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M&Ms
$65.6 billion. That's how much revenue Microsoft generated during the three months ended September 3
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Couple things maybe of interest.
META has hit the AI use case jackpot. Their business is all about catching and holding people’s attention, by any means possible, and AI is a cheap and effective way to do that. So ads are more effective, ad prices go up, people get sucked into spending more time in META’s “surfaces”, and their own opex is getting levered. You know how everyone is looking for a profitable end use for AI? META has it. Numbers are going up.
MSFT’s revenue is constrained by AI capacity, they are rushing to build more, even as margins are under (modest) pressure from those costs. MSFT is a little careful too, “turning away” third-party training business (other than OpenAI) to focus on inference customers. They claim the expected $10BN/yr AI revenue runrate next quarter is “all inference” and thus “superior quality” revenue. Not sure numbers go up much near-term, sounds like capacity acceleration is a couple quarters out.
I can always depend on John to do the company-specific analysis for me. If I thought I could afford you, I’d hire you, John.
Thanks John, that resonates.
But why does Henry Winkler have 6 fingers? Also, the shark appears to have 3 pairs of pectoral fins.
Highly recommend the series, Barry, with Henry Winkler in significant, if not brilliant, supporting role…love the Fonzie reference…made my morning abroad…and also…I knew (excitedly) that John L. would provide some color on M&M…thanks John, and H…