Motley Fool Money The Best Company in Big Tech?
41 snips
May 1, 2025 
Nick Sciple, a Motley Fool analyst, dives into Microsoft's impressive double-digit growth and its strategic AI investments, suggesting it has the best near-term outlook among big tech giants. Also featured is Yasser el-Shimy, discussing David Zaslav's role at Warner Brothers Discovery and his controversial leadership amidst a fast-evolving media landscape. The conversation highlights challenges in the advertising sector for Meta and examines Zaslav's goal to revitalize the entertainment industry with a focus on lucrative franchises.
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Microsoft's Robust Multi-Segment Growth
- Microsoft posted 13% revenue growth and even higher net income growth, with cloud revenue up 20% and Azure up 33%.
- AI drives 16 points of Azure growth, but non-AI cloud services remain strong, showing Microsoft's business is firing on all cylinders.
Microsoft's AI Demand Exceeds Supply
- Despite fears of a pullback, Microsoft’s AI demand is outstripping supply and they forecast AI capacity constraints by June 2025.
- The company continues heavy CapEx spending, showing confidence in strong AI-driven growth potential.
Meta’s AI-Powered Advertising Strength
- Meta reported 16% revenue growth and 35% net income growth, driven by AI improving ad engagement and efficiency.
- AI boosts platforms’ usage and ad prices; AI-powered tools also help advertisers create better ads, driving sustained ad growth.