Microsoft's Cloud Growth Slows

And, Pinterest’s disappointing outlook.

July 31, 2024

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Today is Wednesday, July 31, 2024.

The Early Bird Index today is 70.50.

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PRESENTED BY CLICKPROFIT

Handsfree Passive Income

Did you know you can invest in e-commerce the same way people invest in real estate?

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  • Higher profit margins: When you combine the buying power of hundreds of people, you can drive the cost per unit down. This results in higher margins.

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  • Cheaper Operations: When you partner with a company that owns the supply chain, you get higher margins because you can cut out the middleman tax.

Bottom Line: You can own a portfolio of cash-flowing e-commerce brands by partnering with a leading e-commerce agency.

Microsoft's Cloud Growth Slows

Although Microsoft (Nasdaq: MSFT) posted good financial earnings results on Tuesday, problems in the cloud business caused the stock to tumble 2.72% in after-hours trading.

Financials: Microsoft reported earnings of $2.95 per share in the past quarter and revenue of $64.7 billion; both were better than expected.

Details: Revenue for Intelligent Cloud increased by 19% and revenue for Azure increased by 29%. Good, right? Well, not really. Analysts expected higher growth.

Early Bird’s Nest Egg Gains: Microsoft's cloud growth is slowing in 2024 because many large enterprises have already migrated to the cloud, there’s increased cloud competition, and some businesses are more cautious with their IT spending.

Final Thoughts: Microsoft is up 14% this year thanks to AI. Could declining cloud growth pull the stock down?

