Yesterday, 11:22 AM
- See: Microsoft +5.2%; Azure growth headlines Q1 2017 results [updated]
- Positive: Upgrades issued at William Blair (Market perform to Outperform) and Wunderlich Securities (Hold to Buy, $70) [current price $59.91]. William Blair's Jason Ader notes increasingly competitive cloud positioning and improving cloud margins. Ryan MacDonald at Wunderlich Securities projects Q2 inflection point on LinkedIn deal closure and phone business sale, in addition to value enhancement across the platform to be derived from LinkedIn. Oppenheimer & Co.'s Tim Horan, maintaining an Outperform rating and $62 target, highlights cloud position and sees continued momentum in the segment going forward.
- Neutral: J.P. Morgan's Mark Murphy maintains a Neutral rating, though raises price target from $55 to $57 on cloud business confidence. Goldman Sachs' Heather Bellini, also remaining Neutral, cites Q2 guidance that's below the midpoint of consensus for the tenth out of previous thirteen quarters. Nonetheless, raises her price target from $57 to $60, FY 2017 revenue estimate from $94.3B to $94.6B and EPS estimate from $2.82 to $2.95.
- Negative: John DiFucci considers Q1 results "okay" and feels it's too soon to tell whether a business transformation is truly underway. Further: "Results Exceed Consensus Set by Lowered Guidance; Results Largely in Line with Consensus Before Guidance Lowered. Revenue for all three business segments were better than consensus estimates that were lowered after last quarter’s conference call lowered guidance. However, the reported results were largely in line with estimates prior to lower guidance." Also notes clarity and context regarding certain cloud business data points could be useful in discerning more precise conclusions around what they actually mean. Remains Underweight on Microsoft, though raises price target from $40 to $43.
- Microsoft's (MSFT +4.8%) presently trading 7% higher on a three-month term and 27% higher on the year.
Yesterday, 9:18 AM
Thu, Oct. 20, 5:36 PM
Thu, Oct. 20, 4:20 PM
- Microsoft (NASDAQ:MSFT) reports revenue at $22.3B (+3% Y/Y, $590M above estimates), operating income at $7.1B, net income at $6B and EPS at $0.76 ($0.08 above estimates). Share repurchases and dividends in the quarter totaled $6.6B.
- Revenues breakdown – Productivity and Business Processes +6% (Office commercial products and cloud services +5%, Office consumer products and cloud services +8%, Dynamics products and cloud services +11%); Intelligent Cloud +8% ( Server products and cloud services +11%, Azure +116%, Enterprise Services +1%); Revenue in More Personal Computing -2% (Windows OEM unchanged, Windows commercial products and cloud services unchanged, Phone -72%, Gaming -5%, Search advertising +9%).
- Closure of LinkedIn acquisition and phone business sale expected in Q2.
- CEO Satya Nadella: "We are helping to lead a profound digital transformation for customers, infusing intelligence across all of our platforms and experiences. We continue to innovate, grow engagement, and build our total addressable market."
- Conference call (outlook forthcoming)
- Press release
- Previously: Microsoft discloses new metrics to be included in FY17 reports
- Update (4:50PM ET): Microsoft shares, presently $60.44, are trading at all-time highs.
Thu, Oct. 20, 4:08 PM
Wed, Oct. 19, 5:35 PM
Tue, Oct. 18, 2:27 PM
- Microsoft today discloses the availability by year-end of physically isolated versions, across two new regions, of Azure Government and Office 365 US Government Defense for use by the U.S. Department of Defense. Built in DoD Impact Level 5 controls (only cloud provider to possess for infrastructure, platform and productivity services) highlighted with Level 5 Provisional Authorization on track to be met.
- South West and South Central Azure Government regions to additionally go live in 2017, bringing total dedicated regions for government clients to six (more than any other cloud platform).
- Overall, Microsoft (MSFT +1%) counts 6M Microsoft Government Cloud users across 7K federal, state and local government customers.
Fri, Oct. 14, 2:11 PM
- Antitrust approval has already been granted in the U.S., Canada and Brazil.
- A November 22 deadline has been set by the European Commission to review the arrangement. If concerns arise, an extended investigation would be opened.
- Salesforce (CRM +6.2%), looking to generate added complication, has attacked the deal claiming competition would be hurt should it go through. With today's news the company won't be making a bid for Twitter along with prior commentary, the suggestion LinkedIn (MSFT, LNKD) was the asset Salesforce truly desired to win seems increasingly tenable.
Wed, Oct. 12, 11:06 AM
- Australia, Ireland, France, Germany, New Zealand, and the United Kingdom.
- Though Microsoft (MSFT -0.8%) is primarily highlighting developers and commercial partners in the expansion, with the program opened to any developer or business customer willing to pay $3K for the device in the U.S. and Canada back in August, a similar progression could now potentially be realized beyond North America.
