THE PAST YEAR. OKAY. WELL, LET'S GET WE HAVE A SUPER A SUPERCHARGED PANEL HERE. DON MORGAN JOINS A SENIOR PORTFOLIO MANAGER AT SYNOVUS TRUST AND SCOTT KESSLER GLOBAL SECTOR LEAD FOR TECHNOLOGY, MEDIA AND TELECOMMUNICATIONS 3RD BRIDGE DAN, THANK YOU VERY MUCH INDEED FOR JOINING SCOTT, YOU TO OF COURSE, IT'S ALWAYS A PLEASURE HEARING FROM YOU. CAN WE START OFF WITH MICROSOFT TO DOWN, I'M GOING TO CALL OUT SOME OF THE NUMBERS TO YOU ON BECAUSE I KNOW YOU'RE KIND OF DISADVANTAGE, A CONTEST TO SEE ALL THESE NUMBERS RIGHT NOW, BUT IT LOOKS LIKE A HUGE BEAT ON EARNINGS OPT >> MICROSOFT TO ADD TO 94 ON THE CONSENSUS WAS ONLY ABOUT 2, MAYBE TO 63 OR MAYBE A LITTLE BIT MORE, BUT CERTAINLY BEATING PRETTY ON THE PROFITABILITY AT MICROSOFT DOING JUST FINE. >> YEAH, ANDREW LOOKS LIKE TO BE ACROSS THE BOARD. YOU RIGHT OUT THE 3 DIFFERENT GROUPS IN TERMS OF THEIR PRODUCTIVITY. EXCUSE IN TERMS OF INTELLIGENT CLOUD, LOOKS LIKE THEY BEAT ON THAT. ALSO A MORE PERSONAL COMPUTING. THEY BEAT PRODUCTIVITY AND TOLLS A BEAT. THE BIG NUMBER COMING INTO ANDREW, WHICH I KNOW YOU'RE KIND OF SIFTING THROUGH, WAS TRYING TO GET A NUMBER OF AZER GROWTH. ON THE LAST QUARTER, THEY GREW 30%. THERE WERE 6 PERCENTAGE POINTS. WE'RE DUE TO A I SO THERE'S GOING TO BE A LOT OF YEARS, NOT JUST ON OBVIOUSLY, THE BIG BEAT THEY DID ON REVENUE AND EPS IN ON. THERE ARE 3 MAJOR OPERATING SEGMENT BUT IT'S ALSO GOING TO BE ON THE COMMENTARY THAT THEY GIVE AZER GROWTH. WAS IT ENHANCED LIKE IT WAS IN THE 2ND QUARTER DUE TO AI, LAST QUARTER WE HAD A 6 PER A PERCENTAGE POINT TO A BETTER BECAUSE I SAW I KNOW THEY'RE GOING TO LOOKING FOR THAT TREND TO CONTINUE IN THE 3RD QUARTER. >> I WILL ROLL, I NATURE, OF COURSE, BEING THEIR CLOUD COMPUTING BUSINESS. BROADLY SPEAKING. YEAH, OKAY, MOE, THAT'S I SORRY. I'M DONE. SCOTT, YOU HEARD SOME OF THOSE NUMBERS HAVE MICROSOFT M THE STREET SEEMS PLEASED WITH WHAT WITH WHAT MICROSOFT DELIVERED. THANKS RIGHT AT IF THERE'S ONE NUMBER AND I THINK DAN IF THERE'S ONE NUMBER THAT INVESTORS HE ON, IT SEEMS LIKE QUARTER AFTER QUARTER, IT'S THE TOP LINE GROWTH FOR BOMB. AND THE INDICATION WAS 31% GROWTH. I THINK THAT MARKS A CONTINUING ACCELERATION THAT B.C., NOT NECESSARILY IN THE TRAUMATIC WAY, BUT IN GRADUAL WAY THAT REALLY, I THINK SPEAKS TO TO CONTINUING ROBUSTNESS AND OF THAT BUSINESS. AND THIS