Story: Microsoft said Tuesday that technology giants hope to pay for costs while dumping billions of dollars in costs into its ambitious bet on artificial intelligence.
Clavis said the layoff announcement “is prudent and will eat [Microsoft’s] Profits increase. ”
The move comes weeks after Microsoft's cloud computing business, Azure and blowouts, led to calm investors fearing uncertain economies in the latest quarter.
“You see Azure with constant currency grow by 35%, which is amazing, well above Amazon, and AWS grows by about 16%. So, Amazon's growth is doubling, which is great,” Cravis said.
“They also grew more than their third competitor, Google's cloud business,” Cravis said. “We like Microsoft because it has a lot of strong recurring revenue, which is a good thing to have a lot of volatility in this market, and we're a little worried about a potential recession.”
