Articles Tagged: google cloud

3 articles found

Microsoft After Earnings: Is Copilot Finally Paying Off? Azure AI Revenue, Office Monetization and the Cloud‑Margin Tradeoff

Microsoft opened its fiscal year with a clean beat on revenue and earnings, powered by 40% year-over-year growth at Azure and accelerating demand for AI services. Yet shares slipped in extended trading as management guided to a faster capital expenditure ramp to keep pace with capacity‑constrained AI infrastructure. The market’s verdict underscores a central question for the stock: Is Copilot’s monetization—and Azure’s AI wave—translating into durable, high‑return growth strong enough to offset near‑term margin pressure? The early evidence is compelling. Microsoft’s fiscal Q1 revenue rose to about $77.7 billion, with Intelligent Cloud up 28% and Azure outpacing peers. Meanwhile, Microsoft 365 revenue per user improved, helped by Copilot and E5 mix, and the Copilot family surpassed 150 million monthly active users. Commercial bookings more than doubled, and the company’s backlog swelled to $392 billion with roughly a two‑year weighted duration. But meeting demand requires scale—and capital. Capex jumped to $34.9 billion in Q1, about half of which went to short‑lived GPUs and CPUs, and the company now expects the FY2026 capex growth rate to exceed FY2025.

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Oracle’s 30% Spike: Cloud Megadeals, AI Capacity, and a $455B Backlog — Does the Outlook Justify the Rerating?

Oracle rocketed after earnings despite a headline EPS and revenue miss, as investors focused on an extraordinary multiyear demand picture tied to artificial intelligence and cloud infrastructure. Remaining performance obligations surged to $455 billion, management mapped a path from roughly $10 billion of OCI revenue in FY2025 to $18 billion in FY2026 and as high as $144 billion by FY2030, and capex is set to climb about 65% to approximately $35 billion this year to build capacity. The core debate now is whether backlog quality, conversion tempo, and execution against aggressive capacity plans can sustain the stock’s rerating in the face of power, supply, and competitive constraints.

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AI Wars in the Cloud: How Microsoft, Amazon and Google Are Repricing the Market’s Next Profit Cycle

Big Tech’s AI-and-cloud arms race is setting the tone for equity leadership as late summer trading unfolds. Microsoft, Amazon and Alphabet anchor enterprise AI budgets and control hyperscale infrastructure that Europe increasingly relies on—elevating both return potential and regulatory scrutiny. As of Monday’s session, the market tone is constructive: the S&P 500 (SPY) trades near 644.32 and the Nasdaq-100 (QQQ) around 572.23, with gold (GLD) near 310.53 and long-duration Treasuries (TLT) around 87.00, per Yahoo Finance. The Treasury curve has re-steepened at the long end even as policy remains tight: 3-month ~4.27%, 2-year ~3.68%, 10-year ~4.26%, and 30-year ~4.88% (U.S. Treasury), implying a positive 10s–2s spread of roughly +58 bps. With the effective fed funds rate steady at 4.33% and unemployment at 4.2% (FRED), investors are rewarding earnings durability, operating leverage, and clear AI monetization paths.

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