- Microsoft HoloLens: Welcome International Developers and Partners
- Upcoming: Microsoft schedules New York City event for October 26
- Related: Facebook's Oculus working toward mid-range VR
Mon, Oct. 10, 1:24 PM
- Formerly known as Facebook at Work.
- The project had been in closed beta for more than a year, though Facebook notes 1K organizations so far utilize the service (India, the U.S., Norway, UK and France cited as top countries).
- As of today, worldwide availability begins for "any company or organization that wants to use it."
- With this move marking Facebook's (FB +1.1%) first major foray into enterprise, Slack (Private:SLACK), Microsoft (MSFT +0.3%), Salesforce (CRM +6.6%), Atlassian (TEAM +0.7%) and others will be on watch going forward.
- Workplace, Pricing
- Last week: Facebook introduces dedicated events app
Fri, Oct. 7, 1:37 PM
- Officially: "To see what's next for Windows 10."
- While speculation on what Microsoft (MSFT) could be planning for the event ranges from developments involving HoloLens, Xbox, Project Scorpio, Windows PCs and Surface to purely OEM hardware and software announcements, it wouldn't be surprising if a splashy disclosure or two were made given what observers have come to expect from major technology company events.
- Microsoft Windows 10 Event
Fri, Oct. 7, 9:19 AM
- Yair Snir has reportedly transitioned to Dell EMC's (NYSE:DVMT) ventures segment, Dell Technologies Capital.
- Prior-held role at Microsoft (NASDAQ:MSFT) said to remain unfilled.
- Dell Technologies Capital considered to target early and late-stage start-up investments within storage, security, hybrid cloud and big-data segments.
Tue, Oct. 4, 7:31 PM
- Following on a report that Yahoo (NASDAQ:YHOO) scanned its customers' mail for government intelligence officials, operators of other major e-mail services -- Microsoft (MSFT, operator of Outlook and Hotmail) and Google (GOOG, GOOGL, operating Gmail) -- have issued statements saying they're safe from that sort of intrusion.
- "We have never engaged in the secret scanning of e-mail traffic like what has been reported today about Yahoo," a Microsoft spokesman told CNBC. As for Google: "We've never received such a request, but if we did, our response would be simple: 'no way.' "
- Earlier, Yahoo had said in its own statement that it complied with U.S. laws.
- With the question put to the other major services, noted whistleblower Edward Snowden today had tweeted "Heads up: Any major email service not clearly, categorically denying this tomorrow -- without careful phrasing -- is as guilty as Yahoo."
Mon, Oct. 3, 1:40 PM
- Intensifying competition with Amazon (AMZN -0.5%), which just announced a new AWS region in France on Friday. Both companies set 2017 timeframes to begin datacenter operations in the country.
- In Microsoft's (MSFT -0.4%) announcement, doubled cloud capacity across Europe over the last year and total cloud investment in the continent of $3B are highlighted.
- CEO Satya Nadella: "We continue to invest heavily in cloud infrastructure to meet the growing demand from European customers and partners. Building a global, trusted, intelligent cloud platform is core to our mission to empower every person and organization on the planet to achieve more. There’s never been a better time for organizations across Europe to seize new growth and opportunity with the Microsoft Cloud.”
- In annother move revealed today further signaling Microsoft's intention to compete more aggressively in the cloud space, Azure prices have been lowered, in some cases by up to 50%, effective as of October 1.
- Azure pricing details
Mon, Oct. 3, 9:47 AM
- September monthly performance was: -0.52%
- 52-week performance vs. the S&P 500 is: -11%
- $0.16 in dividends were paid in September
- Top 10 Holdings as of 8/31/2016: Apple Inc (AAPL): 5.01757%, Microsoft Corp (MSFT): 4.59213%, Exxon Mobil Corp (XOM): 3.65506%, Johnson & Johnson (JNJ): 3.32616%, General Electric Co (GE): 2.90192%, Procter & Gamble Co (PG): 2.3854%, Wells Fargo & Co (WFC): 2.34646%, Pfizer Inc (PFE): 2.17377%, JPMorgan Chase & Co (JPM): 2.08563%, Amazon.com Inc (AMZN): 2.02582%
Mon, Oct. 3, 9:10 AM
- September monthly performance was: +0.58%
- 52-week performance vs. the S&P 500 is: -9%
- $0.23 in dividends were paid in September
- Top 10 Holdings as of 8/31/2016: Apple Inc (AAPL): 3.96271%, Microsoft Corp (MSFT): 3.09853%, Johnson & Johnson (JNJ): 2.24259%, General Electric Co (GE): 1.95493%, Exxon Mobil Corp (XOM): 1.64204%, Procter & Gamble Co (PG): 1.33805%, Wells Fargo & Co (WFC): 1.31607%, Pfizer Inc (PFE): 1.21901%, Nestle SA (OTCPK:NSRGF): 1.15897%, Intel Corp (INTC): 1.14963%