Operating at the Intersection of Technology and the Capital Markets
Tag: Microsoft
A key reason why I wrote yesterday that a Disney (DIS) sale would not be announced until the end of 2024 or in 2025 is that Disney has to be thinking about the Biden Administration's FTC head Lina Khan blocking a potential deal, whether it be for pieces of Disney such as ABC, or for … Continue reading A Disney Sale: The FTC and Potential Acquirers.
Disney (ticker: DIS) CEO Bob Iger will sell the company before he walks away. Iger will not appoint another successor after his 2020 appointment of Bob Chapek as CEO failed. Today, PepsiCo (ticker: PEP) CFO Hugh Johnston was named Disney CFO (read more HERE). View Mr. Johnston's experience HERE. My view is that Disney will … Continue reading Disney’s New CFO Is an M&A Guy
Generative AI Revenue for Microsoft (MSFT), Amazon (AMZN) and Google (GOOGL) is negligible and will not provide a meaningful revenue boost in the near-to-intermediate term. Nvidia (NVDA) is benefitting from the broad Gen AI infrastructure build given that it is the leading Gen AI chip supplier. OpenAI (private) is benefitting as it deploys its Large … Continue reading Generative AI Will Not Provide A Meaningful Revenue Boost to AMZN, GOOGL or MSFT
Microsoft reported earnings results this evening. Despite MSFT's AI-related rhetoric, I don't see Generative AI as a significant near-to-intermediate-term Revenue driver. Azure's constant currency growth rate was essentially flat at 28%. I expect that Azure's growth rate will slow as we move through the December quarter into calendar 2024. Our chart below plots Azure's year-over-year … Continue reading Azure’s Revenue Growth and Generative AI
I don't believe that management teams will provide investors with formal 2024 guidance on September quarter EPS calls. However, there should be some interesting data points to pick-up on. 2024 Budgets: Most companies will not provide full 2024 budget commentary and may not provide any 2024 commentary at all. However, I would expect companies to … Continue reading What’s Important To Listen For On Upcoming Tech Earnings Calls
Growth for Microsoft Azure and Google Cloud Platform will continue to slow this week when MSFT reports earnings on October 24th and Alphabet reports on the same date. Azure and GCP customers are largely cutting heads or keeping headcount flat, not adding headcount. Thus, Azure and GCP usage will be flattish to down for most … Continue reading Azure and Google Cloud EPS This Week
Microsoft closed its Activision acquisition. As we wrote on August 7th - Activision will add strategic glue to MSFT's Xbox platform by adding hit gaming content such as the Call of Duty franchise. We are fans of vertical acquisitions. The complementary pieces - once combined - have the ability to differentiate the acquiring company from … Continue reading Microsoft’s Activision Deal Adds “Strategic Glue” To Its Xbox Platform
To put it simply, the Biden Administration's FTC is anti-capitalist and anti-American. The primary problem with FTC Chair Lina Khan's organization is that it suffers from overreach as does the Biden Administration. Why Ms. Khan's FTC ever pushed back on Microsoft's pending acquisition of Activision is beyond me. Anti-competitive? How? One company (MSFT) is a … Continue reading The FTC Will Not Breakup Amazon Or Google
Sure, Microsoft (ticker: MSFT) is not wildly overvalued like a number of other names, yet the Redmond Software giant's stock is pricey at approximately 24x trailing Cash From Operations. That's a hefty multiple for a company that is not growing Cash From Operations and is primarily growing revenue because of price increases (MSFT will have … Continue reading Microsoft Is Overvalued
Our 2 minute 14 second YouTube video on how we believe the Gen AI cycle will play out. https://youtu.be/d4_6SMFnPZc?feature=shared
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