After months in Wall Street’s doghouse, Microsoft is back on top. Analysts say the company has won the latest round of the cloud wars — and CEO Satya Nadella has won back investors’ trust, according to a MarketWatch report.
Microsoft cloud (Credits: MarketWatch)
Azure Grew 48% — and Amazon’s Growth Disappointed
The verdict came after Amazon’s Thursday earnings report: AWS grew revenue at a 39% clip in the third quarter — above the 37% FactSet consensus but below the 43–44% institutional investors wanted. Microsoft’s Azure grew 48% in the September quarter to $33.17 billion, beating the company’s own 44–45% forecast and guiding 49–50% for the December quarter. Jefferies trading-desk analyst Jeffrey Favuzza wrote that the “tactical pecking order” puts Microsoft on top, followed by Meta, Amazon and Alphabet.
Why Microsoft’s Free Cash Flow Sets It Apart
Analysts point to two edges. First, cash: Microsoft stayed free-cash-flow positive while Amazon, Meta and Alphabet all posted negative free cash flow, spending more on data centers than they generated, says Greg Halter of Carnegie Investment Counsel. Second, efficiency: Microsoft beat expectations while spending $5 billion less on capex than planned, with an AI strategy built on enterprise trust and Copilot traction, says Patrick Walravens of Citizens. Jim Cramer even summed it up as: “Microsoft? It’s a buy right here” — while saying he wouldn’t buy more Alphabet.
Also Read:
Also Read: Microsoft Just Shared Azure’s Actual Revenue in Dollars: $33.2 Billion | Why Alphabet’s Stock Fell After Its Latest Results Despite Google Cloud Revenue Doubling
Source: MarketWatch — read the full story there.
