Mid-Week Wrap: 31st January 2024
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Market Mood
On the evening of January 30th, Microsoft announced robust profits, showcasing its strongest revenue growth since 2022, fueled by advancements in cloud computing supporting AI products. Despite these positive results, Microsoft shares experienced a decline. With a market cap surpassing $3 trillion, Microsoft recently surpassed Apple as the world's most valuable company. Alphabet (Google), on the same evening, reported Q4 revenue below expectations, with its search business facing challenges from ChatGPT, in which Microsoft holds a 50% ownership. Noteworthy tech companies, including Apple, Amazon, and Meta, are scheduled to report Q4 earnings on February 1st. Microsoft is projected to earn $12.30 per share next year, totaling $91 billion in profits based on 7.4 billion shares. The question arises: how long can Microsoft sustain its growth before encountering monopoly constraints?