MSFT surged 15% post-earnings while GOOGL slipped, after both doubled capex and GOOGL posted its first-ever negative free cash flow quarter.
Alphabet's full-stack TPU-to-Gemini approach cuts Nvidia dependency, while Microsoft's OpenAI partnership created a $4.9B GAAP revenue drag from partner losses.
Alphabet's 15 P/E looks compelling if capex peaks, but Microsoft's $678B contracted backlog delivers revenue certainty that justifies its higher multiple.
Act now: the **** yst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.
Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) closed out two of the most watched earnings reports of the summer. Both beat handily. Both doubled infrastructure spend. Yet the market treated them very differently, and the reason sits inside one question: when does AI capex stop being a cost and start being a return?
#msft
Alphabet's full-stack TPU-to-Gemini approach cuts Nvidia dependency, while Microsoft's OpenAI partnership created a $4.9B GAAP revenue drag from partner losses.
Alphabet's 15 P/E looks compelling if capex peaks, but Microsoft's $678B contracted backlog delivers revenue certainty that justifies its higher multiple.
Act now: the **** yst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.
Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) closed out two of the most watched earnings reports of the summer. Both beat handily. Both doubled infrastructure spend. Yet the market treated them very differently, and the reason sits inside one question: when does AI capex stop being a cost and start being a return?
#msft
2 months ago
