hawshy
11-03

$Microsoft(MSFT)$  2024 revenue breakdown reveals an impressive shift in its business model. Here are some highlights:

1. Windows and Office — The classic Microsoft products, Windows and Office, which once dominated revenue, now make up only about a third of the total.

2. Azure Cloud Services — Another third of Microsoft's revenue now comes from its cloud platform, Azure, which has rapidly grown to become a cornerstone of the company.

3. LinkedIn's Growth — Microsoft bought LinkedIn for $26 billion, and the investment is paying off, with LinkedIn generating close to $10 billion annually—an impressive turnaround.

4. Xbox — The Xbox gaming division, a long-term investment, has started showing substantial returns, cementing Microsoft's role in the gaming industry.

5. OpenAI Investment — Microsoft's $13 billion investment in OpenAI hasn’t fully translated to revenue yet, but it could be transformative, especially as AI adoption grows.

Earnings Season: Which Companies Are You Following?
AI bolsters Microsoft's Q3 Azure revenue, which increased by over 30%, but a slowdown in growth is expected for Q4 along with increased AI spending. Meta's revenue slightly exceeded expectations, but AI losses worsened, with warnings of substantial future increases, and a significant rise in capital expenditures is anticipated next year. -------------- How do you view the two giants' earnings? Will you buy the dip as Microsoft dips to $400?
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