Bulls wanted to see faster growth in Microsoft's lucrative cloud computing business. Bears say Microsoft's reliance on OpenAI is an underappreciated risk.
Microsoft beat its own forecast. The “Black Monday” market crash in October 1987, when the Dow plunged more than 22%. The antitrust ruling against Microsoft in April 2000, when a federal judge declared the company a monopolist.
Investments in artificial intelligence and rapid growth in its cloud platform are boosting Microsoft. Netflix is enjoying great success from its advertising -- while trying to buy Warner Bros.
The market seems to be increasingly punctuated by notable volatility spikes, while the broad indices (and AI names) struggle to justify their valuations. This is the necessary setup for covered call ETFs to come in and shine. However, there is a huge caveat (not that visible risk), which, if not properly considered, might lead covered call investors to be disappointed.
Microsoft Azure is key to training and developing AI models. Microsoft is strengthening and further monetizing its enterprise tools by adding and charging for AI capabilities.
OpenAI and Anthropic are both witnessing meteoric surges in consumer and enterprise use. As AI workloads increase, demand for computing capacity is on the rise.
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