COULD VERY WELL BE A SITUATION WHERE THE TAIL IS WAGGING THE DOG BUT NONETHELESS, IT IS SOMETHING THAT PEOPLE HAVE BEEN FOCUSING AND TO SEE THAT GROWTH RATE NORTH OF 30%, I THINK IS PROBABLY GET A B.C. VERY ENCOURAGING TO THE INVESTING PUBLIC. I MEAN, MICROSOFT MUST BE IN A SWEET SPOT HERE DOWN THE THESE BUSINESS CUSTOMERS, JUST SEEMS LOGICAL THAT. >> CLOUD SERVICES, WHAT WOULD WORK MORE SMOOTHLY WITH YOUR OFFICE PRODUCTS? >> AND ARE AND IF YOU LOOK AT WHERE AI HAS MADE ITS BIGGEST EFFECT, IT'S BEEN IN THE DATA CENTRE. IT'S BEEN IN THE CLOUD AND WE KNOW THAT MICROSOFT WITH AZER, HE'S BEEN IN A GREAT WERE TALKING EARLIER ABOUT A GROWTH RATE NORTH OF 30%. JUST TO GIVE YOU AN IDEA, LOOK AT A ARE IF YOU LOOK AT AWS, WHICH IS AMAZON'S PRODUCT, THEY'RE PROBABLY GOING AROUND 12 TO 13% YEAR OVER YEAR. WE'LL GET THAT NUMBER A LITTLE BIT LATER IF WE LOOK AT, FOR EXAMPLE, GCP, WHICH IS THE CLOUD PRODUCT PRODUCED BY ALPHABET, WE'RE PROBABLY LOOKING AROUND 25%. GROSSO. YOU'RE LOOKING AT AZER WITH A HUGE RUN RATE IN TERMS OF REVENUES. AND YOU'RE ALSO LOOKING AT GROWTH. THAT'S AHEAD OF THE OTHER PLAYERS IN THAT SPACE. AND AND AGAIN, A LOT OF THAT IS MOST LIKELY DO TO THE FACT THAT WE'VE HAD TREMENDOUS GROWTH IN THEIR AI IT LOOKS LIKE AZER IS UP 31% GROWTH QUARTER. AND AS YOU WERE MENTIONING EARLIER, IT IS IS RIGHT AHEAD ARE A LITTLE BIT BETTER THAN ANTICIPATED. I THINK THE STREETS GOING TO BE VERY EXCITED ABOUT THAT. >> YEAH, AS YOUR AS YOU SAID 31%, THE REVENUE INCREASE IN THE QUARTER. THE STREET WAS LOOKING FOR 21%. SUCH A NADELLA, THE CEO SCOTT, APPARENTLY HE'S BEEN ON A CRUSADE, HE'S JUST PUSHING THE AI INTO EVERY CORNER OF THE BUSINESS. WELL, LOOK AT THIS IS NOT ALL THAT DISSIMILAR FROM ONE SIDE TO NATO BECAME CEO. >> I'M A DECADE AGO AND HE REORIENTED THE ENTIRE COMPANY AROUND CLOUD AND MOBILE AND THAT OBVIOUSLY NOT JUST PRESSURE, BUT VERY SUCCESSFUL. BUT I THINK HE'S PROBABLY TRYING TO DO SOME LIKE SOMETHING VERY SIMPLE WORK AS IT PERTAINS TO AI. YES, POINT OUT, YOU KNOW, DAN WAS REFERENCING THE COMPARISON BETWEEN THE PUBLIC CLOUD BUSINESS IS THOSE AS ERTZ AWS, GOOGLE CLOUD REVENUES INCREASED OVER WHICH I THINK ALSO MARKED ACCELERATION. GOOGLE CLOUD INCLUDES SOME THINGS OTHER THAN GOOGLE CLOUD PLATFORM. I THINK IT'S FAIR TO SAY THAT GOOGLE CLOUD PLATFORM HAS BEEN GROWING AT GREATER