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- 📈 $MSFT: The Money Machine
📈 $MSFT: The Money Machine
Happy Tuesday folks,
It’s a big week for tech companies as Amazon, Apple, Google (Alphabet) and Microsoft are all reporting earnings.
Featured Stock of the Week
A note that neither Underwriter nor this newsletter provides investing or trading advice. Please consult with a financial professional before making investment decisions. By reading, you agree to not take this as financial advice and assume all risk.
MSFT: Microsoft $403.93
Our featured stock of this week is Microsoft. The stock has done exceptionally well lately and many estimate that it will continue to do well.
$22B in Profit Last Quarter and Growing
Microsoft is the money maker among tech companies. By placing the profitability of Microsoft next to Nvidia -we can appreciate how well the stock has done. Microsoft reported $22B in profit last quarter and is expecting a 10% growth in revenue in most of its business units. |  |
1M+ Subscribers from AI Coding Assistant
Microsoft reported back in October, that its coding assistant (GitHub Copilot) has 1 million paying users in over 35,000+ organizations using it. GitHub Copilot claims to increase developer efficiency by 55%. With tech companies focusing on efficiency and cost cutting, it’s likely that Github Copilot will continue to drive strong revenue. Additional Reading |  |
$1.4T Cloud Business + 4x Growth in Cash
Microsoft has grown its cash and cash equivalents from $20B to $80B -a 4x increase which speaks to just how well the company is operating. Amazon used to enjoy being the sole giant in the cloud computing business. Microsoft has almost doubled its share of the cloud computing market and now trails Amazon’s market share dominance by only 10%. Additional Reading |  |
What do you think about Microsoft |
Major Market News
Earnings Week for Big Tech: Microsoft, Google, Apple and Amazon
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Its earnings season - a time in the quarter when just about every public company will be announcing earnings. Expect a lot of price movement during this time.
What are Earnings: Earnings are when public companies announce the results of their business performance. It’s mandatory and done every quarter.
Why this matters: Earnings are very important as they’re used to:
- 1) Asses how a company is doing
- 2) Recalibrate the outlook on a company
- 3) Measure how the broader economy is doing
How it all works: In being a publicly listed company, companies abide by a strict set of rules to ensure they’re accurately reporting performance. This regulatory framework gives investors confidence that companies are being honest. The Securities and Exchange Commission -a government agency, doesn’t play around if companies fail to play by the reporting rules.
Companies file various forms with the SEC to report their earnings. Some but not all, host a 30 minute or so call to report on earnings and take questions from top analysts and investors.
Some prominent reporting earnings this week include:
- Microsoft
- Google
- Pfizer
- Starbucks
- Mastercard
- Apple
- Amazon
How did you like today's newsletter? |
A note that Underwriter and this newsletter is not investing or trading advice. These are stocks and information we find interesting. Please consult with a financial professional. By reading, you agree to not take this as financial advice and assume all risk. Futures, stocks, bonds trading of any kind involves a lot of risk. No guarantee of any profit whatsoever is made. In fact, you may lose everything you have. We guarantee no profit whatsoever, You assume the entire cost and risk of any trading or investing activities you choose to undertake. You are solely responsible for making your own investment decisions. Owners/authors of this newsletter, its representatives, its principals, its moderators and its members, are NOT registered as securities broker-dealers or investment advisors either with the U.S. Securities and Exchange Commission, CFTC or with any other securities/regulatory authority. Consult with a registered investment advisor, broker-dealer, and/or financial advisor. Reading and using this newsletter or any of my publications, you are agreeing to these terms. Any screenshots used here are the courtesy of Underwriter. The data, quotes and information used in this blog is from publicly available sources and could be outdated or outright wrong - I do not guarantee accuracy of this information.