COLT VIRAL

Category: Technology

  • Microsoft’s earnings came amid growing concerns about slowing profits in its education business

    Microsoft (MSFT.O) Open in new tab When the technology group reports earnings on Tuesday, investors will face one big question: Is the growth of its Azure cloud computing business worth it? Spending billions of dollars to build AI infrastructure? Microsoft is said to be the first company to make money in artificial intelligence thanks to its partnership with ChatGPT developer OpenAI, and it is expected to show the growth of the Azure quarter soon. That figure dropped to 31% between April and June, according to Visible Alpha Data.

    This was in line with the company’s forecast, but investors had expected a bigger contribution from the artificial intelligence business in the fiscal fourth quarter, which accounted for 7% of Azure’s growth in the first three months of the year. A survey of 16 analysts conducted by the London Stock Exchange Group (LSEG) predicts that Microsoft’s capital expenditures will increase by 53% annually to $13.64 billion over the period. That’s a big increase from last year’s $10.95 billion in federal spending. In signs of optimism on Wall Street, US stocks were weighed down by concerns that tech giants’ investments in data centers will not pay off in the short term. The way plants are planted.Shares of Google parent Alphabet ( GOOGL.O ) fell more than 5% last week after the company reported monthly earnings that missed expectations. $1 billion, as AI profits continue to grow, thanks to acquisitions by major tech companies.

    Executive Chairman and CEO of Microsoft Corporation Satya Nadella looks on at the Presidential Palace as he is scheduled to meet Indonesian President Joko WIdodo, in Jakarta, Indonesia, April 30, 2024. REUTERS/Willy Kurniawan

    Alphabet said monthly capital spending will remain at $12 billion or more through the remainder of 2024.– Investors are very concerned about Microsoft’s ability to continue to accelerate revenue growth, especially in businesses related to artificial intelligence. “If revenue growth can’t keep up with spending, investors may be disappointed,” said Gil Luria, chief software analyst at Microsoft in Davidson. Microsoft said it now needs to invest in data centers to overcome capacity constraints that are hampering its ability to harness the needs of artificial intelligence.

    He shares that vision with other tech companies, including Alphabet. Sundar Pichai, CEO of parent company Google, said last week that “the risks of investing too little [in AI infrastructure] are greater than the risks of investing too much.”

    – Great location –

    The increased spending will allow Microsoft to capture more business from its large enterprise customer base by offering broader access to its artificial intelligence cloud services and launching features such as the 365 Copilot Assistant for Word and Excel.Microsoft says that half of the Fortune 500 companies use its $30-a-month Copilot service, which can condense large volumes of emails into a few key points or quickly complete them. checklists. Computer code.

    However, the technical group of Redmond, Washington did not reveal the financial contribution of the service, and analysts believe that the impact of Copilot will become clearer in the second half of 2024. Think from the customer’s side – More Companies have access to apps like ChatGPT, Microsoft stays active by using its integrated platform.

    Microsoft shares have risen about 13% this year, adding more than $350 billion to the company’s market value. The spot hit an all-time high on July 5, but has fallen nearly 9% amid a recent technical selloff. This performance has outpaced the S&P 500’s gain of 14.5% this year. The company said it grew 14.6% between April and June, compared to a 17% increase in the previous quarter. This is primarily due to the slow growth of the PC business, including the Windows and Xbox gaming divisions. The products business – home to the Office suite, LinkedIn and 365 Copilot – is expected to grow 10%

  • AI fever is driving Nvidia to become the world’s most valuable company

    NEW YORK: NVIDIA has become the world’s most valuable company thanks to a staggering rise in its share price, highlighting how investors believe artificial intelligence will play a huge role in the global economy in the coming years. Nvidia shares rose 3.5% on Tuesday (June 18), giving it a market capitalization of about $3.34 trillion. The semiconductor pioneer overtook Microsoft and Apple, which had been vying for the top spot in recent days.

    Nvidia’s rise in market value has been driven by demand for its chips, which represent the gold standard in artificial intelligence (AI). The company’s shares have risen more than 170% this year and are up about 1,100% from their lows in October 2022. The staggering profits and growing investor enthusiasm for AI are fueling Nvidia’s recovery. This enthusiasm is reflected in the company’s market value, which rose from $2 trillion to $3 trillion in just 96 days. Microsoft, one of the other two companies to reach those lofty heights, took 945 days to jump from $2 trillion to $3 trillion, while Apple took 1,044, according to Bespoke Investment Group.

    Only 11 U.S. companies have held the top market cap position by closing price since 1925, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. For the former front-runners, fortunes have diverged in recent decades. Microsoft rose to the top in the late 1990s, but its shares languished for years in the early 2000s after the dot-com bubble, before rebounding strongly in the latter part of the decade. ExxonMobil became the world’s most valuable company in the 2000s, but its shares fell as oil prices fell. For some, Cisco is a warning sign. The company’s shares peaked at more than $80 in March 2000 at the height of the dot-com boom, and investors often gave Internet-related companies dizzying valuations.

