( GOOG, GOOGL) aka Google will be dethroned from its dominant position in the digital advertising business anytime soon, there’s nevertheless a possibility that if Microsoft continues to be the leader in the AI field, then it has all the chances to disrupt the operations of its biggest competitor in the long run. Even though it’s unlikely that Alphabet Inc. Last but not least, Microsoft’s major leap forward in the AI field thanks to being one of the major backers of OpenAI’s ChatGPT chatbot has all the chances to help the company gain a greater market share in the digital advertising field. ( AMZN), lost market share in the March quarter. As the cloud market becomes a $237 billion opportunity, Microsoft has all the chances to become one of the biggest beneficiaries of the forecasted increased demand for cloud solutions in the following years, especially since its closest rival, Inc. Even though enterprises are cutting costs and laying off people, Microsoft is able to capture more market share in the cloud industry in such an environment thanks to the increase of new customers which helped its cloud business to generate $22.1 billion in revenues in Q3, up 16% Y/Y. At the same time, its social media LinkedIn experienced another quarter of record engagement as its revenue and sessions were up 8% and 15%, respectively.Īll of this shows that Microsoft continues to be resilient to the ongoing global uncertainty, and it’s one of the main reasons why its stock is currently one of the best-performing stocks of the S&P 500 Index ( SP500). On top of that, the company has also managed to increase its Microsoft 365 Consumer subscriber count to 65.4 million, up from 58.4 million a year ago. One of the most important things that needed to be highlighted is the fact that Microsoft’s core productivity and processes business managed to grow at a double-digit rate and generated $17.5 billion in revenues, up 11% Y/Y, despite all of the macroeconomic challenges that had a negative impact on its Big Tech peers. There are reasons to believe that the momentum won’t fade away anytime soon. Such a great performance helped Microsoft’s stock to reach new 52-week highs at which the business’s shares trade to this day. Last week, Microsoft revealed a stellar earnings report for Q3 which showed that its business generated $52.86 billion in revenues, up 7% Y/Y and above the consensus by $1.85 billion, while its non-GAAP EPS came at $2.45 and also above the consensus by $0.22. Microsoft has all the chances to continue to reward its shareholders in the coming years. Therefore, even though there are several challenges and risks that Microsoft is likely to face in the foreseeable future, the latest earnings results show that the company nevertheless remains a decent investment among its Big Tech peers. Microsoft’s core business continues to generate record returns, its cloud solutions once again gained new customers, and its flagship AI products are already disrupting the tech industry and could help the company create additional shareholder value for years to come. After the release by Microsoft Corporation ( NASDAQ: MSFT) of its latest earnings report for Q3, it’s safe to say that there’s nothing not to like about the company in its current form.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |