Microsoft and Alphabet are now exactly on par since the launch of ChatGPT at the end of November 2022.
Source: HolgerZ, Bloomberg
Apple almost overtook Microsoft as the largest market cap in the world.
Source: Companies Marketcap
The tale of hardware vs. software visualized through four decades of market cap development by Quartr
Four intriguing facts: → In 1981, $IBM sparked the personal computing revolution with the release of its blockbuster IBM PC. → $MSFT was assigned to develop the operating system under a non-exclusive deal, instantly catapulting the company into a market-leading position in software. → In 1986, Microsoft went public with a market cap equaling 1% of IBM's, which at the time was the largest company in the world. → IBM's market cap now equals ~5% of Microsoft's, which now is the largest company in the world with a market cap exceeding $3 trillion.
Microsoft shares rose as much as 5% in extended trading on Thursday after the software maker issued fiscal third-quarter results that outdid Wall Street’s expectations.
Here’s how the company did in comparison with the consensus from LSEG: Earnings per share: $2.94 vs. $2.82 expected Revenue: $61.86 vs. $60.80 billion expected Microsoft’s total revenue grew 17% year over year in the quarter, which ended on March 31, according to a statement. Net income, at $21.94 billion, or $2.94 per share, was up from $18.30 billion, or $2.45 per share in the year-ago quarter. The company’s Intelligent Cloud segment, including the Azure public cloud, Windows Server, Nuance and GitHub, produced $26.71 billion in revenue. That’s up about 21% and more than the $26.26 billion consensus among analysts surveyed by StreetAccount. Revenue from Azure and other cloud services grew 31%, compared with 30% in the previous quarter. Analysts polled by CNBC had expected 28.8%, while the StreetAccount consensus was 28.6%. In a nutshell: $MSFT Microsoft Q3 FY24 (ending in March): • Revenue +17% Y/Y to $61.9B ($1.0B beat). • Gross margin 70% (+0pp Y/Y) • Operating margin 44% (+2pp Y/Y). • EPS $2.94 ($0.11 beat). Azure +31% fx neutral. Source: Barchart, CNBC
Microsoft's EPS growth since its 1986 IPO
Visualized by Quartr x Acquired
With a $3 trillion market cap, Microsoft is twice the size of the entire energy sector in the S&P 500, which generates double Microsoft’s annual free cash flow.
Source: Tavi Costa
How $MSFT makes money
Source: Markets & Mayhem
