OPINION: Microsoft boss Satya Nadella was selling the AI revolution hard on Wednesday. But the pay-off remains a little further away than investors may have expected.
Satya Nadella is probably one of the top chief executives in the world. But he’s definitely one of the best salespeople in the tech sector.
and has arguably the clearest adoption story to sell investors: that is, Microsoft can win big and win quickly by deploying AI-enabled technology across its existing suite of business products and cloud services. Clearly, the AI profits are coming and they are likely to be impressive. But for investors who’ve bid Microsoft’s valuation up to 37 times earnings – in a market trading on about 19 times – the question is whether the stock can keep running.
To be clear, Microsoft is handling this well, trimming its own costs to match to protect margins; Hood says that even with its investment requirements, the company will continue to protect operating leverage in the next 12 months, such that earnings grow faster than sales.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tragic development after fire rips through retirement villageA person is dead after fire ripped through a retirement village at Kilmore. The complex had to be evacuated this morning as the blaze took hold in two buildings. rochelleebrown1 7NEWS
Read more »
Man raced to hospital after shooting in Sydney7NEWS: Man raced to hospital after shooting unfolds in Sydney
Read more »
High-profile lawyer shot in 'targeted' attack days after gangland shooting in same suburbA high-profile lawyer was confronted by a gunman and shot in broad daylight outside a home in Sydney's south-west, which is on the same street where a gangland figure was executed last year.
Read more »