The Investor Channel on $MSFT (Oct 30, 2026)

Big technology companies were hit hard this week with the release of earnings results from Microsoft, Google and Amazon.

Where your advertising services are growing at only 12%. This is the growth rate of Microsoft's advertising activity, which we will discuss shortly. This is not good. When your advertising business grows at the same rate as Microsoft, that's not a good sign.

Moving on to Microsoft. The week began with the stock at levels around 525. The stock fell slightly, but made a good rise after the company announced its earnings, which we will review shortly.

The company's first quarter forecasts exceeded estimates in both revenue and profit. There were also strong revenue guidance for the upcoming fourth quarter. There were also strong revenue guidance for the upcoming fourth quarter .

Microsoft is not standing idly by while Amazon, Google, and Meta are raising funds without it taking any action. They sold more than $25 billion worth of bonds one day after their cloud computing unit, Azure, outperformed expectations across the board.

One thing I use in this tool, "Yahoo Alpha," is that I asked "Yahoo Scout": "How much did Microsoft raise from the bond market this week? At what interest rates? You will see figures ranging from 5.2% to 6.25%."

Sometimes, when Microsoft issues bond deals, you know they're going to be investment grade, but for some smaller companies raising money, they go far beyond that. They have just raised $25 billion at extremely low interest rates compared to the yield on 10-year Treasury bonds.

The company also announced its earnings, and overall, it was a fantastic quarter by all accounts. Microsoft's revenue reached $92 billion. What I really noticed is that they did a good job of controlling costs across all sectors.

As for research and development, yes, it has increased slightly. We see an increase in research and development spending at all these companies, but sales and marketing expenses have remained constant.

Your administrative and general expenses have remained essentially unchanged.

Thus, you have gone from about $38 billion in operating income last year to about $36 billion.

Net income slowed to $36 billion. Moving on to the balance sheet, the recent bond sales won't show up, so you need to take that into account for now, or at least based on what we're seeing right now. The company still has ample cash reserves.

It is clear from looking at the cash flow statement that they continue to expect to achieve positive free cash flow by fiscal year 2027. And now, this was the beginning of fiscal year 2027 for Microsoft.

The company generated $58 billion in operating cash flow, and I say "only" considering what we've seen at Google, and especially considering what we've seen at Amazon.

The company spent only $39 billion on property, factories, and equipment. They attributed it to some delays related to data centers.

We are already seeing this happening in all areas. There are setbacks in completing these data centers. Not necessarily from a chip perspective, and not necessarily from a memory perspective or that part of the supply chain.

I wouldn't say things are going smoothly and clearly. It's a crowded situation like we've never seen before. But the busier thing is actually running these data centers.

Overall, Microsoft's results have been excellent, and it is appreciated by Wall Street for being more financially prudent than Google and Amazon. Microsoft is pressing the accelerator pedal, but it's not fully depressed all the way down.

Currently, Wall Street is rewarding Microsoft's cautious approach , but I believe other companies will eventually catch up.

Over the past year, we have seen Meta, Microsoft, and Google sign deals with emerging cloud providers such as Nebulus, Iran, InScale, and TerraWolf, among many others.

What they can do is secure very profitable graphics processing unit prices, at least at current prices.

Although the growth rates in the cloud, Azure, and Amazon Web Services (AWS) are incredible. If this continues for the next decade, I think those companies will definitely surpass Apple, but for now, investors appreciate the security that Apple provides.

Microsoft is quietly settling at record levels. The company achieved record levels dating back to last year, or sorry, 2025. We're back in the 550 range, and the stock is simply fluctuating there .

This is what Microsoft was doing at this time last year, and early this year, struggling to make its way. Then, once you do that, boom , you launch straight ahead. That's why these dips are considered great opportunities.

Once you've moved beyond these moving averages, look to Microsoft; they all offer support. Now, breaking through the 540 range will be a difficult task.

It is clear that the company is raising funds and continuing to invest in the "Azure" field, but so far everything is fine. It looks very good.