2022/01/26

Strong of a quarterly just baked better than estimates, the Microsoft giant is increasingly ready to become the Master of the Metaverse, as Barron's has already defined it, in a head-to-head against Facebook or better Meta Platforms.

The ambition is all there, as the ceo sat Nada Nadella confirmed, in the conference call with which he commented on the financial results for his second fiscal quarter (fourth quarter of 2021). And as he also anticipated the announcement, days ago, of the mega acquisition of the video game manufacturer Activision Blizzard, for a value of 68.7 billion dollars.

Facebook's Microsoft's Deal for Activision Blizzard Makes it The Master of the Metaverse: despite Mark Zuckerberg's Facebook, you might add, he even changed his company's name from Facebook to Meta Platforms.

On the other hand, MSFT Facebook CEO Nadella was indeed the first ceo of a Big Tech to recognize the value of the Metaverse, months before the official recognition arrived by Mark Zuckerberg, number one of Facebook.

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Among the phrases he uttered, which have garnered more public attention and which have as their object the Metaverse, also the one posted on TW:

"The Metaverse is here, and it is not only transforming the way we see the world but also the way we participate in it."

Nadella Again:

"When we talk about Metaverse, we are describing a new platform and a new type of application, similar to when we were talking about siti It's no longer about making a game with your friends. It's about being in the game with them".

Of course, even Mark Zuckerberg is not joking at all, in expressing all the passion for what is the new market niche with strong growth potential.

"In the future, instead of talking on the phone, you can sit on my couch thanks to your hologram, or I can sit with my hologram on your couch, and together we can really feel the feeling of being in the same place, even if we were (in reality) in different states or hundreds of kilometers away".

Yesterday, on the occasion of the conference call held to comment on the quarterly just released, and talking about metaverso, Nadella reiterated his vision:

"We feel very well positioned to ride the next wave of the Internet, and I believe that the next wave of the Internet will be a more open world where people can build their own metaverses, whether it's organizations, game developers or any other," he said.

Microsoft: quarterly numbers and outlook

The quarterly profit of the American giant Microsoft beat analysts ' estimates, thanks to the strong revenue growth of the main segment, the one that includes cloud services and the flagship Azure, the public platform that offers cloud computing services, equal to +46%.

It ' true, to be picky - and the market on these things is - that the pace of growth of the cloud business was lower than in the previous four quarters, when it was at or above +50%.

However, the result was in line or in some cases higher than analysts ' expectations, allowing the giant to witness, thanks to the positive trend of other segments, an increase in total turnover equal to +20% year-on-year to $51.73 billion, better than the $50.88 billion expected by analysts polled by Refinitiv, against a rise in Net Profit of 21% y/y to $18.77 billion.

Eps stood at $2.48 per share

Microsoft, the center of attention in recent weeks for the announcement of the mega acquisition of video game maker Activision Blizzard, worth $ 68.7 billion, has entered the Olympus of the world's most important mega-caps by betting significantly on corporate services and softare

In the new era of smartor

The LinkedIn division also performed very well in the quarter, which reported a 37% year-on-year revenue growth, thanks to solid advertising demand, and a 22% increase in sessions, due to a "record engagement", which included more than 20,000 events. So much so that Microsoft ceo sat Nada Nadella himself said that "LinkedIn has become one of the leading platforms for professional events".

Looking ahead, am Hood Hood, Microsoft's chief financial officer, reassured investors on the solidity of demand for the company's products from the various divisions, saying he expected for the third fiscal quarter, therefore the first quarter of 2022, revenue between $48.5 and $49.3 billion, a slowdown compared to that of the quarter just ended but better than the $48.23 billion expected by the Refinitiv consensus.

Still, Hood said he expected full-year operating margins to expand.

Immediately after the publication of the quarterly, the reaction of the stock was not the best - also thanks to the risk off sentiment that has seen the Nasdaq in recent sessions as the main victim - the positive outlook issued by the group gave an assist then to the prices, which now report a slightly upward trend in Nasdaq

Regarding the trend of the stock since the beginning of the year, Microsoft has suffered a decline of 14%, and is oriented to end the worst month since 2010, thanks to the demobilizations that have battered tech stocks due to the prospect of a rate increase due to a Fed determined to be more Haish. We will see at this point if Satella's latest statements will rekindle market interest in the stock, at a time not exactly auspicious for technologists.

Michael Zippo
https://linkedin.com/in/michael-zippo-9136441b1
info@e-book.business

Sources: Finanza.com

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