My biggest impressions from the article
Microsoft shares slid about 10% on Thursday following an earnings report that disappointed some investors, prompting the stock’s sharpest daily decline since March 2020.
Microsoft’s finance chief, Amy Hood, argued that the cloud result could have been higher if it had allocated more data center infrastructure to customers rather than prioritizing its in-house needs.
“If I had taken the GPUs that just came online in Q1 and Q2 in terms of GPUs and allocated them all to Azure, the KPI would have been over 40,” she said.
Analyst Ben Reitzes of Melius Research, with a buy rating on Microsoft stock, said during CNBC’s “Squawk on the Street” on Thursday that Microsoft should double down on data center construction.
“I think that there’s an execution issue here with Azure, where they need to literally stand up buildings a little faster,” he said.
LMAO, the analysts and C level execs are going to accelerate the fall of Micro$lop.
“If I had taken the GPUs that just came online in Q1 and Q2 in terms of GPUs and allocated them all to Azure, the KPI would have been over 40,” she said.
“If I had bet on black instead of red I would have won”
$357 billion is between the total GDPs of Finland and Sri Lanka
Oh no. Anyway…
Make Windows 7 again (or just use Linux), ditch AI, value your users. Sack the CEO. Pretty simple.
Their core users are corporations, not personal households.
This would be great, but unfortunately would not make number go up. That is all they care about now.
I dunno. Windows 11 sales have been crap. People aren’t buying new machines due to it. Relaunch 12 as privacy focussed, AI enabled (but optional), and they could see a bounce. Double down on Office, keep a steady improvement on Azure, and see Xbox as a growth opportunity. Microsoft could avoid the AI slump
Notice how Apple have not jumped all in. They are anticipating the storm and are well prepared to weather it out
Apple did jump in but then backed out once it was clear their offering wasn’t even close to the competition. Remember their big push on Apple Intelligence and how most of the features they promised never materialised?
While the back-peddalling was embarrassing at the time, I agree that their cautious approach since will probably work out better than Microsoft going forward.
Windows & Xbox are like 16% of M$'s revenue, they’re not that important to the company.
Exactly, both are under performing. New CEO should be fixing that
But they don’t give a shit about them, they cater to companies first and foremost.
Companies care about Windows for sure
They are running their own schemes as of right now.
Sorry you’re right, number MUST GO UP /s.
sigh.
Writing this from Linux which I installed last fall in lieu of the Windows 11 update.
I’m still using both OS via dual boot, and I still have some unresolved issues on Linux, but I will fully transition during the course of this year.
One thing that is really mind-blowing is the difference in performance on my ~7 y/o laptop. My Linux Mint is just lightning fast compared to Windows 10. You can quite literally feel how Windows runs a thousand random things in the background (most of which I never asked for) whereas Linux feels very clean and… empty, but in a good way.Nice! I love reading about people ditching winblows. next thing you’ll know, you’ll be distrohopping in no time. :)
The same Melius Finance that gave Tesla stock its highest rating of “must own” due to Elon lying again that Full Self Drive is being deployed imminently to Teslas via their in-house “AI chips” eta Dec 2025?
https://finance.yahoo.com/video/tesla-stock-must-own-melius-220721932.html
Tesla stock is currently at $416 after a high of $474 in November, around when this call was made.
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Someone needs to engineer a virus that removes whatever defect humans have in their DNA that causes civilization-imperiling greed.
Stupify them
Is that the bubble beginning to pop?
Naw, the valuation is still $3.22 trillion. The bigger tell will be the AI only companies start feeling the squeeze.
Dunno, the bit about dedicating more data center capacity to customers rather than in-house use seems to suggest that Microsoft are acknowledging that AI is a bubble that doesn’t provide any real value but they think the bubble still has some life left yet and they can make a buck selling compute to other
suckersvisionary investors.Seems like it’s down because investors think they didn’t spend enough on AI.
I would desperately love for companies to lose big on LLMs. The vast majority of users just don’t seem worth the huge energy costs. I do think there are a number of worthwhile ML applications that could make the world better, but I have little faith that they’ll be allowed to unless they generate big profits.
rather than prioritizing its in-house needs.
I can’t help reading this as “AI has cost us this shitload of money”
What else can plunge down on necks real fast?
I was surprised that S&P500 gained over last year ~16%, but dollar lost compared to euro ~15℅, so there was no real gain.
Mosquitos
Keep it going!
They are still up 25% over the past year?
Maybe get rid of that Bitconnect-ass looking dude?
BITCONNEEEEEEEE……eternity
“lost”. Isn’t it just virtual money from the values of the shares anyway (until they are realized by selling)?
Is the money in your pension “virtual money”?
Microsoft didn’t lose 10%. Investment funds holding Microsoft lost 10%, and they invest other people’s money.
Oh look at that, a little kick in my step. Good tidings.
