Microsoft (MSFT) / Bill Gates 02 (Apr 18 - Dec 27)

[winston]

Microsoft drops amid slowing cloud growth, record spending

By Matt Day & Brody Ford

Spending surged to a record high and cloud sales growth slowed, sending the shares down sharply amid investor concerns that it could take longer than expected

Capital expenditures for the fiscal second quarter hit US$37.5 billion, up 66% from a year earlier and exceeding analyst estimates for US$36.2 billion.

Azure cloud-computing unit posted a 38% revenue gain.

Total sales increased 17% to US$81.3 billion during the quarter, while profit was US$5.16 a share.

Source: Bloomberg

https://theedgemalaysia.com/node/791054

[winston]

not vested

Microsoft Corporation - Stock Analyst Research
Target Price* 540.00
Recommendation BUY

Microsoft Corp – Prioritising Azure amid supply shortages

2Q26 revenue met our expectations with revenue/adj.

PATMI was at 50%/51% of our FY26e forecasts.

Revenue grew 17% YoY driven by 40% YoY growth in Azure cloud revenue. Adj. PATMI rose 23% YoY to US$30.9bn, driven by higher operating leverage.

For 3Q26e, Microsoft expects revenue to rise 16% YoY to US$81.2bn, driven by continued strong growth across commercial businesses.

Azure is projected to grow 37%, as the company continues to prioritise supply amid demand exceeding capacity.

Commercial RPO rose 110% YoY to US$625bn and are expected to be recognised over the next 2.5 years.

We upgrade our recommendation to BUY from ACCUMULATE with an unchanged DCF target price of US$540, due to recent price performance.

There are no changes to our forecast.

The company is currently valued at a blended forward PE of 23.9x, below the -1 standard deviation of 27.2x.

Source: Phillips

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

[winston]

not vested

Microsoft Corporation (MSFT): A Bull Case Theory

by Ricardo Pillai

Total revenue rising 18% year-over-year to $77.7 billion, operating income up 24% to $38.0 billion, and GAAP net income of $27.7 billion, or $3.72 per share.

Microsoft Cloud, encompassing Azure, Office 365, and Dynamics 365, grew 26% to $49.1 billion.

Source: Insider Monkey

https://finance.yahoo.com/news/microsof ... 07326.html

[winston]

vested

I Just Bought the Dip on Microsoft Stock. Here Are 4 Reasons Why You Should Follow

by Keithen Drury

1. Azure is the star of the show
Azure's revenue grew 39% year over year

2. Microsoft is the only way to gain exposure to OpenAI
Microsoft has a 27% ownership stake

3. Microsoft's business was strong companywide
Productivity and Business Processes division, which encompasses most of the software utilized for businesses, experienced 16% growth.
Consumer cloud revenue rose 29%, and Dynamics 365 increased by 19%

4. Microsoft's stock trades at a great price tag

Source: TMF

https://finance.yahoo.com/news/just-bou ... 00442.html

[winston]

vested

Melius Research Downgrades Microsoft Corporation (MSFT) Stock to Hold

by Bob Karr

The company’s FCF can be impacted because it needs to increase its capex requirements to compete with Google and Amazon, as Microsoft Corporation (NASDAQ:MSFT)’s 365 business is exposed to threats from AI.

Given the firm’s new FCF estimates, Microsoft Corporation (NASDAQ:MSFT)’s shares are very expensive.

Source: Insider Monkey

https://finance.yahoo.com/news/melius-r ... 39830.html

[behappyalways]

Microsoft Freezes Hiring In Cloud And Sales As Stock Suffers Worst Start To Year On Record
https://www.zerohedge.com/markets/micro ... rt-dot-com

[winston]

not vested

Microsoft Targets Trimmed: What It Means for Investors

by Chris Markoch


Key Points

Multiple analysts lowered Microsoft price targets but kept bullish ratings intact.

Slowing Azure growth and rising AI CapEx remain the biggest investor concerns.

MSFT’s valuation has normalized, potentially creating a long-term buying opportunity.

Source: Market Beat

[winston]

not vested

Microsoft Corporation (MSFT.US) FY Capex Reaches USD190B, AI Annualized Revenue Expected at USD37B

Microsoft Corporation (MSFT.US) reported adjusted EPS of USD4.27 for its third fiscal quarter ended March, above market expectations of USD4.06.

The company announced that its capital expenditure for the fiscal year reached as high as USD190 billion, exceeding expectations, of which USD25 billion was attributable to rising costs of chips and other components.

Chief Financial Officer Amy Hood said the company remains confident in the returns on these investments due to growing demand and increased product usage.

Vice President of Investor Relations Jonathan Neilson added that the number of users for the USD 30-per-month M365 Copilot AI increased from 15 million disclosed in January to 20 million.

Although Copilot's user base remains small relative to Microsoft's overall user base, Chief Executive Officer Satya Nadella said users are utilizing Copilot as frequently each week as they use Outlook.

Microsoft also stated that its AI business has annualized revenue of USD37 billion. This figure is expected to include revenue over the next year from selling infrastructure to third parties such as OpenAI, as well as revenue from sales of its own AI products.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

CMBI Slightly Raises Microsoft Corporation (MSFT.US) TP to USD616.4, Maintains Buy Rating

CMBI released a research report stating that Microsoft Corporation (MSFT.US) delivered strong results for 3QFY2026 (ended June), with total revenue reaching USD82.9 billion, up 18.3% YoY and 2% above market expectations.

Revenue from all three major business segments exceeded expectations.

Operating profit rose 20% YoY to USD38.4 billion, 3% to 4% above market forecasts, mainly driven by better-than-expected performance in Productivity and Business Processes (PBP) and More Personal Computing (MPC).

The report noted that Azure and other cloud services revenue grew 40% (up 39% at constant exchange rates), exceeding prior guidance of 37% to 38%. Management expects revenue growth of 39% to 40% in 4QFY2026.

Management emphasized that GitHub Copilot has shifted to a usage-based billing model, enabling pricing to better align with actual usage and costs.

It also expects that all businesses currently charged based on user count will gradually transition to a "per-user + usage-based" pricing model.

CMBI believes this model could further unlock commercialization potential and ease market concerns going forward.

CMBI maintained its revenue and operating profit forecasts for FY2026 to FY2028 largely unchanged.

Based on a discounted cash flow model, the TP was slightly raised to USD616.4 (from USD614.6), implying 31.5x FY2027 forecast PE.

The Buy rating is maintained.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[behappyalways]

How
$MSFT
makes money
https://x.com/Mayhem4Markets/status/2050039586529624360