Key insights
- The author believes Microsoft (MSFT) is undervalued, drawing parallels to past market concerns about Google and Amazon. They suggest Microsoft's decision to drop its OpenAI contract frees up cloud capacity, potentially improving margins. With new AI initiatives like 'Agent 365' and testing AI impact with major clients, the author anticipates improved financial performance starting this quarter, indicating a potentially bullish outlook for the stock.
What are your thoughts.
Is msft experiencing the same phase as google (when people thought search business is done or they are losing the ai race). Amazon went through this when aws numbers were slightly down.
I think since they dropped the contract with open ai, they have freed lots of cloud capacity and can sell them at a better margin . They are coming with agent 365. Few new deals to test the impact of ai they offer vs how it's actually helping (KPMG, mayo health, car dealerships, etc)
I think it will post better numbers starting this quarter and going forward.
Share your thoughts.