Key insights
- An analyst suggests cloud demand is significantly higher based on Google Trends data, potentially validating Microsoft's increased capex spending. This could indicate stronger future revenue growth for MSFT, justifying a higher valuation. However, the analysis relies on Google Trends as a proxy for actual demand, which may not be perfectly correlated. The analyst also discloses a personal investment in MSFT.
Microsoft's narrative about spending more on capex to meet demand might actually be true. Link to Google Trends results below.
Disclaimer: I bought MSFT myself $410 DCA so I might be biased. Obviously not a financial advice, everyone is responsible for themselves :)