Can ChatGPT integration turn over MSFT? Part 1/3
As one of the most popular and best-performing technology stocks in the United States, Microsoft's $Microsoft(MSFT)$
In the last quarter, Microsoft announced its worst single-quarter revenue growth in five years, and even the revenue growth rate of the Azure cloud business, which has the most imagination, plummeted. I have to worry about how I will perform this quarter.
The performance report submitted by Microsoft shows that revenue and EPS are less than expected, but fortunately, cloud services and quarterly profits exceeded expectations, alleviating investors' concerns. Let's take a look at this report for the second quarter of 2023.
» » » 1. Quarterly performance « « «
When Microsoft released its first-quarter financial report, it predicted that the revenue in the second quarter would range from $52.35 billion to $53.35 billion, implying a growth rate of 2%.
In fact, in the second quarter of 2023, Microsoft's revenue was $52.747 billion, which met the company's own expectations, but lower than the analyst's target of $55.2 billion.
As for EPS in the second quarter, it was $2.20, and in the previous quarter, it also showed signs of slowing growth.
» » » 2. Personal computer « « «
The PC market has entered a cold winter, which has greatly frustrated the revenue of Windows licensing. Soaring inflation forced enterprises and consumers to cut spending, and Microsoft faced a decline in the market demand for PC software such as Windows. The personal computer computing department, including Windows, Xbox, Surface and advertising from Bing search engines, totaled $13.33 billion last quarter.
This quarter's revenue was $14.2 billion, down 19%:
Windows OEM revenue fell by 39%;
Windows commercial products and cloud service revenue decreased by 3%;
Xbox content and service revenue decreased by 12%;
Search and news advertising revenue after deducting the cost of traffic acquisition increased by 10%;
Equipment revenue decreased by 39%;
The revenue of the Windows OEM department that sold operating system software licenses to PC manufacturers fell 39% in the last quarter, more than any quarter since 2015, worse than Microsoft expected.
So what do you think ?
Short/Long MSFT ?(Single choice)Modify on 2023-01-26 10:26
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