Current Price: $254 Price Target: Raising to $290 (from $255)
Position Size: 7.7% TTM Performance: 49%
Key takeaways:
- Broad beat with 19% YoY revenue growth. Despite beat, stock trading off a bit after hitting an all-time high ahead of earnings.
- Azure continues to be key growth driver – Azure continues to take share in the public cloud with revenue ahead of expectations at +46% YoY in constant currency. A slight deceleration from +48% last quarter.
- Teams strength – users doubled to 145M monthly active users.
- CEO, Satya Nadella said, “Over a year into the pandemic, digital adoption curves aren’t slowing down. In fact, they’re accelerating and it’s just the beginning. Digital technology will be the foundation for resilience and growth over the next decade. We are innovating and building the cloud stack to accelerate the digital capability of every organization on the planet.”
More details to come…
Sarah Kanwal
Equity Analyst, Director
Direct: 617.226.0022
Fax: 617.523.8118
Crestwood Advisors
One Liberty Square, Suite 500
Boston, MA 02109