RATE OF GOOGLE CLOUD. SO WHAT'S INTERESTING IS YOU COULD SEE A SITUATION WHERE YOU'RE LOOKING OVER 30% FOR THE NUMBER 2 AND NUMBER 3 IN THE PUBLIC CLOUD CATEGORY, PROBABLY PUTS A LITTLE BIT MORE OF WRITER BEATING BURNING SPOTLIGHT ON AMAZON AWS SPECIFICALLY TO DELIVER THERE. GUYS, IT LOOKS LIKE IT'S A HISTORIC DAY GOOGLE HAS DECLARED ITS FIRST DEVON. AND WE FINALLY GOT THAT. >> HER, LET'S CHECK IN ON ALPHABET SLASH GOOGLE AFTER HOURS. AND WE DID SEE THE STOCK MOVING UP, SOMETHING LIKE 13% AT ONE POINT AND ABET PRETTY BIG EARNINGS BEAT FROM ALPHABET AS WELL. YEAH, THAT STOCK UP 13% RIGHT NOW. FIRST-EVER DIVIDEND AND A 17 BILLION DOLLAR BY A BUYBACK. SORRY, I JUST WANT TO CHECK IF IT'S IN RECORD TERRITORY YET. GOOD. ALL OUT OF THAT RECORD TERRITORY. NOW THE PREVIOUS HIGH WAS ABOUT 162 DOWN FROM THE LITTLE YOU'VE HEARD DOESN'T SOUND GOOGLE DELIVER DOES WELL IN THIS QUARTER. >> I MEAN, AS YOU MENTIONED BEFORE, THEY HAD A TOP LINE BEAT IN REVENUE. THEY BEAT EARNINGS PER SHARE. I THINK THAT YOUTUBE NUMBER THAT YOU READ OFF WAS A SLIGHTLY OVER A BILLION AND US TRYING TO RECALL FEE OUT REVENUE. YES. YEAH, IT WAS ABOVE. YEAH, THAT WAS ABOVE EXPECTATIONS, WHICH AGAIN IS A VERY STRONG READ. A NUMBER COMING OUT OF THEM DUE TO ABOUT A LITTLE BIT OF SLOW DOWN IN GROWTH IN SUBSEQUENT QUARTERS. BUT NOW IT'S REACCELERATING. ALSO ANDREW FREE GO BACK TO THE 4TH QUARTER OF 23. WE HAVE TO REMEMBER THAT ALPHABET, IT MISSED ON ADVERTISING REVENUE SLIGHTLY. IT WAS LIKE, YOU KNOW, THEY GREW 11%. THE STREET WAS LOOKING FOR 12 AND THEY THEY KNOCKED THE STOCK DOWN. WE'RE IN THIS INSTANCE, IT LOOKS LIKE WE'RE SEEING A REINVIGORATION IN TERMS OF YOUTUBE AD REVENUES AND AD REVENUES, WHICH IS VERY STRONG. AND AS WE'RE TALKING ABOUT EARLIER, LOOKS LIKE GCP BEAT, WHICH SHOWS AGAIN, IT KIND OF A REACCELERATION FROM THE GROWTH RATE THAT WE SAW IN THE 4TH QUARTER, WHICH IS AROUND 25%. SO WE KIND OF GO DOWN ALL THE MATRIX. WE'RE LOOKING AT AD REVENUES YOU TO GROWTH. GCP AND THEN YOU HAD A DIVIDEND ON TOP OF THAT, IT LOOKS LIKE ALL GOOD NEWS FOR ALPHABET ON THIS QUARTER, WHICH IS KIND OF CONTRADICTORY. WHAT WE SAW LAST NIGHT, RIGHT? ANDREW WITH META GOOD WASN'T WASN'T AS WELL RECEIVED STOCK GOT KNOCKED AWAY IT'S INTERESTING TO SEE THE RECEPTION WE'RE GETTING OUT OF OUT OF THAT BECAUSE THEY BOTH MAKE MONEY BASICALLY