this post was submitted on 30 Jan 2026
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My biggest impressions from the article

Microsoft shares slid about 10% on Thursday following an earnings report that disappointed some investors, prompting the stock’s sharpest daily decline since March 2020.


Microsoft’s finance chief, Amy Hood, argued that the cloud result could have been higher if it had allocated more data center infrastructure to customers rather than prioritizing its in-house needs.

“If I had taken the GPUs that just came online in Q1 and Q2 in terms of GPUs and allocated them all to Azure, the KPI would have been over 40,” she said.


Analyst Ben Reitzes of Melius Research, with a buy rating on Microsoft stock, said during CNBC’s “Squawk on the Street” on Thursday that Microsoft should double down on data center construction.

“I think that there’s an execution issue here with Azure, where they need to literally stand up buildings a little faster,” he said.

LMAO, the analysts and C level execs are going to accelerate the fall of Micro$lop.

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[–] bitjunkie@lemmy.world 1 points 4 minutes ago

Do you mean that Windows Copilot AI Extra Spyware Edition wasn't a smashing success, despite literally everyone who isn't a buzzword-spouting CEO telling them this would happen for like a fucking year?

[–] ShinkanTrain@lemmy.ml 3 points 36 minutes ago
[–] Binturong@lemmy.ca 10 points 1 hour ago

I'm still on the fence as to whether their current CEO is just a complete business illiterate, or some kind of corporate Manchurian candidate... It's sure LOOKS like malicious mismanagement to me, a nobody pleb.

[–] ZoteTheMighty@lemmy.zip 2 points 39 minutes ago

Glad to finally see some uplifting news this month.

[–] plyth@feddit.org 3 points 59 minutes ago

Microsoft should double down on data center construction.

Yes, Microsoft should invest big in hardware!

[–] mintiefresh@piefed.ca 16 points 2 hours ago (1 children)

It's actually insane how much money these companies have.

[–] tal@lemmy.today 5 points 1 hour ago* (last edited 1 hour ago) (1 children)

Ehhh...that's their market capitalization, not their cash on hand.

The market capitalization is just what the company is worth, based on what investors are currently willing to pay for ownership of shares in the company.

EDIT: Here's Microsoft's cash on hand:

https://www.macrotrends.net/stocks/charts/MSFT/microsoft/cash-on-hand

Looks like about $100 billion.

[–] avidamoeba@lemmy.ca 3 points 1 hour ago

They can turn their market cap into liquid cash by borrowing against it. They can also pay directly in stock. E.g. how some pay their employees with more stock than salary. They can use their stock to buy other firms. The stock price and therefore market cap is not just an abstract number.

[–] Bwaz@lemmy.world 2 points 1 hour ago

Might've been partly because of the Melania movie's generation and how weak, unsmart and unwise it makes Apple look.

[–] Jack_Burton@lemmy.ca 50 points 3 hours ago (2 children)

“If I had taken the GPUs that just came online in Q1 and Q2 in terms of GPUs and allocated them all to Azure, the KPI would have been over 40,” she said.

"If I had bet on black instead of red I would have won"

[–] ignirtoq@feddit.online 13 points 2 hours ago

I think she's saying she could have allocated the GPUs to Azure to game the metrics, but Microsoft chose to allocate them to internal projects, which is a form of self-investment. She's not saying they made the wrong decision, she's saying their decision in this longer-term investment makes the short-term metrics worse.

[–] sorghum@sh.itjust.works 4 points 2 hours ago

If ifs and butts were candy and nuts we'd all have a merry Christmas.

Everything above pennystock value is still to much for µ$lop stock!

[–] Goodlucksil@lemmy.dbzer0.com 26 points 5 hours ago

$357 billion is between the total GDPs of Finland and Sri Lanka

[–] Arghblarg@lemmy.ca 84 points 7 hours ago (7 children)

Oh no. Anyway...

Make Windows 7 again (or just use Linux), ditch AI, value your users. Sack the CEO. Pretty simple.

[–] Jesus_666@lemmy.world 8 points 1 hour ago (2 children)

Or double down on AI. Then double down even harder.

