DDOG - Microsoft Q2: Not At This Price (Rating Downgrade)
2024-02-01 12:16:26 ET
Summary
- It's 10 years ago Satya Nadella took over from Steve Ballmer at the helm of Microsoft Corporation.
- He guided the company through a remarkable turnaround to the biggest company on earth, giving investors a 10x return on their stock.
- We analyze the Microsoft Corporation results that were announced on Tuesday.
- Generative AI, Azure, and GitHub are driving growth and improving productivity, with potential for further expansion.
- I show several 2-step reverse valuation models that seem to indicate Microsoft is overvalued, although it also depends on what you want as a return rate.
Introduction
Exactly 10 years ago, Satya Nadella took over at the helm of Microsoft Corporation ( MSFT ) from Steve Ballmer, and the company completely changed from a tech laggard on its way to becoming the new IBM ( IBM ) to one leading all-important trends of today, like cloud computing and generative AI. And that fueled the stock's great returns, 950% over the last decade and 1,150% if you include the dividend....
Microsoft Q2: Not At This Price (Rating Downgrade)