Scholars Corner: Why Microsoft is Unstoppable - podcast episode cover

Scholars Corner: Why Microsoft is Unstoppable

May 10, 202311 min
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Episode description

In this clip we discussed Microsoft announcing their earnings causing the stock to rise. 


#earnyourleisure #microsoft


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Transcript

Speaker 1

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Speaker 2

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Speaker 3

Microsoft. Yes, so Microsoft had its earnings and it helped to start tremendously. Yes, if anybody's a Microsoft holder, I'm sure you saw a spike in your portfolio last week.

Speaker 4

Yeah.

Speaker 3

So, what are some some takeaways that we can get from Microsoft's latest developments.

Speaker 2

Go ahead, you take it?

Speaker 4

No, I text you, Yeah, I'll text you. Was that usher raiment?

Speaker 2

So I was like, there it goes.

Speaker 4

My bage killed it. They killed that man. We'll talk about another time. Let's just run down the line of things of why.

Speaker 5

Right, So a lot of people will see the numbers, but they have no idea why, and most times people don't listen. Here goes are things we talked about growth, right, When you want to invest in the company, you want.

Speaker 4

To see growth. So how did the growth look over this quarter?

Speaker 3

All?

Speaker 2

Right?

Speaker 5

So the net income rose by nine percent up to eighteen point three billion.

Speaker 4

That's a positive.

Speaker 5

The revenue increased by seven percent to fifty two point eight six billion, another positive. The productivity and business process so that segment of the business which encompasses office in LinkedIn rose by eleven percent.

Speaker 2

LinkedIn is frushing it.

Speaker 4

That's a bonus. Right.

Speaker 5

But teams, right, the Team's communication app had over three hundred monthly active users in the quarter, and that's up from over two hundred and eighty three.

Speaker 4

Hundred million people using teams. Not to mention that they said that they are going to continue to.

Speaker 5

Invest in cloud infrastructure, particularly in AI related expenditures. That's a positive because again, when we talked about Intel IBM, we were talking about adaptivity. How w they adjust to the new technology. Are they innovating in real time? We've seen Microsoft do it. Open AI is something they invested in. Obviously, we know the chat GPT space only helps the quarter.

So when we're talking about growth, when you're talking about net income, you're talking about revenue, you're talking about all the segments that have grown. That's why you see a quarter like that. That's why you see your earnings report like that. That's why you saw the stop go up

like that. Now, the only thing that went down slightly from x diectations was the cloud service, and it went down from I think a thirty one percent increase to twenty seven a slight decline, which is okay, it's not catastrophic. But there were so many other positives, which is why when I text you like then she goes again, she goes again, She's a beauty.

Speaker 6

One quarter fifty two point nine billion dollars in revenue. That's more than most companies are doing, like in a lifetime. It's one quarter, operating income twenty two point four billion. Net income was eighteen point three So when your comparents, should I buy this stock versus another?

Speaker 2

Let's just see who has the most cash on hand.

Speaker 6

Something we've been saying to other podcasts is two recents.

Speaker 2

What is the net income?

Speaker 6

They have eighteen point three billion dollars and one quarter?

Speaker 2

Why would you?

Speaker 6

And Look teams destroys, Zoom and Slack at the same time puts a lot of LinkedIn's putting a lot of They're the only professional social.

Speaker 2

Network that is still growing.

Speaker 6

Yeah, this company is all too perfect, and of course with an investment in AI, they are on earners.

Speaker 4

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Speaker 3

Coach.

Speaker 7

The energy out there felt different. What changed for the TA today?

Speaker 5

It was the new game day scratches from the California Lottery player is everything?

Speaker 4

Those games sent the team's energy through the roof?

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Speaker 7

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Speaker 2

It pays to be the leader.

Speaker 6

And they haven't even fully integrated everything from chat GPT four and.

Speaker 2

Five comes out into office.

Speaker 6

That's going to increase productivity, like I think Microsoft is trying to increase the productivity of the GDP of America. You can't fight with that company. Two tech, two index, no stress. One of the tech and that configuration is Microsoft Cloud revenue, even though it went down, was that twenty eight point five billion.

Speaker 2

Up twenty five percent year over year.

Speaker 4

Yeah.

Speaker 5

I think most people, especially like they'll think of Microsoft and the first thing that they'll think is like Xbox, and that's like such a small, small, small piece of the business.

Speaker 2

Small.

Speaker 4

Yeah, like these this is where the money is.

Speaker 5

Like, we got to really like when we dissect the company, Yeah, on the service, that's what we know.

Speaker 2

It's only three percent of the revenue.

Speaker 4

It's such a small piece of the business. It's crazy, right, And and it's it's.

Speaker 5

Relevant because it's like, yeah, that is something that gauges people's interest in it, Like from a younger audience. It's like, yeah, I can introduce Microsoft to my kids because there's an Xbox, but that might be the entry. But like, no, this is how they make their money. These are all the ways that they're making it. And when you see a report like that, when everything has risen and the important categories and supportant segments, that's the company you.

Speaker 4

Want to invest in.

Speaker 6

Absolutely and ironic place, Microsoft insatias I'll perform Google. And while Google's in the advertising space, while they had barred before chat GBT became this behemoth, They've had some missteps and Microsoft is not like he's done an amazing job. Like next to Tim Cook, I think he's the second best CEO of this eras down cool.

Speaker 2

But yes and chat if you made money off Apple and Microsoft.

Speaker 6

This is the one that keeps on going and in about a year and a half a year break that high of three forty nine and should get to that three seventy five area. Please continue to hold if you're in the call, it is doing well. I won't tell your business, but job well done.

Speaker 4

Appreciate you, Yeah, appreciate you.

Speaker 2

So Microsoft is for the long haul. Just keep buying it absolutely as long as SATI is there.

Speaker 6

Like, I don't see is there any business services company that can beat them?

Speaker 2

Adobe can't.

Speaker 6

Google currently got the solid company, slept On company. But solid company slept On Yeah, matter can't. After we'll talk about them money. They've done better with the cost cut of measures, but there isn't a productivity suite.

Speaker 2

That allows you to do more.

Speaker 6

And I know what people think of Microsoft as born, but they just continue to get better and better and better every year. And I think the stock is actually under priced. It should be in a four P fifty five. Rane's performing billion dollar companies up twenty five percent of today which is crazy. It's a quarter percent return crazy. Twenty five ran out in three months. Unbelievable.

Speaker 3

Yeah, my graduates from my school being force back. Drop bag drop Mike, drop bag drop draft.

Speaker 1

An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christy nom the United States

Secretary of Homeland Security. Under President Trump, attempted illegal border cross are at the lowest levels ever recorded, and over one hundred thousand illegal aliens have been arrested. If you are here illegally, your next you will be fine nearly one thousand dollars a day, imprisoned and deported. You will never return. But if you register using our CBP home app and leave now, you could be allowed to return legally.

Do what's right. Leave now. Under President Trump, America's laws, border and families will be protected.

Speaker 2

Sponsored by the United States Department of Homeland Security,

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