure revenue growth of 28% YoY and Office 365 Commercial revenue growth of 15% YoY.

Microsoft’s implied operating margin for 3Q24e is ~43%.

We maintain our ACCUMULATE recommendation with an increased DCF target price of US$450.00 (prev. US$375.00), with an unchanged WACC of 7.2%, and an increased terminal growth rate of 4.5% (prev. 4%).

We believe that the growing demand for large AI models could help attract customers to Microsoft’s Azure platform for storage and computing solutions.

Also, strong adoption of Office 365 AI tools could provide incremental revenue growth opportunities.

Our FY24e revenue/PATMI has been increased by 1%/3% to account for the continuation of AI tailwinds and lower OPEX.

Source: Phillips

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

[winston]

not vested

Microsoft Corporation (MSFT) – Tuesday, January 30

Microsoft released its earnings report for its second quarter in fiscal year 2024 after the closing bell on Tuesday.

The company reported earnings of $2.93 per share on revenue of $62.02 billion, up from $2.35 per share and $50.12 billion.

This translates to 33.2% year-over-year earnings growth and 17.6% year-over-year revenue growth.

Analysts anticipated $2.77 per share earnings on revenue of $61.13 billion, so the company posted a 5.8% and a 1.5% revenue surprise.

Now, one of Microsoft’s most closely watched divisions is its Intelligent Cloud platform. Cloud revenue increased 20% year-over-year to $25.9 billion. This also topped analysts’ expectations for $25.3 billion.

During the earnings call, Microsoft CEO Satya Nadella noted:

We’ve moved from talking about AI to applying AI at scale. By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector.

The company also provided forward-looking guidance for the second quarter. Company management anticipates revenue between $60.4 billion and $61.4 billion. Analysts had estimated second-quarter revenue of $60.9 billion.

Additionally, Microsoft forecast operating expenses of $15.8 to $15.9 billion in the current quarter, up from $15.4 billion in the previous one. This, coupled with the cloudy outlook for the company, weighed on investors as they digested the news.

So, even though Microsoft reported its highest profit growth in more than two years, this “light” guidance disappointed Wall Street, and the stock dropped by 2.3% on Wednesday.

Source: Market 360

[behappyalways]

How $MSFT makes money
https://twitter.com/Mayhem4Markets/stat ... 5535951209

[behappyalways]

Microsoft OpenAI Chatbot Suggests Suicide, Other 'Bizarre, Harmful' Responses
https://www.zerohedge.com/technology/mi ... -responses

[winston]

not vested

Is an exit from gaming console market on the cards?

Microsoft Inc (MSFT) plans to release Xbox-exclusive games (so far) on rival platforms, focusing on cloud-based gaming.

Licensing these titles is expected to increase user-base and revenue, offsetting a potential decline in Xbox sales.

As Xbox hardware sales are not a significant profit driver, MSFT aims for an overall positive impact on revenues and profitability.

TP: US$465

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=18521

[winston]

not vested

1Q Earnings

Microsoft: How much lift can AI give Microsoft’s cloud?

Microsoft’s Azure business grew 30% year-on-year in the final quarter of 2023.

Six percentage points of that growth came from demand for AI, the company said, noting that it was double the rate in the previous quarter.

The AI boost likely won’t double again to reach 12% this quarter — but it will be interesting to see if AI continues to juice customer cloud demand or if last quarter’s 6% pop was just a blip that levels out this quarter.

Source: Fortune

[winston]

not vested

Microsoft Corporation (MSFT) – 1Q Earnings

Shares of Microsoft Corporation (MSFT) popped in after-hours trading on Thursday following the company’s better-than-expected quarterly report.

The fact is the company’s cloud business drove results in the most recent quarter, with cloud revenue up 23% year-over-year to $35.1 billion.

For the third quarter in fiscal year 2024, Microsoft achieved total revenue of $61.9 billion and earnings of $21.9 billion, or $2.94 per share. That represented 17% year-over-year revenue growth and 20% year-over-year earnings growth.

The analyst community expected third-quarter earnings of $2.82 per share and revenue of $60.8 billion, so Microsoft posted a slight earnings and revenue beat.

I should note one interesting thing about Microsoft’s earnings, which is that they seem to be gaining momentum in monetizing their AI software efforts.

The company began reporting AI services revenue from its Azure and cloud services in the fourth quarter of fiscal 2023. Back then, it contributed to 1% of growth in the division’s revenue. In the first quarter of fiscal 2024, it contributed 3%; the second quarter saw 6% growth.

And in the most recent report, AI services contributed 7% of growth in the division.

Looking forward, Microsoft called for $64 billion in revenue for the fiscal fourth quarter. This falls just below the $64.5 billion expected by analysts. Shares of MSFT were up about 3% in morning trading on Friday.

Source: Investor Place

[winston]

not vested

Microsoft Corporation - Stock Analyst Research
Target Price* 465.00
Recommendation ACCUMULATE

Microsoft Corp - Azure strength fuels revenue growth

9M24 revenue/PATMI was in line with expectations at 74%/77% of our FY24e forecasts.

3Q24 revenue growth of 17% YoY was supported by strength in cloud computing business Azure.

PATMI rose by 20% YoY to US$21.9bn due to higher operating leverage.

For 4Q24e, Microsoft expects total revenue to grow by 14% YoY to US$64bn fueled by Azure revenue growth of 31% YoY and Office 365 Commercial revenue growth of 14% YoY. Microsoft’s implied operating margin for 4Q24e is ~42%.

We maintain ACCUMULATE recommendation but raise our DCF target price to US$465.00 (prev. US$450.00), with an unchanged WACC of 7.2% and terminal growth rate of 4.5%.

Our FY24e revenue estimates remain unchanged, while we increased our PATMI by 2% to account for lower expenses.

We believe that the growing demand for large AI models could help attract customers to Microsoft’s Azure platform for storage and computing solutions.

Source: Phillips

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