  • Make the use of Copilot mandatory; simultaneously heavily monetize it to instantly turn the AI division into a profit center.
  • To that end release the successor to Windows 11, a cloud-only offering that replaces the taskbar with a Copilot instance which launches programs for the user. Downplay any accusations that the new Windows Live 365 With Copilot is just a rental Windows 11 with the taskbar hastily hacked out.
  • Don't forget that Windows Live 365 With Copilot does not include a subscription for Copilot, which must be booked separately.
  • Get all of your customers to switch by immediately dropping support for all previous Windows versions, "migrating" their support windows over to Windows Live 365 With Copilot. Corporate customers, which have gone all-in on Azure, will need years to migrate off the Windows ecosystem, which means excellent short-term revenue.
  • Make sure that Windows Live 365 With Copilot can only save to OneDrive to make it maximally hard for those customers to get their data out.
  • Hope that the current world order disintegrates before the massive exodus of customers ruins the company.
  • Whether or not it does, turn off your business phone and spend the next five years doing massive amounts of cocaine on a private island in the South Pacific.
[–] wibble@reddthat.com 1 points 45 minutes ago

Solid business plan. Would implement

[–] Dayroom7485@lemmy.world 3 points 1 hour ago

A business plan to rally the crowds behind 💸

[–] anomnom@sh.itjust.works 2 points 2 hours ago (1 children)

I wonder how well a project to secure windows 7 and provide 3rd party security patches would do financially. Whichever country grows the balls to ignore the DMCA could do it and make a lot of people happy.

[–] Taldan@lemmy.world 3 points 1 hour ago

Very few people would use it. You'd have all the issues of Linux where very little is made for the OS, so community made ports would be the only way to get things running. Those downsides are counteracted by the upside of Windows... which is what?

[–] Deceptichum@quokk.au 19 points 6 hours ago (1 children)

Their core users are corporations, not personal households.

[–] rustydrd@sh.itjust.works 3 points 2 hours ago* (last edited 2 hours ago)

Depends on your definition of "users". If "user" means "source of personal information to train AI models" then households absolutely are users. I guess we're entering a world where different users do different things for a company like Microsoft: Corporations buy licenses for OS and software, households and individuals provide data to train the AI models that permeate it all.

[–] kek@discuss.tchncs.de 29 points 7 hours ago (2 children)

This would be great, but unfortunately would not make number go up. That is all they care about now.

[–] Olap@lemmy.world 18 points 6 hours ago (5 children)

I dunno. Windows 11 sales have been crap. People aren't buying new machines due to it. Relaunch 12 as privacy focussed, AI enabled (but optional), and they could see a bounce. Double down on Office, keep a steady improvement on Azure, and see Xbox as a growth opportunity. Microsoft could avoid the AI slump

Notice how Apple have not jumped all in. They are anticipating the storm and are well prepared to weather it out

[–] BarneyPiccolo@lemmy.today 9 points 2 hours ago

Windows 11 sales have been crap. People aren't buying new machines due to it.

Wait until new computers quadruple in price because of data center demands, driven by idiotic AI initiatives nobody wants, and nobody buys new computers.

[–] Awesomejt@lemmy.world 10 points 5 hours ago (1 children)

Apple did jump in but then backed out once it was clear their offering wasn't even close to the competition. Remember their big push on Apple Intelligence and how most of the features they promised never materialised?

While the back-peddalling was embarrassing at the time, I agree that their cautious approach since will probably work out better than Microsoft going forward.

[–] peopleproblems@lemmy.world 6 points 3 hours ago (1 children)

If I had to guess, at least in the past, Apple has typically listened to its engineers. Maybe not as well as like Valve.

[–] W98BSoD@lemmy.dbzer0.com 2 points 49 minutes ago (1 children)

If I had to guess, at least in the past, Apple has typically listened to its engineers.

The AirPower would like a word.

[–] peopleproblems@lemmy.world 1 points 41 minutes ago
[–] Deceptichum@quokk.au 14 points 6 hours ago (4 children)

Windows & Xbox are like 16% of M$'s revenue, they're not that important to the company.

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[–] jjlinux@lemmy.zip 1 points 3 hours ago

The reality is, and I say this with a heavy heart, that Crapple is ahead of everyone else in how to keep the money and stock prices moving in their favor. They 'rent' AI capabilities from OpenAI and Google and put their money where they always have, making new devices, some good developing and fucking over everyone in their walled garden. Microslop, on the other hand, has completely lost its north.

