Microsoft had a blow-out quarter. Sales of $16 billion or so and a 22 percent increase year over year. Wow.
Net income was way up 48 percent — more than $4.5 billion for the quarter.
And their stock was flat after the announcements. Familiarity breeds contempt with Wall Street.
Analysts thought the stock would do well because Microsoft is a bellweather company. As the economy improves and businesses start to replenish and refresh tech infrastructure, the business would naturally get the lion’s share of the growth — which it did. No big deal they say. What have you done for me lately with the “new and latest and greatest sexy stuff?” they ask.
I am bullish though. This growth says that businesses have a lot more confidence in their prospects over all, and that Microsoft did a great job in managing expenses. And being at the right place at the right time.
Microsoft. Apple. Google. The big three in the tech community. All three companies are thriving right now. The big get bigger. The small get marginalized. Down cycles end up being good for big, at-scale companies. They cut back expenses and when the tide turns, they can’t spend fast enough to eat margins, hence profitability soars. Good on them. We need a strong tech community. We need lots of growth and profits from industry leaders.
