TMTB: MSFT META First takes
MSFT +7%: Azure +39% vs street at 34% and bogeys of 35-36%
Guide comes on the call and bogeys expect 1-2ppts decel guide, but the 40% Azure # looks like it’s very much on the horizon given easier comps ahead. Stay the course.
META +10%: Great rev print with Q3 guide implying 21% at the midpoint and an accel to 24%+ at the high end. This is their largest revenue beat vs their guide in the last 4 years
Zuck backing up the words with the new hires. We bought some post-print given narrative coming out of this is accelerating growth + newly assembled AI All-star team. With an easier comp in Q1 2025, we could see revs get to mid 20s…
Q2 Revs $47.5B vs street at $44.B and buyside at $46B
Q3 Rev $49B at the midpoint vs street at $46.2B
EPS way ahead at 7.14 vs street at $5.89
Capex goes up to $66B to $72B from $62 to $72B
Opex narrowed at the LE to $114-$118 from $113-$118B