My biggest impressions from the article
Microsoft shares slid about 10% on Thursday following an earnings report that disappointed some investors, prompting the stock’s sharpest daily decline since March 2020.
Microsoft’s finance chief, Amy Hood, argued that the cloud result could have been higher if it had allocated more data center infrastructure to customers rather than prioritizing its in-house needs.
“If I had taken the GPUs that just came online in Q1 and Q2 in terms of GPUs and allocated them all to Azure, the KPI would have been over 40,” she said.
Analyst Ben Reitzes of Melius Research, with a buy rating on Microsoft stock, said during CNBC’s “Squawk on the Street” on Thursday that Microsoft should double down on data center construction.
“I think that there’s an execution issue here with Azure, where they need to literally stand up buildings a little faster,” he said.
LMAO, the analysts and C level execs are going to accelerate the fall of Micro$lop.
Is that the bubble beginning to pop?
Naw, the valuation is still $3.22 trillion. The bigger tell will be the AI only companies start feeling the squeeze.
Dunno, the bit about dedicating more data center capacity to customers rather than in-house use seems to suggest that Microsoft are acknowledging that AI is a bubble and they were unable to get any real value out of it but that they think the bubble has some life left yet and they can still make a buck selling compute to other
suckersvisionary investors.Seems like it’s down because investors think they didn’t spend enough on AI.