DOING THE SAME THING, SELLING AD REVENUES THAT DIGITAL OUT. HAHA. >> SCOTT WILL DECIDE ABBREVIATION USED GCP WHAT WAS ASKED. >> YEAH, THAT'S GOOGLE CLOUD YEAH. YEAH. YEAH. SORRY ABOUT THAT. BONO. KNOW WHAT ARE YOUR THOUGHTS ON, ON, ON OUR STORY ON IS POISED TO RI RI THE AI WAVE OR IS A I IT? MICROSOFT USES EFFECTIVELY IN ITS SEARCH BUSINESS, A NATIONAL THREAT TO GOOGLE. SO LOOK, IT'S A LITTLE BOESCH, BUT I THINK ONE OF THE THINGS THAT WE HAVE CONSISTENTLY HEARD >> FROM EXPERTS THAT WE SPEAK IS THE FACT ONE HAND, THERE DEFINITELY IS HEADLINE RISK THE CASH COW FOR OUT THAT SLASH GOOGLE. AND THAT IS, COURSE, THE GOOGLE SEARCH BUSINESS. ON THE OTHER HAND, IT DOESN'T SEEM I KIND TECHNOLOGICAL ADVANCEMENTS AND INTRODUCTION TO TO MARKETPLACE. REALLY HAD SERIAL IMPACT. AND GOOGLE'S MARKET SHARE WORLDWIDE. AND SO THE THOUGHT IS THAT. PERHAPS THIS IS A RISK, BUT IT'S NOT ONE IS A CLEAR AND PRESENT DANGER. LET'S SAY. AND THAT'S OBVIOUSLY BEEN BORNE OUT BY THE RESULTS THAT WE'RE LOOKING AT HERE. WE'RE TALKING ABOUT REVENUE GROWTH 15%, VERY ENCOURAGING. AND ALSO GO BACK TO SOMETHING THAT WE WERE TALKING ABOUT A BIT EARLIER WHICH IS THE FIRST-EVER DIVIDEND. THE COMPANY THAT OBVIOUSLY IS KIND EDITED. ALL ALL RIGHT, DECLARING IT DIVIDEND COMPANY HAS OVER 100 BILLION DOLLARS CASH. AND SO CLEARLY, THEY FEEL FINANCIALLY KIND A STABLE AND HEALTHY TO KIND OF DECLARATION, I THINK TO A LARGE EXTENT. AND THIS IS SOMETHING THAT WE INDICATED PEOPLE KIND REACTED, PERHAPS TO WHAT META INDICATE YESTERDAY AND TALK TO ME WRONG. I'M THERE WAS SOME LEVEL DISCIPLINE DISAPPOINTMENT IN TERMS THE GUIDANCE, BUT REALLY IT WAS BECAUSE OF THE ELEVATED EXPECTATIONS, NOT ONLY AROUND BUT AROUND MARCH. I THINK THAT'S REALLY WHAT PEOPLE WERE FOCUSED MEANWHILE, NOW YOU HAVE BOTH OF THESE ALPHABET AS WELL AS INDICATING STRONG KIND OF PERFORMANCE FROM GROWTH PERSPECTIVE, BUT ALSO MAINTAINING A LEVEL OF DISCIPLINE IN TERMS OF THINGS LIKE MARGINS. YEAH, IT'S INTERESTING. YEAH, NOT THROWING MONEY INTO INTO GROWS. SCOTT. I THINK WE HAVE TO TAKE OUR LEAVE OF YOU. THANK YOU VERY MUCH AS ALWAYS. GREAT. GETTING YOUR INSIGHT THAT SCOTT KESSLER, A GLOBAL SECTOR LEAD FOR TECHNOLOGY, MEDIA AND TELECOM AT 3RD, A BRIDGE. >> THOUGH WE CAN HANG ONTO YOU. DAMN, I THINK FOR A LITTLE BIT LITTLE BIT LONGER. AND THANK YOU VERY MUCH BECAUSE DAN