원문 보기
And now it seems like we've reached a point where it's not just investors in the debt markets, which I also mentioned. The debt markets have gone a little crazy with the yields that are currently on, say, CoreWeave debt and some other cloud companies. But even the big players, even Alphabet, have $265 billion in cash on their balance sheets as of the last quarter.
They don't need to raise funds. Their debt is not really a problem. But the market says, "You now have negative free cash flow." We don't really like it." “Whereas Microsoft has positive free cash flow. It reminds me a bit of Apple over the last few years. They seem to be forgiven because they say, “You know what?
We'll just wait out this crazy investment cycle. We'll just keep collecting money from the people who buy iPhones every year. We will have a great business ." “And this stability was the argument that investors voted for . And now investors seem to be saying, " Hey, forget about this growth." Where is the stability?
Well, look, Apple has never been a pioneer, even though it may seem like it isn't . They let others test the market and spend risky money, and then they improve it. They did it with products, right? We saw it. So , their business model is a little different. As for Microsoft, they have improved their approach somewhat.
Microsoft's free cash flow this quarter was about twice what analysts had forecast. And that was a big positive. Hey, we still spend money, but we also generate it , right? We are starting to see cash flow increase as we simultaneously bring assets into operation. If you look at it, I think there are several things happening at the same time.
A lot of attention is focused on the advertising business, right? Estimates indicate that the operating profit from the advertising business, that is, that part of it... They don't disclose the net advertising figures, but analysts can calculate it. And they estimate that it was about a billion dollars less than the consensus expected.
The other side of the coin, however, is that Google Cloud and that part of the business, as you said, where revenues have doubled. It is much smaller than Azure . Which partly explains the growth rate. Operating profit there increased by about a billion dollars. For me, this is a certain consolation, because among the big players in the advertising market, Google is the most vulnerable and most at risk of undergoing disruptive changes.
And it's clear that Alphabet's management isn't afraid to change its advertising business . The market doesn't like that this seems to be happening at an accelerated pace. There are a few things happening that I think the markets are ignoring. Last time I checked, YouTube was a great business, relatively resilient to AI , as its advertising model isn't as impacted as Google Search.
But I think the market is just surprised that advertising revenue has suffered; it's still growing, that's the thing, it's still growing. The figures are simply not what analysts expected, and this has raised some concerns, which, in my opinion, are unfounded. Want to receive this every day? Find hidden investment gems on Apple Podcasts.
Comments 0