Microsoft, results: the cloud and its horizon

Posted Jan 25, 2023, 7:13 PMUpdated on Jan 25, 2023 at 7:46 PM

“You renew yourself every day, sometimes with success, sometimes without, but it’s the average that counts. One of Satya Nadella’s most beloved quotes seems to inspire Wall Street, determined to stay as calm as possible after Microsoft’s quarterly release marked its weakest revenue growth since 2016.

The “guidance”, that is to say the outlook for the rest of the year ending at the end of June, has however prompted a dozen brokers to revise their expectations downwards.

But the horizon remains clear, since according to the CEO, the share of digital expenditure will continue to grow in GDP over the coming years, thanks in particular to artificial intelligence.

The Azure machine

The slight rebound in the session of the share price of the Redmond firm (-0.5% in the morning after -3.1% at the opening) shows that the managers do not consider it so badly placed to cash in on the slowdown in the US economy, despite the weight of its consumer business.

Other values ​​cataloged “cloud” have been even more shaken up, heavyweights (Amazon, Alphabet) or light horses (Snowflake or Datadog).

Azure’s growth will slow by several percentage points, but starting from a high (+30% or so at the end of December). This “cloud computing” machine, which has enabled Info Tech values ​​to be beaten for five years, remains part of stock market history.

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