The Cloud is Everything Right Now
Hey folks,
This is one of those days where I personally see too much news. I think this separates me from a lot of folks in the tech news game. I always see interesting stuff to talk about. But some days are like this where I can't fit it all in. So this issue is going to at least link to everything I found interesting with most things getting at least a sentence as to why.
Here goes!
Tom
"Microsoft Earnings Growth Accelerates on Stronger-Than-Expected Cloud Demand - WSJ"
Cloud cloud cloud. This is all about cloud. Microsoft is trying to play up AI but that still is a very small part of cloud. AI will become bigger, and it's Microsoft's current hedge against cloud market saturation. But this earnings report solidifies that Microsoft is the leading cloud company with AWS right in there with it. Pay attention to the fact that Microsoft talked about how their customers had to cut back on cloud expenses but Microsoft still turned that into a big revenue jump by working with the customers instead of losing them.
"Microsoft CEO Satya Nadella admits giving up on Windows Phone and mobile was a mistake - The Verge"
Why would Nadella say this now? Think about the answer to that. I think he's trying to come up with, in his words to Insider, a way of "reinventing the category of computing between PCs, tablets, and phones." That may or may not come to anything, but he doesn't say this out loud without purpose.
"Alphabet (GOOGL) earnings Q3 2023"
"YouTube Ad Rebound Helps Alphabet Beat Q3 Expectations – Deadline"
"Watch Alphabet Shares Fall After Cloud Unit Results Miss - Bloomberg"
Cloud cloud cloud. In this case though, it's bad news for Google. Ad revenues are great but they're a little volatile lately and a little saturated. There's not much more room for growth. So investors want to see what else Alphabet can make money at. And they can make money in cloud. Outside of expectations, it was a decent quarter for Google Cloud. But when you think you're going to hit a mark and you fall short, that sometimes means your losing steam and Google needs to show its gaining steam in Cloud. Sadly that cloud news overshadows very good news for YouTube, which I think folks may be undervaluing. YouTube is shaping up to be the future of TV. A couple of years from now we may have stories about how YouTube replaced cable and we need more competition and an antitrust investigation or something.
"Snap Sees Upside Surprise As Q3 Revenue, Daily Active Users Rise – Deadline"
The magic formula. Add AI! Never count Snap out my friends. They are feisty.
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