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The Joseph Carlson Show

Microsoft Is Selling Off After Earnings

Jul 30, 2024
Microsoft faces a significant sell-off following disappointing cloud earnings, shaking up the tech sector. Meanwhile, Google, Moody's, and S&P Global also reported earnings, each revealing unique growth patterns. A major IT outage linked to a CrowdStrike update has sparked legal issues and stock declines for Delta Airlines. In a surprising twist, Netflix grapples with controversy over political donations, raising questions about founder accountability. Despite backlash, Netflix's subscriber growth shows resilience against boycotts.
41:11

Podcast summary created with Snipd AI

Quick takeaways

  • Microsoft's slight stock decline post-earnings highlights the volatility in investor sentiment driven by cloud growth expectations, despite strong overall performance.
  • Texas Roadhouse's impressive revenue and net income growth, along with strategic expansion plans, underscores the importance of innovation and market positioning in the restaurant industry.

Deep dives

Microsoft's Mixed Earnings Report

Microsoft's earnings report showed a slight decline in stock value despite beating earnings expectations on both revenue and earnings per share. The primary driver for investor disappointment was the underwhelming growth of its cloud service, Azure, which reported a year-over-year growth of just 29%, falling short of the anticipated 31%. Investors in the stock market reacted negatively to this discrepancy, emphasizing the volatile nature of stock valuations based on growth rates. Nonetheless, Microsoft continues demonstrating overall strong performance, with its intrinsic value and free cash flow remaining robust, solidifying its position for long-term growth.

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