MORGAN, SENIOR PORTFOLIO MANAGER AT SYNOVUS TRUST. I'M JUST LOOKING AT THE NUMBERS HERE FROM INTEL. AND THE HEADLINE IS THAT THEY'VE COME OUT WITH WEAK GUIDANCE OUR WE, I THINK IT'S WE CABIN PROFIT GUIDANCE ON THEIR CURRENT QUARTER THERE Q2 QUARTER. THE STOCK IS DOWN AROUND AT 6%. THEY COME OUT WITH OUR Q1 NUMBERS BUT THEY SEE Q2 REVENUE AS LOW AS 12.5 CONSENSUS IS 13.6 AND THEY SEE THEIR PROFITS AND Q2 PRETTY WEAK ONLY ABOUT $0.10 AND THAT WILL BE LESS THAN HALF OF WHAT THE CONSENSUS IS SO AND TELL IT LOOKS DISAPPOINTING. STARTING IN THE CURRENT 3 MONTHS. >> NOW TESTING AND REAR BECAUSE IT'S VERY SIMILAR WOULD HAPPEN IN THE 4TH QUARTER WHEN THEY RELEASED NUMBERS, THEY BEAT ON THEIR EARNINGS AND THEY BURIED ON THEIR BUT THEN THEIR FORECAST GOING INTO THIS QUARTER WAS BELOW WHAT THE STREET WAS LOOKING FOR. AND NOW WE GO INTO THIS CLOSE ON THIS 1ST QUARTER. 24, THEY HAVE A BEAD ON TOP AND BOTTOM LINE THAN THEY GUIDE FOR THE 2ND QUARTER BELOW IT, YOU KNOW, TO BE HONEST WITH THE ANDREW, IT'S NOT THAT SURPRISING. THINK ABOUT THE TRANSITION THAT REALLY ENTAILS GOING THROUGH RIGHT NOW. THEY HAVE A COUPLE NEW AI CHIPS THAT WE'VE TALKED ABOUT BEFORE THEY HAVE THE FALCON SHORES, THEY HAVE THE GALA D 3 THAT THEY JUST ARE RELEASED A COUPLE WEEKS AGO. THERE'S SOME EXCITEMENT SURROUNDING THAT IN THEIR ABILITY TO COMPETE AGAINST NVIDIA. AND WE'RE MAKING THAT HUGE TRANSITION RIGHT TO BECOMING ONE OF THE TOP FOUNDRIES IN THE WORLD TO COME. PEOPLE LIKES AGAINST TSMC, TAIWAN SEMICONDUCTOR GLOBALFOUNDRIES AND THEY'RE EXPECTED TO BUILD THESE HUGE CHIP MAKING A MANUFACTURING FACILITIES THROUGHOUT NORTH AMERICA. CANADA, U.S. EVERYWHERE AND IT COSTS A LOT OF MONEY AND THEY'VE ALREADY COME OUT AND SAID THAT THEY ARE GOING TO CONTINUE TO POST LOSSES FROM THAT FOUNDRY UNIT IN 2 TO 20, PROBABLY 2025 NOT EVEN LOOKING FOR THAT TO BREAK EVEN 2030. SO I THINK WE'RE SEEING ANDREW IS A MIXTURE OF A LOT OF DIFFERENT THINGS, REALLY DRAGGING DOWN THOSE INTEL NUMBERS, WAITING FOR THOSE NEW AI CHIPS TO COME OUT SO THEY CAN COMPETE BETTER AGAINST NVIDIA AND AMD. AND THEN OF COURSE, THIS HUGE AMOUNT OF MONEY THEY'RE SPENDING TOWARDS BUILDING OUT THESE FOUNDRIES IN THE AMOUNT OF LOSSES THAT THEY'RE TAKING TO TO, TO ACHIEVE THAT. SO I KNOW WE'VE TALKED ABOUT THIS BEFOREHAND OR THE PAST GUARD, BUT IT DOES FOUNDRIES.
