Microsoft relies on cloud and AI data centers (Photo: Freepik)
Redmond – Block, don’t spill – that’s the motto in the race for AI supremacy. Microsoft even has a core reactor reactivated for this purpose. The Windows company has good cards when it comes to AI, but the bet carries risks. Today the tech giant invites you to the general meeting.
Microsoft's stock price increase of 18.18 percent in 2024 will not come close to that of Apple or Amazon. Yesterday at the start of the stock exchange, the stock was quoted at 440.84 US dollars (3:30 p.m. CET). The Windows Group will pay a dividend of $2.93 per share in 2024, and distributions have been rising for 21 years.
+++ Livestream Microsoft action meeting +++
Microsoft is holding the shareholder meeting virtually; the company is making the webcast available at virtualshareholdermeeting.com/MSFT24. Shareholders can also follow the Annual General Meeting via Microsoft Teams at microsoft.com/investor. Video and audio documentation will then be provided there. For the question time, shareholders can submit questions in advance via Proxyvote.com. Live questions are possible in the webcast.
But with the mega-investments in AI, shareholders are now becoming uneasy: Will it pay off? In the last quarter, Microsoft spent around $20 billion on artificial intelligence. The money will flow primarily into data centers and AI chips, of which there should be around 1.8 million by the end of 2024.
The AI-related and dynamic cloud business with the Azure platform is the focus of the quarterly figures for July to September 2024: At 33 percent, sales rose more than expected. And the increase in total sales also exceeded analysts' estimates at 16 percent.
Data Center Delivery Issues Challenge – Cybersecurity
The downside: The forecast for the current quarter is weaker than expected. Microsoft expects sales of between 68.1 and 69.1 billion US dollars; observers had expected an average of 69.83 billion US dollars. Reason according to Microsoft: Deliveries for data centers are delayed.
Another problem was the IT disruptions in July at airlines, clinics and banks that worked with Microsoft products. Security partner Crowd-Strike played a key role. CEO Satya Nadella has now declared a “cultural change” when it comes to security and launched the Secure Future Initiative.
Nadella foregoes salary – Microsoft should buy Bitcoin
Hardly surprising: Microsoft boss Nadella is one of the highest paid managers in the world. He will receive $79.1 million in total compensation in 2024, with shares accounting for $71 million. Nadella gave up $5.2 million in salary because of cybersecurity issues.
In the run-up to the shareholders' meeting, the voting point “Evaluation of an investment in Bitcoin” generated a strong media response – it was submitted by a conservative think tank. Accordingly, Microsoft should also invest its assets in Bitcoin. The board refused: Crypto investments had already been examined.
Disclaimer:
All information is provided without guarantee that it is complete, correct and up-to-date. The text does not constitute trading recommendations or investment advice.
