- The Investor Lookout
- Posts
- 📈 Microsoft Cloud Rises 9%
📈 Microsoft Cloud Rises 9%
Amazon to invest $4 billion to expand rural delivery, Meta shares rise on stronger-than-expected revenue, Shein explores US restructuring, Novartis to buy kidney disease drug maker for $1.7B, Microsoft beats Q3 earnings estimates
Evelio Silvera
May 01, 2025
Below is today’s edition of the Bull Street Daily Briefing…
Good morning.
⚡ The Fast Five → Amazon to invest $4 billion to expand rural delivery, Meta shares rise on stronger-than-expected revenue, Shein explores US restructuring, Novartis to buy kidney disease drug maker for $1.7B, Microsoft beats Q3 earnings estimates
🔎 Market Trends → Late rally propels Dow, S&P 500 to slight gains; US Futures Edge Lower Ahead of Key Data, Earnings
And now…
⏱️ Your 5-minute briefing for Thursday, May 1, 2025:
MARKET BRIEF
Before the Open
As of market close 04/30/2025.
Pre-Market
| 
|
Fear & Greed
Markets in Review
Markets Stay Resilient as Nasdaq Breaks Losing Streak
The Dow rose 0.4% to 40,669.4, while the S&P 500 added 0.2% to 5,569.1, both extending their seven-day winning streaks. The Nasdaq slipped 0.1% to 17,446.3, but still booked its first monthly gain since January.
The Big Picture:
Despite a headline-grabbing 0.3% GDP contraction in Q1, markets found their footing. The drop was largely attributed to temporary drags, and signs of resilient consumer spending and a cooler inflation read helped cushion sentiment.
Even amid tariff uncertainties and mixed private job data, investors are finding silver linings: the core PCE price index cooled to 2.6%, easing pressure on the Fed. Meanwhile, pending home sales surged, hinting at life in housing despite high rates.
WTI crude tumbled 3.7% to $58.16, as OPEC+ output jitters met demand worries. Gold slipped 0.8% to $3,306.70, and silver fell 2.5% to $32.75, reflecting risk-on appetite and profit-taking.
Market Movers:
📉 Super Micro (SMCI) fell 11.5%, after cutting its outlook—AI tailwinds met by cyclical headwinds.
📉 Newell Brands (NWL) dropped 7.5%, citing macro uncertainty and soft forward guidance.
📈 Western Digital (WDC) surged 8%, riding strong Q3 revenue growth and optimistic guidance.
What They’re Saying:
“We expect the U.S. economy to skirt a recession,” said Wells Fargo Investment Institute, emphasizing resilience in consumption and cooling inflation.
WHAT WE’RE WATCHING
Events
Today: Department of Labor - Unemployment Claims - 8:30am
Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.
Today: Institute for Supply Management - The Institute for Supply Management (ISM) Manufacturing Purchasing Managers' Index (PMI) - 10:00am
Why You Should Care: It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
Earnings Reports
Today: Apple, Amazon, MicroStrategy, McDonald’s, Mastercard, CVS Health, Airbnb, Shell, Eli Lilly, Reuters, Motorola
Tomorrow: Berkshire Hathaway, ExxonMobil, Chevron, Shell, Cigna
MARKET BRIEF
Leading News
Microsoft's Cloud Surge Defies Gravity: Q3 Blowout Sends Shares Skyward 9%
Photo Credit: Matthew Manuel
Why it matters:
Microsoft's stellar earnings reveal that AI investments are paying off sooner than expected, creating a moat against competitors while cushioning potential tariff impacts that have worried tech investors.
Zoom Out:
The Redmond giant's quarterly performance tells a story of remarkable resilience. Azure revenue jumped 33% — with AI contributing a whopping 16 percentage points of that growth — handily surpassing Wall Street's expectations of around 30%. (MSFT)
Despite market jitters about President Trump's tariffs potentially dampening tech spending, Microsoft's forward guidance suggests the opposite: demand for AI infrastructure is accelerating faster than the company can build it. CEO Satya Nadella reported that Microsoft is actually facing "AI capacity constraints" extending beyond June.
Key Insights:
Cloud momentum accelerating: Microsoft Cloud revenue reached $42.4 billion, growing 20% year-over-year. The company's Intelligent Cloud segment that includes Azure generated $26.75 billion, exceeding analyst estimates by nearly $600 million. This suggests enterprise cloud spending remains robust despite economic uncertainties.
Windows comeback: Commercial deployments of Windows 11 increased 75% as the October 2025 end-of-support deadline for Windows 10 approaches. This creates a potential revenue tailwind as businesses accelerate refresh cycles ahead of tariff implementation.
AI adoption metrics: GitHub Copilot users quadrupled to 15 million in just one year — a tangible measure of how rapidly AI tools are being embraced by developers. This positions Microsoft to capitalize on the next wave of AI-infused productivity gains.
Market Pulse:
"Demand is growing a bit faster," CFO Amy Hood told analysts. "Therefore, we now expect to have some AI capacity constraints beyond June."
Bull’s Take:
Smart investors should view Microsoft's cloud momentum as the canary in the coal mine — but singing happily, not gasping for air. The AI revolution is arriving faster than the market expected, and Microsoft has secured its position at the front of the parade.
Headlines
Amazon to invest $4 billion to expand rural delivery network in US (link)
Meta shares rise on stronger-than-expected revenue for first quarter (link)
Honeywell Stock Rises as Firm Posts Strong Results, Plans to Counter Tariffs (link)
Qualcomm forecasts Trump tariffs will dent revenue, shares fall 6% (link)
Shein explores US restructuring as tariffs threaten to derail London IPO (link)
Novartis to buy kidney disease drug maker Regulus in up to $1.7 billion deal (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to choity25
All content provided by Investor Lookout and Bull Street is for informational and educational purposes only and should not be taken as trading or investment recommendations.
Reply