MSFT's AI Arc:

AI stock Microsoft (MSFT) has taken a dramatic turn for the better since Satya Nadella became CEO in 2014. What followed Nadella's ascension was the key acquisitions of GitHub, LinkedIn, and Activision (Microsoft also owns 49% of OpenAI). Microsoft's success in subscription revenue, gaming, and Azure more than make up for its lagging hardware offerings (think Surface tablet). Its relationship with OpenAI has positioned Microsoft to benefit from all the major advances delivered by OpenAI. Microsoft is also a leader in security, a position slightly disgraced when Russia hacked their internal systems in late 2023. Despite a few hiccups, $MSFT has proven it belongs in the pole position with its impressive ability to adapt to the AI revolution.

MSFT's Earnings:

The last $MSFT earnings was full of optimism. Here's a summary of the tone and general outome of the earnings call.

MSFT Earnings Highlights:

• Cloud grew 24% YoY (72% margins)
• Paid GitHub subs grew 30% QoQ
• Device revenue decreased 9% YoY
• Despite AI costs, still growing margins YoY
• MSFT Copilot makes users 29% faster

MSFT Position:

$MSFT is 4.41% of our overall AI portfolio. We first entered Microsoft on 6/1/23 with an initial entry price of $330.93.