As investors sold shares of Microsoft on Thursday, the $3.22 trillion company dragged down the software complex and the S&P 500 index.

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My biggest impressions from the article

Microsoft shares slid about 10% on Thursday following an earnings report that disappointed some investors, prompting the stock’s sharpest daily decline since March 2020.

Microsoft’s finance chief, Amy Hood, argued that the cloud result could have been higher if it had allocated more data center infrastructure to customers rather than prioritizing its in-house needs.

“If I had taken the GPUs that just came online in Q1 and Q2 in terms of GPUs and allocated them all to Azure, the KPI would have been over 40,” she said.

Analyst Ben Reitzes of Melius Research, with a buy rating on Microsoft stock, said during CNBC’s “Squawk on the Street” on Thursday that Microsoft should double down on data center construction.

“I think that there’s an execution issue here with Azure, where they need to literally stand up buildings a little faster,” he said.

LMAO, the analysts and C level execs are going to accelerate the fall of Micro$lop.

  • Jesus_666@lemmy.worldEnglish
    20·
    10 hours ago

    Or double down on AI. Then double down even harder.

    • Make the use of Copilot mandatory; simultaneously heavily monetize it to instantly turn the AI division into a profit center.
    • To that end release the successor to Windows 11, a cloud-only offering that replaces the taskbar with a Copilot instance which launches programs for the user. Downplay any accusations that the new Windows Live 365 With Copilot is just a rental Windows 11 with the taskbar hastily hacked out.
    • Don’t forget that Windows Live 365 With Copilot does not include a subscription for Copilot, which must be booked separately.
    • Get all of your customers to switch by immediately dropping support for all previous Windows versions, “migrating” their support windows over to Windows Live 365 With Copilot. Corporate customers, which have gone all-in on Azure, will need years to migrate off the Windows ecosystem, which means excellent short-term revenue.
    • Make sure that Windows Live 365 With Copilot can only save to OneDrive to make it maximally hard for those customers to get their data out.
    • Hope that the current world order disintegrates before the massive exodus of customers ruins the company.
    • Whether or not it does, turn off your business phone and spend the next five years doing massive amounts of cocaine on a private island in the South Pacific.