Earnings updates

And $snpx conf call

Earnings update:

Degrees of bad and deciding what’s been discounted is the summary.  Microsoft missed revenue and earnings, probably 50% of the miss was currency but guided double digit revenue growth in the upcoming fiscal 2023.  Azure decelerated to 46% and missed growth by 1% pt due to less customer usage growth (net new customers v strong).  They guided to 43% in constant currency for next quarter, modest deceleration.  Meanwhile $GOOGL saw a very pronounced deceleration in cloud while advertising is weaker but not falling off a cliff like $SNAP.  See below some of the sellside write-ups.  It doesn’t quite feel like the downside to estimates has been de-risked but perhaps some names can find their ”right” valuation during this tumultuous time.  For example, $PG, $KO both grow mid to high single digits, generate big FCF and get 25x P/E for their consistency.  That is right where $MSFT is now, maybe a tough higher.