Microsoft, Alphabet Still Going Concerns
Microsoft and Alphabet officially kicked off mega-cap earnings in the US on Tuesday afternoon.
To (re)state the obvious, 2023's equity rally is almost entirely a function of re-rating and monumental gains for America's tech titans, which raises the stakes for the companies whose products and services are (somewhat unfortunately) synonymous with life in the 21st century.
Jumping straight to what mattered most on Tuesday, Azure growth at Microsoft was 27% on a constant currency basis, and the co
Google’s acquisition of NFL Sunday Ticket is surely going to improve their revenue in Q4. I still do believe that Cloud adoption has already peaked, at this point it is all about cost optimization, so that should translate to slowing if not negative growth. AI in fact now assists Cloud customers in optimizing their costs now which actually hurts the Public Cloud provider’s bottom line but does provide a competitive advantage. AI is the big question, how much will that actually earn and in what ways will it assist a business in applying it in a way that provides the most utility with the least risk? (love the Sam Altman Terminator bit!) I think there is still a lot to figure out there and in the near term AI will be a net loss until those problems are solved. That is if some nefarious actor doesn’t use it to kill us all off before we even realize it’s potential as a human advancing tool.