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Microsoft FY23 Q1 Earnings
- trdtaylor1 4y agoNotice how the stock cratered after hours? Growth is slowing on cloud revenue. It's lower than expectations. Cloud is a big reason for the expanded PE ratio on both Amazon and Microsoft. Amazon reports in 2 days, already it's taking a hit. A bit of the assumption is cloud spending would not be as impacted as the Microsoft one is showing. Tech companies in general will likely show red tomorrow, as the markets digest this news.
- deleted 4y ago[deleted]
- sbelskie 4y agoI’m sure they will be red but MSFT has PE of ~25 which is pretty boring for a “growth” tech stock. AMZN has a PE of >100 and is one of the few remaining outliers among big tech companies. The rest are much closer though not exactly equal to boring blue chip PE ratios.
- jl2718 4y agoBut cloud is still growing while the stock drops. This tells me that the cloud investment thesis is incorrect, and investors actually care more about PC Windows and Xbox. This makes more sense because cloud compute is destined to become a low-margin commodity, while Windows and Xbox are protected brands.
- andsoitis 4y agoThis quarter Microsoft Cloud revenue was $25.7 billion, up 24% (up 31% in constant currency) year-over-year. Compared to Google, if I read their Financials correctly, their Cloud revenue was just $6.8 billion for the quarter. https://abc.xyz/investor/static/pdf/2022Q3_alphabet_earnings_release.pdf https://abc.xyz/investor/static/pdf/2022Q3_alphabet_earnings...
- keepquestioning 4y agoHoly crap.
- TrainedMonkey 4y agoLooks like Microsoft > Google in Cloud wars. For comparison Google Cloud revenue is just $6B, source: https://news.ycombinator.com/item?id=33338258 https://news.ycombinator.com/item?id=33338258 Amazon is probably dominating both of them combined...
- deleted 4y ago[deleted]
- jiggawatts 4y agoMaybe not any more: https://www.statista.com/statistics/250520/forecast-of-amazon-web-services-revenue/ https://www.statista.com/statistics/250520/forecast-of-amazo... Looks like Azure + Microsoft 365 has overtaken AWS. The question is whether Azure alone has overtaken AWS…
- candiodari 4y agoYou can sort of tell by the fact that they didn't announce it had. If Azure was bigger than AWS they would, sure as hell, have announced it. So it hasn't.
- jiggawatts 4y agoThat's probably an accurate deduction. I generally base my unofficial estimates on the volume of blog posts, google hits, etc... for specific offerings that have direct equivalents in the two clouds. I still see a significantly smaller volume of hits turning up for Azure, which makes me suspect that they have a higher revenue per resource. E.g.: I suspect Azure targets "large enterprise", which is notoriously wasteful, whereas AWS targets frugal startups that use Linux and OSS.
- prepend 4y ago
- chirau 4y agoCloud services now bring in more money than Productivity and Business suites. Interesting.
- johannes1234321 4y agoYou only get a good discount on Microsoft Dynamics if you also get some cloud credits ... oh and while getting it: do you want the LinkedIn integration to Dynamics? LinkedIn is accounted for under cloud, too. They can shift the revenue accountingwise wherever they want it. (Just have to make sure they internally track it better, to see which products actually bring the money ...)
- GartzenDeHaes 4y agoMicrosoft bundles on-prem enterprise office and exchange licenses into O365, so I think those numbers are misleading.
- jeffhwang 4y agoYes I think this is correct. For years, MS has made apples-to-apples comparisons with AWS challenging by bundling in cloud app revenue into the overall Azure cloud business. Makes sense bc Office365 SaaS was so much larger than IAAS and PAAS.
- chirau 4y agoO365 and on-prem enterprise suites are under Productivity and Business Processes