TMT Breakout

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TMTB: MSFT & META Takeaways

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TMT Breakout
Jul 31, 2025
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MSFT +8%: 2nd straight quarter of Azure accel, but not done yet

Azure +39% cc ahead of guide 34-35% and bogeys of 36%. Guide 37% y/y/ Let’s not complicate things - that’s the key KPI that drives the stock. Guide

After last quarter, we got super bulled up on MSFT given the Azure set up: improving AI demand + a very easy comp set up, saying we thought Azure would accel to 40% by Q2’25 while the street was still pencil’ing in a decel. Well, we are almost already at 40%! — and the comps haven’t even started getting easier!

What do we think Azure can grow now?

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