Microsoft delivered a mixed set of results for the last quarter as its revenues failed to meet Wall Street expectations but the company managed an earnings beat. Revenue for the Microsoft Cloud surpassed $27 billion, increasing 22% and 29% in constant currency. In the current economy, switching to the cloud is the greatest approach for any customer to reduce demand uncertainty and energy expenses while enjoying the benefits of cloud-native development. Enterprises have doubled the number of calls they run on the company’s cloud in the last two years and have shifted millions of calls to Azure. Nevertheless, the long-term cloud opportunity is still in its infancy. Microsoft is also facilitating the emergence of the AI era. Besides, the company made its Azure OpenAI widely available and has already been used by over 200 clients, ranging from KPMG to Al Jazeera. They also declared the conclusion of the next phase of their contract with OpenAI. During the quarter, the company collaborated with the London Stock Exchange Group to bring the newest data analytics and workplace solutions to the financial services industry. They also acquired Fungible to build a reliable, secure, high-performance, scalable, disaggregated, scaled-out data center infrastructure. Overall, we remain optimistic about their long-term strategy and give them a ‘Buy’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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