Azure's accelerating growth and better returns per capex dollar leave further upside on the table for Microsoft, the favored hyperscaler. Azure grew 48% versus 44-45% guidance, its fifth straight beat. The stock is holding eight-week EMA support, with the blue candle still intact. x.com 

Microsoft's faster Azure growth on less capital spending than feared is the mix investors wanted from Big Tech. Azure brought in $33.2 billion last quarter, up 48%, its third consecutive quarter of accelerating growth; capex was $45.2 billion versus $50.8 billion expected. x.com 

Microsoft is a great business but still an expensive bet at $385, because heavy AI capex is eroding free cash flow. Capex was revised to $190B for the year, $43B above expectations, and free cash flow fell to $15.8B. Revenue grew 18% to $82.9B, operating income 20%, Azure 40% and AI run rate reached $37B, with a 47% operating margin. The average analyst target of $560 implies 45% upside only if the AI spending converts on schedule. x.com 

Microsoft's 50% Azure growth and prospect of positive cash flow in 2027 make the stock look bulletproof. Headcount cuts, lower Anthropic spend, a better Copilot routed to cheaper tokens, and coming proprietary chips and model usage add to the case. It should get Apple's multiple plus recognition for cybersecurity. x.com  x.com 

Microsoft's AI spending is producing faster growth with better economics: Azure accelerated to 48% on a $100B+ base while capex was $39.4B, below expectations. Management then guided Azure to 49-50% and said demand still exceeds supply, ending the debate over whether AI investment is paying off. Overweight, $625 target. x.com  x.com  x.com 

Microsoft's delivery delays are affecting earnings, making other sources of returns look safer now. x.com 

Microsoft's salesforce and governed platform unlock AI spending at conservative firms. Faster enterprise than consumer AI adoption makes it effectively the only pure play. M365 Commercial may top 20% growth next quarter, sooner than expected on tonight's guide; GitHub resegmentation helps, but it should do so this year anyway. Azure and M365, two-thirds of revenue, should grow above 50% and 20% and may accelerate. $24-25 CY27 EPS remains achievable, implying under 22x forward earnings. x.com  … Show more

Rapid revenue growth makes the capex bear case harder to justify for Microsoft, Alphabet, Meta and Amazon. Their latest cited growth rates are 18%, 23%, 28% and 16% in Q2, respectively; their scale does not seem to be slowing them as expected. x.com 

The market wants Microsoft to be the first hyperscaler to slow AI capex, and while that would lift its shares in the short term, investors will later realize what it means and panic. Per Goldman, the first hyperscaler to signal slower spending will likely be rewarded, others will follow, and that reflexivity stalls the capex cycle; Nvidia is trying to prevent it. Asked by Michael Hartnett how far hyperscalers must fall before the market trades capex cuts, the answer for Microsoft is 2021 levels. … Show more

Microsoft became a strong buy after consolidating at its 200-week moving average for months, and its earnings reaffirmed that call. It smashed earnings, eased off AI capex and saw free cash flow rebound strongly. x.com  x.com  x.com