    Bespoke analysts recently compared Cisco’s developments to those of Nvidia, whose products were seen as essential to supporting Internet infrastructure. “NVDA is performing incredibly well, but the company must continue to grow from here and fend off competition for the stock to continue delivering superior returns,” Bespoke said in a recent note. Right now, NVIDIA’s profits are supporting the stock. Revenues have more than tripled in the most recent quarter, now reaching $26 billion, while net income has increased seven-fold to $14.9 billion.

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    Revenues are expected to nearly double to $120 billion this fiscal year, and are expected to grow another 33% to $160 billion in fiscal 2026, according to LSEG data. Despite the stock’s rise due to Nvidia’s impressive financial performance and forecasts, the stock valuation has fallen by several measures. For example, NVIDIA’s price-to-earnings ratio was recently 43, according to LSEG Datastream. That’s higher than the level of 25 it started the year with but lower than it reached for most of last year. By comparison, the S&P 500’s price-to-earnings ratio is 21. While NVIDIA has been a standout performer, it’s not the only stock benefiting from excitement about AI’s potential profitability. Shares of other technology companies, including Supermicro Computer Inc. and Arm Holdings Inc., have also soared this year.

  • Apple will stop offering instant purchase loans in the US.

    Apple said it will end Apple Pay Later credit, which allows customers to buy products online and pay in four interest-free installments up to $1,000. Apple said Monday it has stopped offering credits through Apple Pay Later, the instant purchase program it launched last year.

    The move comes after Apple said it will allow installment loans in the Apple Pay checkout process later this year through credit and debit cards from third-party companies such as Affirm and issuers such as Citigroup. Apple said it will end Apple Pay Later credit, which allows customers to buy products online and pay in four interest-free installments up to $1,000.

    The adoption shows that not every new fintech feature or product that Apple brings to market is successful or fits into the iPhone maker’s overall strategy. “Starting later this year, users around the world will be able to access credit and debit cards, as well as installment loans offered through financial intermediaries, when they pay with Apple Pay,” an Apple spokesperson told CNBC.

    “With the launch of this new global installment loan, we will no longer be offering Apple Pay Later in the US.” Apple said that users who want installment plans at checkout will be able to access them in more countries around the world through other financial intermediaries, rather than through Apple Pay Later, which was only available in the US.

  • Global stocks rise, Europe Calm

    Global shares edged higher on Tuesday as a tense calm spread across Europe, with traders awaiting comments from a host of U.S. Federal Reserve officials, but the Australian dollar strengthened after the central bank kept interest rates unchanged and warned of inflation. The European stock index STOXX 600 rose 0.2 percent, while the French benchmark index (.FCHI) was unchangedOpens in a new tab, spreads on German and French government bonds narrowed and the euro held steady.

    This marked some stabilization after French assets slumped last week after President Emmanuel Macron’s sudden decision to call a general election left investors worried that parliament would be taken over by far-right forces. “Markets have calmed down following last week’s French bond action and we’ve heard comments from (far-right leader Marine) Le Pen that she respects French bonds,” said Lee Hardman, senior currency strategist at MUFG. “But our overall view remains the same: we believe the euro will continue to price in a political risk premium ahead of the election,” he said. The European common currency recorded a small gain against the pound but was last down 0.1 percent to $1.0722 against the dollar.

    The spread between French and German 10-year government bond yields, a measure of the risk premium on French government bonds, narrowed to 72 basis points after hitting 82.34 basis points on Friday, the highest since February 2017. Also in France, supermarket group Carrefour (CARR.PA) shares fell as much as 9.6% after French media reported that the finance ministry had imposed a “record fine” on the company for its management of its franchise network. . Earlier in the day, Asian shares rose <.MIAPJ0000PUS(.N225) following Monday’s gains on Wall Street, with the MSCI World Index up 0.14%, not far from last week’s record high. “A robust economy, rising corporate profits and optimism about the possibility of interest rate cuts starting to come into effect supported stocks, defying concerns that the gains were concentrated in a few mega-cap tech stocks,” Westpac economist Jameson Coombs said. U.S. S&P 500 and Nasdaq futures traded on either side of the zero line on Tuesday.

    Central Banks The Reserve Bank of Australia kicked off a busy week for central bankers. As expected, the Fed kept interest rates unchanged at a 12-year high of 4.35 percent on Tuesday, but warned there was still reason to be cautious about inflation risks, giving markets few clues about its future trajectory.The Australian dollar was last changed to $0.6609. “Uncertainty was again a key theme in the (RBA) statement,” Commonwealth Bank of Australia economists said. “The bottom line is that the board is making every effort not to make future projections, given the economic indicators to the contrary.” The central banks of Norway, the UK and Switzerland also meet this week. It is expected that the first two will hold interest rates steady, with the Swiss National Bank easing by another 25 basis points.

    More than six Fed speakers are on the agenda in the US on Tuesday, and they may provide further guidance on the US interest rate outlook following last week’s monetary policy decision. Futures currently suggest the Fed is pricing in around 45bp of rate cuts by the end of 2024. US retail sales are also expected later in the day. The 10-year U.S. Treasury yield was stable at 4.29%, and the dollar strengthened against the euro as well as the British pound and the Japanese yen. Elsewhere, oil prices fell, with Brent crude futures down 0.46% to $83.87 a barrel. Spot gold prices fell 0.3% to $2,312 an ounce.

  • Customer says his new Note 7 phone burst into flames

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