In the most recent 13F, Terry Smith’s Fundsmith LLP reported a portfolio valued at $23.02 billion, with the top five holdings making up a substantial 43.49% of total assets. Smith, often described as a buy-and-hold investor with a focus on high-quality growth companies, continues to emphasize durable franchises with strong cash generation. Below is a detailed look at each of the top five positions.Meta Platforms Inc. (META) – 11.44%Fundsmith’s largest holding is Meta Platforms, with 3.57M shares worth $2.63 ...

Both companies should continue to benefit from their OpenAI investments.Nvidia (NVDA -0.77%) and Microsoft (MSFT 0.26%) both made big bets on OpenAI, but they are coming at the opportunity from very different directions. Nvidia's move is about keeping its chips at the center of the artificial intelligence (AI) infrastructure buildout and expanding into the software side, while Microsoft's early investment let it weave OpenAI's large language models (LLMs) into its cloud computing and software businesses.The ...

Core Insights - Microsoft is leveraging liquid cooling and software enhancements in data centers to reduce power consumption and improve margins, particularly for AI workloads [1] - The company is experiencing significant growth in cloud computing, with Azure holding a 20% market share and over 400 data centers globally to meet AI demand [2] - Copilot is the fastest-growing product in the Microsoft 365 suite, with over 430 million paid commercial seats and potential for increased revenue per user [3][4] Group 1: AI and Cloud Strategy - Microsoft's enterprise-focused AI strategy is a competitive advantage, with over 800 million monthly active users engaging with AI features [5] - The company has built a comprehensive technology stack, including data analytics and AI application development tools, positioning itself as a key player in enterprise AI [8][9] - Microsoft has a substantial contracted backlog of $368 billion and a 98% annuity revenue mix, indicating strong revenue visibility [9] Group 2: Market Position and Valuation - Microsoft trades at 28.3 times forward earnings, reflecting its durable enterprise-first model and early-stage AI adoption, suggesting potential upside in share value [10] - Analysts predict Microsoft's market capitalization could reach $5.7 trillion by 2030, surpassing that of Alphabet and Amazon [16][17] - The company is better positioned than competitors like Alphabet and Amazon, which face challenges in their respective markets [17]

Core Insights - Microsoft is leveraging its legacy products, particularly Office 365, to generate stable revenue that funds its investments in artificial intelligence (AI) [1][2][6] - The company reported $54.9 billion in revenue from Office products for fiscal year 2024, accounting for 22% of total revenue, indicating strong performance and growth potential [3][7] - Microsoft is making significant investments in AI, with plans to allocate approximately $80 billion for AI-enabled data centers [9] Revenue Generation - Office 365 reached 400 million paid seats in January 2024, showcasing its widespread adoption and integration into professional environments [1] - The legacy suite of Microsoft 365 products continues to grow by double digits year over year, demonstrating resilience and ongoing demand [7] - Azure's income reached $75 billion, a 34% increase, highlighting the rapid growth of Microsoft's cloud services [10] Competitive Positioning - Microsoft is catching up in the generative AI space, having partnered with OpenAI and investing in Nvidia chips to enhance its capabilities [4][5] - The company's market cap is nearing $4 trillion, with significant growth potential if its AI initiatives succeed [11] - Microsoft remains a solid long-term investment due to its stable product lines and a quarterly dividend of $0.91 per share, despite a dividend yield under 1% [12] Future Outlook - The growth in legacy products supports Microsoft's capital-intensive investments in AI, reducing the risk compared to competitors heavily focused on AI alone [9][13] - Overall revenue increased by 18% from Q4 2024 to Q4 2025, indicating a positive trajectory for the company [13]

[Music] Hello and welcome to Market Domination. I'm Josh Lipton live from our NYC headquarters. Stocks hitting new all-time highs on optimism over AI momentum and clearly markets not impacted by the turmoil in Washington around the government shutdown.We're digging into those stories, but right now there's an hour to go until the closing bell. Let's take a look at the major averages. The Dow up about 316 points.The broad gauge, the S&P 500 is up about a tenth of a percent. Your tech heavy NASDAQ is down abo ...

In today's fast-paced and competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies before making investment decisions. In this article, we will conduct a comprehensive industry comparison, evaluating Microsoft (NASDAQ:MSFT) against its key competitors in the Software industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within ...

Core Insights - Microsoft generated $71.6 billion in free cash flow in fiscal 2025, approximately 1.8% of its $3.9 trillion market capitalization, translating to $9.60 per share for a stock price of $520 [3][4] - The company reported a record net income of $102 billion, achieving a net margin of around 36%, marking the first time it surpassed the $100 billion profit threshold [4] - Microsoft returned $37 billion to shareholders through dividends and buybacks in the last twelve months, showcasing its commitment to shareholder value [4] Financial Performance - Microsoft achieved $281.7 billion in revenue for fiscal 2025, with operating income rising in the mid to high teens [6][9] - The Intelligent Cloud segment, particularly Azure, was a key growth driver, surpassing $75 billion in annual revenue with a year-over-year growth of 34% [6][13] - The company's operating cash flow margin stood at 48.3%, resulting in $136 billion from total revenue [3] Growth Drivers - Microsoft is expected to invest approximately $70 billion in AI infrastructure during fiscal 2026, enhancing its competitive position in the market [13][15] - The AI services are projected to contribute significantly to revenue growth, with sustained annual growth of 17% anticipated [9] - The Productivity and Business Processes segment generated $116.5 billion in fiscal 2025, reflecting a 16% increase, driven by higher pricing and AI-enhanced features [13] Valuation and Future Outlook - Current trading at 38 times trailing earnings is justified by Microsoft's robust growth and cash flow generation, with expectations of continued premium valuation [10] - If Microsoft maintains its current multiple, the implied share price could exceed $1,000, indicating potential for significant growth [14] - The anticipated expansion of operating margins to 50% as AI services scale could lead to $225 billion in operating income by 2028 [9][10]

We recently published Analysts Are Talking About These 10 Stocks as AI Investments Continue to Grow. Microsoft Corporation (NASDAQ:MSFT) is one of the stocks analysts were recently talking about. Joseph Shaposhnik from Rainwater Equity explained in a latest program on Schwab Network that MSFT is among the best names to benefit from AI. Here is how he made the case of the software giant: “We’ve owned Microsoft Corp (NASDAQ:MSFT) because it certainly is one of the most recurring revenue businesses on Earth ...

Amazon.com Inc.’s cloud-computing business has helped propel its shares for almost two decades, but increasing pressure from rivals like Microsoft Corp. and Oracle Corp. is sapping some of the stock’s appeal. Most Read from Bloomberg The proliferation of artificial intelligence has led to an explosion of demand for cloud hyperscalers, where Amazon Web Services has the biggest market share. It’s followed by Microsoft’s Azure and Alphabet Inc.’s Google Cloud Platform, with Oracle’s huge growth suggesting t ...

Key Points Shares of the tech behemoth are trading near their all-time high price. Other tech players' shares are also soaring because of enthusiasm about AI. But Microsoft's diversification on the whole keeps its business a bit more stable. 10 stocks we like better than Microsoft › The stock market has been on a bull run for close to two years, which is good news for investors. The "we should keep an eye on that" news is that it's now historically pricey, which leaves it more susceptible to a pu ...