The market is already concerne

The market is already concerned about Microsoft’s AI spending. If this additional capex is not matched by accelerating Azure growth, the market will punish the stock immediately.

Citi’s valuation framework:

Bull case $650: Azure >39% growth, AI Copilot revenue exceeds expectations

Base case $600: steady growth, moderate multiple expansion

Bear case $380: Azure slows from 39% to 35%, capex pressure not offset by revenue

Earnings Season: Divergence or Surprise, Which Stocks Are You Looking at?

Nearly two-thirds of the way through the earnings season, S&P 500 is reporting impressive results. Both the percentage and the magnitude of earnings surprises are above recent averages. As a result, the index is reporting higher earnings for the first quarter today relative to the end of last week and relative to the end of the quarter. In addition, the index is reporting its highest earnings growth rate since Q4 2021. ------- Which company bring us surprises or misses? What stocks are you looking at? Share with fellow tigers and win tiger coins~

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