Core Points - Wall Street analysts have raised their price targets for CoreWeave Inc, with JPMorgan increasing it from $43 to $66 and Needham from $55 to $78, reflecting positive sentiment following the company's strong earnings report [1][2] Financial Performance - CoreWeave reported first-quarter revenue of $981.63 million, surpassing analyst expectations of $859.77 million, but recorded an adjusted loss of $1.49 per share [2] - The company generated 98% of its revenue from committed contracts, with only 2% from on-demand services, indicating a disciplined approach to capital deployment [9] Customer Concentration - Microsoft accounted for 72% of CoreWeave's total revenue in the first quarter, significantly increasing from 10% in the previous year, contributing $707 million [7] - The remaining revenue grew by 117% to $275 million, with no other customer exceeding 10% of total revenue [7] Contracts and Future Revenue - CoreWeave has a significant contract with OpenAI worth up to $11.9 billion, which is not yet included in the company's RPO balance due to accounting treatment considerations [4][10] - An additional commitment from OpenAI to pay up to $4 billion through April 2029 was signed in May 2025, expected to be reflected in future revenue reports [8] Revenue Backlog and Projections - CoreWeave's cRPO increased by 4% sequentially to $8.5 billion, while long-term RPO declined by 11% to $6.2 billion [10] - Analysts project fiscal 2025 revenue of approximately $5 billion, with adjusted EPS estimates ranging from $(0.98) to $(1.23) [6][11]

Core Points - Microsoft has proposed to unbundle its Office 365 and Microsoft 365 software suites from its Teams app to alleviate competition concerns raised by European regulators [1][2] - The European Commission acknowledged Microsoft's commitments to address issues related to the integration of Teams with its productivity tools like Word and Outlook [1] Group 1 - Microsoft will offer versions of Office 365 and Microsoft 365 without Teams at a reduced price [2] - Customers will be allowed to switch to Office 365 and Microsoft 365 without Teams, including under existing contracts [2] - Microsoft will enhance interoperability for Teams' competitors with other Microsoft products and allow customers to transfer their data out of Teams to competing products [2]

Core Insights - Meta Platforms and Microsoft are emerging as leaders in artificial intelligence (AI) with substantial investments in AI infrastructure and applications [1] - Meta is planning to invest between $64 billion and $72 billion, while Microsoft anticipates increased capital expenditures to support growth in cloud offerings and AI investments [1] Investment Opportunities - Meta Platforms is focusing on enhancing advertisers' return on ad spending through its proprietary machine learning system, Andromeda, which is powered by NVIDIA [2] - The launch of a new Generative Ads Recommendation model has resulted in a 5% increase in conversion rates for Facebook Reels [3] - Meta's recommendation system improvements have led to a 7% increase in time spent on Facebook, a 6% increase on Instagram, and a 35% increase on Threads over the past six months [3] Product Developments - Meta is emphasizing personalization and entertainment in its AI initiatives, including the launch of a standalone Meta AI app and growing sales of Ray-Ban Meta AI glasses and Quest [4] - Microsoft has over 60,000 Azure AI customers, reflecting a nearly 60% year-over-year increase [5] - The Azure AI Agent Service has been utilized by over 10,000 organizations, and Microsoft's Phi small language models have achieved 38 million downloads [6] Performance Metrics - Microsoft 365 Copilot is expanding rapidly, with usage increasing threefold compared to the previous year, and it has been adopted by over 230,000 organizations, including 90% of the Fortune 500 [7] - Meta Platforms shares have outperformed Microsoft year-to-date, with a 12.5% appreciation compared to Microsoft's 7.5% [8] Earnings Estimates - The Zacks Consensus Estimate for Meta's 2025 earnings is $25.52 per share, indicating a 6.96% increase over fiscal 2024 [11] - Microsoft's fiscal 2025 earnings estimate has increased to $13.30 per share, suggesting a 12.71% growth over 2024 [12] Valuation Insights - Meta Platforms shares are trading at a forward 12-month Price/Sales ratio of 8.57X, which is lower than Microsoft's 10.9X, indicating that Meta is relatively cheaper [14] Conclusion - While both companies are leveraging AI for growth, Microsoft is better positioned due to strong adoption of its AI services and products, earning it a Zacks Rank 2 (Buy) compared to Meta's Zacks Rank 3 (Hold) [16]

Microsoft said Monday (May 12) that it will retire Bing Search APIs on Aug. 11.“Any existing instances of Bing Search APIs will be decommissioned completely, and the product will no longer be available for usage or new customer signup,” the company said in an Azure Update.Microsoft suggested in the update that customers may consider as an alternative Grounding with Bing Search as part of Azure AI Agents.“Grounding with Bing Search allows Azure AI Agents to incorporate real-time public web data when generati ...

