#CanMicrosoftDeliverOnAI
I use AI tools every day for my work, so I'm not asking if AI is real. I'm asking if Microsoft's spending on it pays back.
They report earnings tonight, and the number I care about most is Azure growth. Their own guide was about 45%. Azure is where most of the AI bill has to pay off, and that bill is huge. Microsoft told investors to expect over $50B in spending this quarter alone, mostly on data centers.
Copilot is the other half. It passed 30 million paid seats last quarter, which sounds big, but a seat count doesn't show whether companies get real value or are just testing it on this year's budget.
For me, delivering on AI means all that spending turns into revenue faster than it eats into margins. Cloud margins already slipped to 65% last quarter. If Azure misses the guide while spending keeps climbing, expect the "AI bubble" posts to be everywhere by morning.
What's your call for tonight, beat or miss?
NFA
I use AI tools every day for my work, so I'm not asking if AI is real. I'm asking if Microsoft's spending on it pays back.
They report earnings tonight, and the number I care about most is Azure growth. Their own guide was about 45%. Azure is where most of the AI bill has to pay off, and that bill is huge. Microsoft told investors to expect over $50B in spending this quarter alone, mostly on data centers.
Copilot is the other half. It passed 30 million paid seats last quarter, which sounds big, but a seat count doesn't show whether companies get real value or are just testing it on this year's budget.
For me, delivering on AI means all that spending turns into revenue faster than it eats into margins. Cloud margins already slipped to 65% last quarter. If Azure misses the guide while spending keeps climbing, expect the "AI bubble" posts to be everywhere by morning.
What's your call for tonight, beat or miss?
NFA