This week saw Microsoft (MSFT US) miss estimates yet the stock rallied 5% on positive guidance – another clear illustration that the markets bears/sellers have currently lost control. Their revenue and income fell short as revenue from Azure and other cloud services – earnings came in at $2.23 v $2.29 expected while revenue of $US51.87bn was below the markets $US52.44 forecast. This was the 1st time since 2016 that MSFT missed earnings – moving forward the company reiterated 2023 guidance which feels brave considering the economic uncertainty.
- We remain long MSFT but the earnings numbers provided a catalyst for us to reduce our exposure i.e. in this case prudence is the better form of valour. We trimmed from 9% to 6%.
MM is long MSFT but we trimmed our position this week
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