MSFT - Embedded Expectations Analysis - 2018 03 02
ï€ Microsoft Corporation (MSFT:USA) currently trades near historical highs relative toUAFRS-based (Uniform) Earnings, with a 27.0x Uniform P/E, implying fairly bullish expectations for the firm. However, management has concerns about industry trends, growth, and revenues
ï€ Specifically, management may lack confidence in trends related to the intelligent cloud and intelligent edge, and may be exaggerating the impact of Microsoft 365 and Dynamics 365 on growth and workplace transformation. Additionally, they may lack confidence in the value proposition of Azure IoT Edge, and may have concerns about the sustainability of viewer growth in their Mixer streaming service. Moreover, they may lack confidence in OEM Pro revenue and non-Pro revenue continuing to be impacted by similar dynamics as seen in Q2 going forward, and may be exaggerating their expectation for Surface revenue to grow year-over-year as a result of continued launch momentum from the latest Surface Pro, Book and Laptop
Microsoft is a technology company. The company develops and supports software, services, devices, and solutions. The company provides an array of services, including cloud-based solutions as well as solution support and consulting services. The company also delivers relevant online advertising. The company's products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; and video games. The company also designs, manufactures, and sells devices, including personal computers, tablets, gaming and entertainment consoles, other devices, and related accessories.
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