Tag: Azure

Narcissist CEOs Drive Risky Corporate Behavior

Narcissist CEOs Drive Risky Corporate Behavior

CEOs that allow themselves to be ruled by ego and emotion, that need to see their name in news headlines ("Narcissist" CEOs as defined by Stanford Professor Charles O'Reilly), are more likely to take significant risks - including impulsive M&A transactions - at the expense of a thoughtful, long-term operating strategy. Stanford's O'Reilly has done … Continue reading Narcissist CEOs Drive Risky Corporate Behavior

Time to Spin-Off AWS, Azure and GCP

Time to Spin-Off AWS, Azure and GCP

Given Snowflake's rich valuation, it may be time for Alphabet, Amazon and Microsoft to spin-off GCP, AWS and Azure. Snowflake priced its IPO yesterday and the stock closed up 112% to $253.93 for a valuation of approximately $70 billion. Assuming calendar year 2020 revenue of $500 million implies a MV/Revenue multiple of 140x. The combination … Continue reading Time to Spin-Off AWS, Azure and GCP

The Tech Stock Speculation Era

The Tech Stock Speculation Era

When it comes to Technology stocks we are firmly in the Speculation Era. It is likely to stay that way for the near-term. October earnings calls may provide a bump in the road. Looming corporate tax increases will likely put an end to the bubble. The combination of Trump tax cuts and the recent fiscal … Continue reading The Tech Stock Speculation Era

Amazon’s AWS Unit Is Differentiating Via A “Verticalization” Strategy

Amazon’s AWS Unit Is Differentiating Via A “Verticalization” Strategy

Amazon's AWS cloud platform is by definition a "horizontal" offering. "Horizontal" in that it is industry agnostic. Beginning with the Automotive vertical, AWS is deploying a "verticalization" strategy that layers industry vertical capability on top of its core horizontal offering to differentiate from competitors. We wrote about AWS' relationship with VW last year. Today, Toyota … Continue reading Amazon’s AWS Unit Is Differentiating Via A “Verticalization” Strategy

Higher Corporate Income Tax Rates and Advanced Automation Are Coming

Higher Corporate Income Tax Rates and Advanced Automation Are Coming

Regardless of who wins November's general election we expect higher corporate income tax rates in 2021 or more likely 2022. Today's 21% U.S. corporate tax rate will likely climb back to 35% or higher should Trump win re-election or to 40-45% should Biden win the Presidency. We expect companies to control expenses as a result … Continue reading Higher Corporate Income Tax Rates and Advanced Automation Are Coming

Catching Up with CEORater’s 2019 Technology CEOs of the Year

Catching Up with CEORater’s 2019 Technology CEOs of the Year

Our 2019 Technology CEOs of the Year included Andy Florance of CoStar Group (tkr: CSGP), Lance Uggla of IHS Markit (tkr: INFO), Ajay Banga of Mastercard (tkr: MA), Satya Nadella of Microsoft (tkr: MSFT) and Bill Stone of SS&C Technologies (tkr: SSNC). The risk/reward ratio for the equity markets hasn't been this unfavorable since the … Continue reading Catching Up with CEORater’s 2019 Technology CEOs of the Year

Earnings Calls – A Keyword Analysis

Earnings Calls – A Keyword Analysis

We ran a Natural Language Processing ("NLP")-based analysis of earnings calls from this week. We captured keywords and phrases from 23 earnings calls. Our report is sorted alphabetically by ticker symbol. Access the free report HERE. This analysis may be customized to capture certain keywords and phrases for any text-based document. https://soundcloud.com/ceorater

Two Years of Digital Transformation in Two Months

Two Years of Digital Transformation in Two Months

"We’ve seen two years’ worth of digital transformation in two months. From remote teamwork and learning, to sales and customer service, to critical cloud infrastructure and security.." These were the words of Microsoft CEO Satya Nadella Wednesday night and made an impact on us more so than any other management commentary this earnings season. Nadella's … Continue reading Two Years of Digital Transformation in Two Months

History Repeats Itself and Often Rhymes

History Repeats Itself and Often Rhymes

We have seen this movie before. The economy is slowing. This Coronavirus-led slowdown feels much like 2003's SARS outbreak exacerbated by the social media echo chamber. When entering an economic slowdown investors would be wise to understand the level of exposure that portfolio holdings have to discretionary revenue. In Software & Services land this primarily … Continue reading History Repeats Itself and Often Rhymes

Not All Clouds Are Created Equal

Not All Clouds Are Created Equal

Alphabet shed some light on its cloud operations - "Google Cloud" - tonight after the close. It got us thinking about the three cloud platform providers that matter: AWS (Amazon), Azure (Microsoft) and GCP (Google/Alphabet). Click HERE to access a revenue breakdown for each of the big three. Our revenue comparison is not apples-to-apples. Microsoft … Continue reading Not All Clouds Are Created Equal