Microsoft: Cyclical Negatives Obscuring Secular And Technology Positives

Feb. 02, 2023 11:42 PM ETMicrosoft Corporation (MSFT)15 Comments
Bert Hochfeld profile picture
Bert Hochfeld


  • Microsoft's latest quarter showed the effects of cyclical headwinds of various kinds on the company's business.
  • Growth guidance for the company's Azure business disappointed.
  • Earnings and cash flow estimates were cut.
  • Yet none of this represented a deterioration in the company's market position or loss of share in any relevant market.
  • The company's various strategies to grow faster than the market and to improve margins are battling macro headwinds but remain successful.
Microsoft headquarter and offices in City Gate Towers in the Northern part of the city

Cristina Ionescu

Microsoft’s latest quarter: Warts on display; Opportunities on the horizon

I don’t usually write about specific quarterly results for different companies. I realize that many readers are anxious to see an evaluation of quarterly results in the shortest possible time. I used

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Bert Hochfeld profile picture
Bert Hochfeld graduated with a degree in economics from the University of Pennsylvania and received an MBA from Harvard. Mr. Hochfeld has enjoyed a long career in the tech world, working for IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software. Starting in the 1990s, Mr. Hochfeld worked as a sell-side analyst and won awards from the Wall Street Journal for his coverage of the software space. In 2001, Mr. Hochfeld formed his own independent research company, Hochfeld Independent Research Group, which provided research services to major institutions including Fidelity, Columbia Asset, SAC Capital, and many other prominent institutions and hedge funds. He also operated the Hepplewhite Fund, a hedge fund that specialized in technology investments. Hedge Fund Research, an independent 3rd party firm that specializes in ranking managers, rated the Hepplewhite Fund as the best performing small-cap fund for the 5 years ending in 2011. In 2012, Mr. Hochfeld was convicted of misappropriating funds from a hedge fund he operated. Mr. Hochfeld has published more than 500 articles on Seeking Alpha, all dealing with companies in the information technology space. Highly esteemed for his investment wisdom accumulated over decades, Mr. Hochfeld ranks in the top 0.1% of Tip Ranks analysts for his selection of information technology stocks and their subsequent successes.

Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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