Notables

Notable Earnings Today: Meta Platforms (Nasdaq: META), Boeing (NYSE: BA), Norwegian Cruise Line (NYSE: NCLH), Arm Holdings (Nasdaq: ARM), Wingstop (Nasdaq: WING), Qualcomm (Nasdaq: QCOM), eBay (Nasdaq: EBAY), Camping World (NYSE: CWH), Kraft Heinz (Nasdaq: KHC), Carvana (NYSE: CVNA), Etsy (Nasdaq: ETSY), T-Mobile US (Nasdaq: TMUS), MGM Resorts (NYSE: MGM), Altria (NYSE: MO), Lam Research (Nasdaq: LRCX), Fiverr (NYSE: FVRR), Marriott (Nasdaq: MAR), Humana (NYSE: HUM), Mastecard (NYSE: MA), Teladoc (NYSE: TDOC), Western Digital (Nasdaq: WDC), Paramount Group (NYSE: PGRE), MetLife (NYSE: MET), GE HealthCare (Nasdaq: GEHC), Riot Platforms (Nasdaq: RIOT), Marriott Vacations (NYSE: VAC), Generac (NYSE: GNRC), Albemarle (NYSE: ALB), Teva Pharmaceutical Industries (NYSE: TEVA), Goodyear Tire (Nasdaq: GT), DuPont (NYSE: DD), Paycom Software (NYSE: PAYC), Aflac (NYSE: AFL), Alkami Technology (Nasdaq: ALKT), Alphatec (Nasdaq: ATEC), American International Group (NYSE: AIG), Autohome (NYSE: ATHM), AutoNation (NYSE: AN), Avanos Medical (NYSE: AVNS), Bally's (NYSE: BALY), Bausch + Lomb (NYSE: BLCO), BorgWarner (NYSE: BWA), Bunge (NYSE: BG), C.H. Robinson (Nasdaq: CHRW), Cameco (NYSE: CCJ), CareDx (Nasdaq: CDNA), CBIZ (NYSE: CBZ), CDW (Nasdaq: CDW), CGI Group (NYSE: GIB), Cheesecake Factory (Nasdaq: CAKE), Chefs' Warehouse (Nasdaq: CHEF), Clean Harbors (NYSE: CLH), Clearwater Analytics (NYSE: CWAN), CNH Industrial (NYSE: CNH). Cognizant Technology Solutions (Nasdaq: CTSH), Cohu (Nasdaq: COHU), Columbus McKinnon (Nasdaq: CMCO), Compass Diversified (NYSE: CODI), Confluent (Nasdaq: CFLT), CONMED (NYSE: CNMD), Cross Country (Nasdaq: CCRN), Deluxe (NYSE: DLX), Diana Shipping (NYSE: DSX), Energy Recovery (Nasdaq: ERII), Enovix (Nasdaq: ENVX), Entegris (Nasdaq: ENTG), EVERTEC (NYSE: EVTC),  Evolus (Nasdaq: EOLS), Exact Sciences (Nasdaq: EXAS), eXp World Holdings (Nasdaq: EXPI), Fair Isaac (NYSE: FICO), FormFactor (Nasdaq: FORM), Fortis (TSE: FTS), Garmin (NYSE: GRMN), Gates Industrial (NYSE: GTES), Gentherm (Nasdaq: THRM), Gibraltar Industries (Nasdaq: ROCK), Glaukos (NYSE: GKOS), GlaxoSmithKline (NYSE: GSK), Herbalife Nutrition (NYSE: HLF), Hess Midstream Partners (NYSE: HESM), Host Hotels (Nasdaq: HST), Jazz Pharmaceuticals (Nasdaq: JAZZ), Johnson Controls (NYSE: JCI), KKR (NYSE: KKR), Knowles (NYSE: KN), Lantheus Holdings (Nasdaq: LNTH), Lincoln Electric (Nasdaq: LECO), LivaNova (Nasdaq: LIVN), LXP Industrial Trust (NYSE: LXP), Macerich (NYSE: MAC), MediaAlpha (NYSE: MAX), Methanex (Nasdaq: MEOH), Mister Car Wash (NYSE: MCW), Monro Muffler (Nasdaq: MNRO), NerdWallet (Nasdaq: NRDS), NETGEAR (Nasdaq: NTGR), New Oriental Education & Technology (NYSE: EDU), Olo (NYSE: OLO), OneMain Holdings (NYSE: OMF), OneSpaWorld (Nasdaq: OSW), Option Care Health (Nasdaq: OPCH), Oshkosh (NYSE: OSK), Parsons (NYSE: PSN), Perdoceo Education (Nasdaq: PRDO), Perion Network (Nasdaq: PERI), PNM Resources (NYSE: PNM), ProPetro (NYSE: PUMP), PTC (Nasdaq: PTC), Q2 Holdings (NYSE: QTWO), QuidelOrtho (Nasdaq: QDEL), Radware (Nasdaq: RDWR), Remitly Global (Nasdaq: RELY), SAGE Therapeutics (Nasdaq: SAGE), Schrodinger (Nasdaq: SDGR), Scotts Miracle-Gro (NYSE: SMG), Silgan Holdings (NYSE: SLGN), SiteOne Landscape Supply (NYSE: SITE), Sleep Number (Nasdaq: SNBR), Stepan Company (NYSE: SCL), Strategic Education (Nasdaq: STRA), SunCoke Energy (NYSE: SXC), Tenable (Nasdaq: TENB), Timken (NYSE: TKR), Trane (NYSE: TT), TransMedics Group (Nasdaq: TMDX), TTM Technologies (Nasdaq: TTMI), UL Solutions (NYSE: ULS), United Therapeutics (Nasdaq: UTHR), Vita Coco (Nasdaq: COCO), Verisk Analytics (Nasdaq: VRSK), Waters (NYSE: WAT), WEC Energy Group (NYSE: WEC), Zeta Global (NYSE: ZETA).

Notable IPOs Today: OS Therapies Incorporated (NYSE American: OSTX).

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Employment Cost Index (8:30 a.m. ET), Chicago PMI (9:45 a.m. ET), Pending Home Sales (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), FOMC Interest Rate Decision (2:00 p.m. ET), FOMC Press Conference (2:30 p.m. ET).

Pinterest’s Disappointing Outlook

On Tuesday, Pinterest (NYSE: PINS) plunged 10.84% in after-hours trading due to a weak outlook tied to its otherwise solid financial earnings results.

Financials: Pinterest reported earnings of 29 cents per share in the past quarter and revenue of $853 million; both were better than expected.

Outlook: The company said revenue for the current quarter will be in the range of $885 million to $900 million, which is lower than expected.

Final Thoughts: Could this weak outlook be a sign that online advertising is slowing down?

AMD’s Record Data Center Revenue

Advanced Micro Devices (Nasdaq: AMD) jumped 7.64% in after-hours trading on Tuesday after reporting strong financial earnings results.

Final Thoughts: AMD said it had record revenue for its data center segment.

Customers Reach Their Breaking Point: Starbucks sales tumble as customers reject high-priced coffee (CNN)

Good Question: Why is ETH demand lacking post-Ethereum ETF? (Cointelegraph)

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