Microsoft's Q4 Results 'Fine' But Not 'Blowout,' Says Top Analyst: Why Azure Slight Miss Has A 'Unique Sting?'
Portfolio Pulse from Shanthi Rexaline
Microsoft's Q4 results showed a slight miss in cloud revenue, leading to a modest sell-off in shares. Analysts remain bullish on the company's AI prospects and future growth in Azure revenue. The miss in Azure's growth rate, now matching Google's, suggests competition with Amazon's AWS. Increased capex is seen as a long-term positive.
July 31, 2024 | 8:39 am
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NEGATIVE IMPACT
Azure's growth rate now matches Google's, suggesting it is gaining share on Amazon's AWS.
The competition from Azure and Google Cloud Platform could be seen as a negative for Amazon's AWS, potentially impacting its market share.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Microsoft's Q4 results showed a slight miss in cloud revenue, leading to a modest sell-off in shares. Analysts remain bullish on the company's AI prospects and future growth in Azure revenue.
The slight miss in cloud revenue and forward guidance below some estimates led to a sell-off. However, analysts remain positive about AI monetization and future Azure growth, which could mitigate the negative impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Google Cloud Platform's growth rate now matches Azure's, suggesting increased competition with Amazon's AWS.
The matching growth rate with Azure indicates that Google Cloud Platform is performing well, which could be seen positively by investors.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Microsoft's increased capex is expected to benefit Nvidia in the long term.
Higher capex from Microsoft could lead to increased demand for Nvidia's products, benefiting the company in the long term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30
POSITIVE IMPACT
Microsoft's increased capex is expected to benefit Taiwan Semiconductor Manufacturing Company in the long term.
Higher capex from Microsoft could lead to increased demand for TSM's products, benefiting the company in the long term.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 30