Full disclosure, I fucking hate Crapple almost as much as I hate Microslop, but they evidently know what they're doing. How long they can keep their shit up is another conversation for another time.

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[–] chunes@lemmy.world 19 points 6 hours ago* (last edited 6 hours ago) (3 children)

Someone needs to engineer a virus that removes whatever defect humans have in their DNA that causes civilization-imperiling greed.

[–] BarneyPiccolo@lemmy.today 7 points 2 hours ago (1 children)

It's a few humans with OCD that manifests as financial hoarding. They have more money than they or their descendants could ever spend, and yet they are driven to accumulate more, despite the obvious deleterious effects on society and the world.

If they were hoarding cats, or old newspapers, or rusty cars, etc., we'd step in, get them mental health help, and clean up the mess.

But since it's money, we praise them for their success, and make it easier for them to indulge their mental illness even more. Sometimes we even GIVE them more money for free, just because it makes them so happy.

It's time to stop indulging these lunatics. Take their businesses and fortunes away, we paid for most of it anyway, and put these maniacs in mental health facilities where they belong, at least until they have internalized a healthier attitude toward wealth, and their fellow citizens, and want to use their gifts to improve America, and not exploit it.

[–] ScoffingLizard@lemmy.dbzer0.com 4 points 2 hours ago

It's psychopathy. Maybe combined with OCD?

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[–] Bonifratz@piefed.zip 23 points 6 hours ago (2 children)

Writing this from Linux which I installed last fall in lieu of the Windows 11 update.
I'm still using both OS via dual boot, and I still have some unresolved issues on Linux, but I will fully transition during the course of this year.
One thing that is really mind-blowing is the difference in performance on my ~7 y/o laptop. My Linux Mint is just lightning fast compared to Windows 10. You can quite literally feel how Windows runs a thousand random things in the background (most of which I never asked for) whereas Linux feels very clean and... empty, but in a good way.

[–] mrnobody@reddthat.com 1 points 3 hours ago

Not sticking up for Microsoft, but when you first setup a Windows machine, all those metrics toggled on like advertising and keyboard or handwriting usage, etc, I turn all 6 of those off. One in Windows I now uninstall Copilot and disable stuff like phone link, OneDrive, and pretty much every application from running at startup ( Adobe if needed, etc)

This is just for work, but I can usually get away with lower spec machines by curating what's allowed to run by default.

[–] allriledup@piefed.blahaj.zone 7 points 5 hours ago (1 children)

Nice! I love reading about people ditching winblows. next thing you'll know, you'll be distrohopping in no time. :)

[–] jjlinux@lemmy.zip 5 points 3 hours ago

Ain't that the truth? I feel like Distro hopping is an integral part of falling in love with Linux. In my case, I get distro hopping zoomies every few months 🤣

[–] pulsewidth@lemmy.world 33 points 7 hours ago

The same Melius Finance that gave Tesla stock its highest rating of "must own" due to Elon lying again that Full Self Drive is being deployed imminently to Teslas via their in-house "AI chips" eta Dec 2025?

https://finance.yahoo.com/video/tesla-stock-must-own-melius-220721932.html

Tesla stock is currently at $416 after a high of $474 in November, around when this call was made.

<investors_fell_for_it_again_award.webp>

[–] Asetru@feddit.org 36 points 7 hours ago (3 children)

Is that the bubble beginning to pop?

[–] sorghum@sh.itjust.works 32 points 7 hours ago

Naw, the valuation is still $3.22 trillion. The bigger tell will be the AI only companies start feeling the squeeze.

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[–] AFKBRBChocolate@lemmy.ca 24 points 7 hours ago

I would desperately love for companies to lose big on LLMs. The vast majority of users just don't seem worth the huge energy costs. I do think there are a number of worthwhile ML applications that could make the world better, but I have little faith that they'll be allowed to unless they generate big profits.

[–] Zwuzelmaus@feddit.org 17 points 7 hours ago (1 children)

rather than prioritizing its in-house needs.

I can't help reading this as "AI has cost us this shitload of money"

[–] peopleproblems@lemmy.world 8 points 3 hours ago

That's because it's MBA speech for "AI has cost us this shitload of money."

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