Research archive for MSFT

Microsoft posted better than expected numbers for the 12th straight quarter on Tuesday evening. These days, strong companies are expected to beat expectations. Microsoft managed to post revenue of $52 billion, up 20% from a year ago. This was the first time that they managed to cross $50 billion for a quarter, which is amazingly fast growth off an already large base.

Which companies in the US do you think added the most value this year? Off the bat, high fliers like Tesla and Nvidia come to mind but remember they are coming off a smaller base. According to journalist Jon Erlichman, the title for 2021 goes to Microsoft. As of 13 December, Microsoft added $890 billion to its market cap. The next biggest were Google and Apple. We own all six on that list shown below, in client portfolios.

Microsoft was out with third quarter results on Tuesday, and they were wonderful. The shares traded up by 5% on Wednesday, to a new high above $325.

We mentioned briefly yesterday that Microsoft was raising prices, and here are the details. Microsoft will charge more for Office 365 for the first time in 10 years. That news sent their shares to new highs, comfortably above $300. The stock is now up 39% for the year.

On Tuesday night Microsoft reported blockbuster earnings. Here are some brief highlights. Revenues increased by 21% to $46.2 billion, net income increased by 47% to $16.5 billion and earnings per share increased by 49% to $2.17. That's just phenomenal when you consider the size and scale of this business, and the high base these numbers are coming off.

Microsoft reported their first quarter numbers on Tuesday, and they were very good, especially when compared to the corresponding period last year. Revenue was $41.7 billion and increased 19%. They made a profit of $15.5 billion which was 44% higher.

Have you noticed when the big tech execs get summoned to Washington, Microsoft seems to fly completely under the radar? Yet Microsoft is the second biggest company on the planet with a market cap of $2 trillion. Only Apple is bigger at $2.2 trillion.

On Monday it was announced that Microsoft is buying Nuance Communications Inc for $20 billion - $16 billion for the company and another $4 billion for its debt. This is their second biggest acquisition ever. The biggest was the $26 billion paid for LinkedIn in 2016.

Yesterday Microsoft announced that they had won a contract to supply the US military with 120 000 augmented reality (AR) headsets. Management estimate that the contract could be worth as much as $22 billion over the next decade. This is another example of where the Tech Titans are able to make significant money off of non-core operations.

Microsoft is said to be one of the suitors in talks to buy the communications and voice-chat platform Discord. They could pay as much as $10 billion. The social media platform has over 140 million monthly active users and was last valued at $7 billion when it raised $140 million in December 2020.

The world of gaming is a gold mine that many companies around the globe are trying to tap. Streaming games looks like the next big thing. Google recently launched a cloud gaming service called Stadia which apparently has turned out to be a flop.

On Tuesday night Microsoft reported earnings that smashed expectations. Revenue for the quarter grew by 17% and earnings per share were higher by 34%. Not bad for a company with a market cap of $1.8 trillion. These large numbers boggle the mind.

On Tuesday night Microsoft released Q1 results which smashed the already high expectations. Revenues came in at a whopping $37.2bn, ahead of the expected $35.8bn, thanks to outperformance in all three of their main segments. Earnings per share also comfortably beat the street, coming in at $1.82 versus expectations of $1.54. Gross margins came in at 70.4% and operating cash flow reached $19.3bn. Mouthwatering stuff.

Microsoft released a strong set of quarterly numbers yesterday, beating on both revenue and profit expectations. The last three months have been the toughest for most businesses as they had to operate amid the economic downturn brought to us by the Covid-19 pandemic. Microsoft has benefitted enormously from us working from home and our need for home entertainment.

Microsoft was recently added to the Vestact list of recommended stocks in New York portfolios. There are already quite a lot of clients who own them, but now it will be suggested to those entering the market with fresh funds. We will also write about them in this newsletter more often, in the months and years ahead.