GOOGL shares have come a long way since we wrote that they looked attractive on Feb 27th 2023 (HERE). Do MSFT shares deserve the premium they have versus GOOGL shares? (Table below). Not in my view. I appreciate that MSFT does not have the Advertising exposure that GOOGL has, but the valuation premium seems too … Continue reading Google, Microsoft, Amazon and AI
AI Failure: Many Companies Will Fail To Scale Their AI Projects
Many companies will fail in their implementation of various AI projects. Many companies underestimate the cost and effort associated with advanced automation / "AI" projects. In addition, companies often fail to clearly define the business problem they wish AI to solve upfront in their AI project process. 1.) Define the Business Problem: This is not … Continue reading AI Failure: Many Companies Will Fail To Scale Their AI Projects
Google’s Discount To Microsoft Is Too Steep
I'm fully aware that Ad Revenue (Ad-related Revenue accounted for 78% of Google's total revenue in the March quarter) does not command the same multiple as subscription revenue, but should Microsoft command 2x GOOGL's valuation on an EV/Revenue and EV/ Cash from Operations basis? It would seem that GOOGL's valuation discount to MSFT is punitive. … Continue reading Google’s Discount To Microsoft Is Too Steep
Microsoft: Too Big To Be Accountable?
It feels as though Microsoft (MSFT) and perhaps the largest Tech companies are too big to be held accountable. While I much prefer MSFT CEO Satya Nadella to former CEO Steve Ballmer, nowhere on MSFT's recent EPS call was there a single question about organic revenue growth. Acquisitions likely accounted for at least one percentage … Continue reading Microsoft: Too Big To Be Accountable?
The U.K. Blocking MSFT’s Proposed Activision Deal
Whether it is the FTC or Britain's Competition and Markets Authority (CMA), I believe these Government agencies often block proposed mergers and acquisitions simply to justify their existence. They are government agencies after all and require taxpayer funds (or printed money) to survive. The CMA's MSFT decision adds zero value, will hinder innovation, and demonstrates … Continue reading The U.K. Blocking MSFT’s Proposed Activision Deal
AWS, Azure, GCP and Oracle
My outlook as it relates to AWS, Azure, Google Cloud Platform (GCP) and Oracle's cloud server business is unchanged as compared to the article we wrote back in January (HERE). Fewer startups will be built upon remote server platforms (AWS and Azure being numbers 1 and 2) as most startups are cutting heads or worse … Continue reading AWS, Azure, GCP and Oracle
NLP & Productivity Apps: Microsoft Copilot
Back in March 2019 we wrote about the future use of NLP-powered applications across various industries - in particular Financial Services (our 2019 TEK2day article HERE). Microsoft (MSFT) is bringing natural language capability to its Productivity suite - Microsoft 365. This natural language offering has a name: "Copilot". We include an example of Copilot deployed … Continue reading NLP & Productivity Apps: Microsoft Copilot
Gold Safer Than Software
Investors have historically moved to Gold in times of uncertainty. Gold has moved substantially higher since the market turmoil in the banking sector kicked off last week. Here's why investors should be interested in Gold: perpetual money printing by the Fed, ever larger fiscal deficits and a mounting debt load - the combination of which … Continue reading Gold Safer Than Software
Amazon Bank, Apple Bank, Google Bank…
Fed Chairman Powell should lob calls into Andy Jassy (AMZN CEO), Tim Cook (AAPL CEO), Sundar Pichai (GOOGL CEO), Satya Nadella (MSFT CEO) and Doug McMillon (WMT CEO) in an effort to persuade them to consider acquiring a bank. To hell with potential pushback from the FTC. AMZN, AAPL, GOOGL, MSFT and WMT already dabble … Continue reading Amazon Bank, Apple Bank, Google Bank…
Random Thoughts On Google
Some random thoughts on Google.. Google has an IR problem. For a company that grew constant currency revenues by 7% in the December quarter GOOGL shares ought to be trading higher. It's clear that investors don't fully understand the story. Google can simplify the story with a smarter IR effort. If the cloud around Google … Continue reading Random Thoughts On Google
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