Microsoft Corporation NASDAQ: MSFT and OpenAI have announced that they are looking to reset their partnership. The reset is the latest chapter in a story that’s been building between the two companies for the last six years. In this case, it should be profitable for MSFT stock. Microsoft TodayMSFTMicrosoft$453.55 +1.44 (+0.32%) 52-Week Range$344.79▼$468.35Dividend Yield0.73%P/E Ratio36.50Price Target$507.77Add to WatchlistThe partnership between Microsoft and OpenAI started in 2019 with a $1 billion invest ...

Group 1: AI Revolution and Market Trends - The AI revolution is confirmed to be ongoing, with significant capital expenditure programs from companies like Microsoft and Meta focusing on AI infrastructure [1] - Technology stocks with an AI focus that experienced a sell-off in early April have shown a strong recovery [1] Group 2: Investment Opportunities in AI ETFs - Investors may consider exchange-traded funds (ETFs) as a way to gain exposure to AI, which can mitigate risks associated with individual stock ownership [2] - Three ETFs are highlighted, each approaching AI from different angles, allowing for diversified investment in the AI sector [2] Group 3: Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ) - The Global X Robotics & Artificial Intelligence ETF focuses on companies embedding AI into the physical world, particularly in industrial and healthcare applications [3] - Top holdings include NVIDIA and Intuitive Surgical, each with over 8% weight in the fund [4] - The BOTZ ETF has recovered most of its losses from early April and is nearing its 200-day simple moving average [5] Group 4: Global X Data Center & Digital Infrastructure ETF (DTCR) - The Global X Data Center & Digital Infrastructure ETF focuses on AI infrastructure, with over 50% of its exposure in real estate investment trusts (REITs) [7][8] - The fund has approximately $230 million in assets under management and a low expense ratio of 0.50% [8] Group 5: Roundhill Generative AI & Technology ETF (CHAT) - The Roundhill Generative AI & Technology ETF targets companies in the generative AI space, featuring major technology names and a focus on software [10] - This fund is the youngest of the three, launched in 2023, and uses a proprietary methodology for company selection [11] - The expense ratio for this actively managed fund is around 0.75% [11]

Core Viewpoint - Microsoft is reducing unnecessary management layers and laying off approximately 6,000 employees, which is about 3% of its global workforce, to adapt to a dynamic marketplace and leverage new technologies [2][3]. Group 1: Job Cuts and Workforce Changes - Microsoft is laying off around 6,000 employees, including 1,985 in Washington state, as part of its organizational changes [2]. - The layoffs represent about 3% of Microsoft's global workforce, although the company did not disclose the total number of job losses [2]. Group 2: Technological Advancements and Business Strategy - The company is focusing on deploying AI across all its products and aims to empower employees to engage in more meaningful work through new technologies [3]. - Microsoft recently reported strong quarterly results driven by its cloud computing and AI sectors, indicating a robust performance in these areas [3]. Group 3: Historical Context and Industry Position - Celebrating its 50th anniversary, Microsoft was among the first tech giants to invest heavily in artificial intelligence following the launch of ChatGPT in 2022, which significantly impacted the tech industry [4].

Core Viewpoint - Microsoft is reducing its workforce by approximately 6,000 employees, or about 3% of its global workforce, to improve management efficiency and increase the "span of control" for managers [1][10]. Group 1: Job Cuts and Management Structure - The job cuts are part of a broader trend among major tech companies, including Amazon and Google, to flatten management layers and increase the ratio of individual contributors to managers [2]. - Microsoft has begun notifying affected employees in the US, who will remain on the payroll for 60 days, with variations based on local regulations globally [3]. - Insiders at Microsoft view the flattening of management layers positively, citing inefficiencies and the presence of many ineffective managers [4][5]. Group 2: Span of Control Goals - Microsoft does not have centralized goals for the span of control, but some leaders have set their own targets, such as increasing the number of reports per manager to eight for engineering managers and nine for security managers [6][7]. - The job cuts also aim to increase the number of coders on projects, reflecting an internal focus on optimizing the "PM ratio" [8]. Group 3: Rationale Behind Changes - The restructuring is part of Microsoft's efforts to reduce costs while investing significantly in artificial intelligence, with analysts noting it as a commitment to profitable growth [10]. - Earlier this year, Microsoft also made performance-based cuts, dismissing 2,000 employees identified as low performers and implementing a new performance improvement plan [11].

Group 1 - Microsoft Corporation is positioned for continued data center growth driven by increasing demand for AI technologies [1] - Enterprises are accelerating the adoption of AI agents to automate administrative processes, indicating a shift in operational strategies [1] Group 2 - The article highlights the importance of considering the entire investment ecosystem rather than evaluating companies in isolation [1]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive has bureaus and studios in key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Group 2 - The company is focused on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4] - Automation and software tools, including generative AI, are used, but all content is edited and authored by humans [5]