Fast Money Traders Discuss Microsoft's Earnings and Big Tech Outlook

Microsoft's Post-Earnings Performance

• 💡 Microsoft's stock is trading around 29 times next year's earnings, which is considered cheaper than recent history but still expensive overall.
• 📈 The stock has seen a nice move off recent lows, potentially back to levels seen in late February.
• ✅ Traders are looking for guidance on Azure cloud growth and capital expenditures (capex) for the upcoming fiscal year.

Key Takeaways from Big Tech Earnings

• 🎯 Google's earnings were better than feared, with the stock rising 5% in aftermarket trading, possibly due to low expectations.
• ☁️ Microsoft's Azure growth was significantly better than feared, a key factor that had previously impacted the stock.
• 🤖 The uptake of Microsoft's AI agents, such as Copilot, is a crucial point of interest for understanding the company's AI strategy.

Impact on Nvidia and Data Centers

• 📊 Commentary on enterprise spending and Dynamics 365, which beat expectations, is also being considered.
• 📉 There's a thesis that Nvidia could make less money while other companies make more, a scenario not fully priced into the market.
• ⚠️ Traders are watching if Microsoft's reported cutbacks on data center leases are real and how much impact this will have on Nvidia's revenue, which was 88% of its business last year.
• ⚡ The market's overall strength, with large-cap tech making up 40%, is being monitored, especially how Nvidia's performance might affect the broader market.