Microsoft (MSFT) / Bill Gates 02 (Apr 18 - Dec 27)

[winston]

not vested

Microsoft Corporation - Stock Analyst Research
Target Price* 465.00
Recommendation ACCUMULATE

Microsoft Corp - Azure strength fuels revenue growth

9M24 revenue/PATMI was in line with expectations at 74%/77% of our FY24e forecasts.

3Q24 revenue growth of 17% YoY was supported by strength in cloud computing business Azure.

PATMI rose by 20% YoY to US$21.9bn due to higher operating leverage.

For 4Q24e, Microsoft expects total revenue to grow by 14% YoY to US$64bn fueled by Azure revenue growth of 31% YoY and Office 365 Commercial revenue growth of 14% YoY. Microsoft’s implied operating margin for 4Q24e is ~42%.

We maintain ACCUMULATE recommendation but raise our DCF target price to US$465.00 (prev. US$450.00), with an unchanged WACC of 7.2% and terminal growth rate of 4.5%.

Our FY24e revenue estimates remain unchanged, while we increased our PATMI by 2% to account for lower expenses.

We believe that the growing demand for large AI models could help attract customers to Microsoft’s Azure platform for storage and computing solutions.

Source: Phillips

https://www.poems.com.sg/stock-research/MSFT/

[behappyalways]

$MSFT is one of the most diversified technology companies on Earth, with exposure to a number of key growing industries within technology.
https://twitter.com/Mayhem4Markets/stat ... 3051400421

[behappyalways]

Melinda Gates Abruptly Quits Bill & Melinda Gates Foundation
https://www.zerohedge.com/political/mel ... foundation

[behappyalways]

Bill Gates Liquidated $1.7 Billion Of His Portfolio, Mirroring Buffett's Move To Stockpile Cash
https://finance.yahoo.com/news/bill-gat ... 15782.html

[behappyalways]

Investors just haven't factored in what happens to the earnings and future growth of US tech names as the "silicon curtain" descends. In this case, #MSFT is facing the prospect that it will be restricted from selling AI cloud services to China
https://x.com/JulianMI2/status/1791105384683282679

[winston]

not vested

Microsoft shares fell as much as 7% in extended trading on Tuesday as investors looked past better-than-expected earnings and revenue and focused instead on disappointing cloud results.

Microsoft’s revenue increased 15% year over year in the fiscal fourth quarter, which ended on June 30, according to a statement.

Net income, at $22.04 billion, was up from $20.08 billion, or $2.69 per share, in the year-ago quarter.

Revenue from Azure and other cloud services grew 29% during the quarter. Analysts polled by CNBC and Street Account had expected 31% growth. Microsoft’s Azure number hadn’t fallen short of consensus since 2022.

With respect to guidance, Microsoft called for fiscal first-quarter revenue between $63.8 billion and $64.8 billion, implying 13.8% growth at the middle of the range. Analysts polled by LSEG were looking for $65.24 billion in revenue.

Source: Phillips

[winston]

not vested

Microsoft Corp – Co​ntinued strength in cloud services
PSR Recommendation: ACCUMULATE
Target Price: 480

FY24 revenue/PATMI met our expectations at 100% of our forecasts.

4Q24 revenue growth of 15% YoY was supported by strength in its cloud services and gaming segments, led by Azure and Xbox.

For 1Q25e, Microsoft expects total revenue to grow by 14% YoY to US$64.3bn fueled by a 29% YoY rise in Azure revenue and a 14% YoY increase in Office 365 Commercial revenue.

Microsoft’s implied operating margin for 1Q25e is ~45%, down from 48% in 1Q24 due to rising CAPEX on capacity expansion.

We maintain our ACCUMULATE recommendation but raise our DCF target price to US$480.00 (prev. US$465.00), with an unchanged WACC of 7.2% and terminal growth rate of 4.5%.

We nudge lower our FY25e revenue estimates by 1% due to moderating client spend, while increasing our PATMI by 2% to account for lower operating expenses.

We roll over an additional year of valuations but increased our FY25e CAPEX by about 30%.

We believe Microsoft is well-positioned to benefit from the rising demand for large AI models, boosting Azure’s appeal and driving incremental

Source: Phillips

https://www.stocksbnb.com/reports/micro ... -services/

[behappyalways]

$MSFT is the most diversified megacap tech company, with revenue originating from a variety of key products and services
https://x.com/Mayhem4Markets/status/1818582989443346676

[behappyalways]

Microsoft announces US$60 bil buyback, raises dividend by 10%
https://www.theedgesingapore.com/news/u ... ividend-10

[winston]

not vested

Analysts revisit Microsoft stock price targets after Q1 earnings

by Martin Baccardax

First-quarter earnings of $3.30 per share under its new reporting structure, topping Wall Street's consensus estimate of $3.10 per share, while overall revenue rose 16% to $65.6 billion.

Source: The Street

https://finance.yahoo.com/news/analysts ... 17419.html