MSFT remains attractive due to strong Azure growth (100B business, +43% YoY), improving Copilot adoption (30M seats), and sustained cash flow positivity.

we generally see Amazon Web Services, Microsoft Azure and Google Cloud controlling a similar mix of AI lab compute spend in the next 2 years before this shift to backs stopped infrastructure kicks in.

Aka Amazon, Microsoft and Google have pricing power now for their labs, but after that that pricing power moat might go away.

Uh, and just in like full disclaimer here because for just like an avoidance of doubt of of like exposure, I don't have any exposure to Anthropic. I don't have any like venture capital exposure to anthropic or open AI.

Um, I do have a little bit of exposure to Microsoft and Meta, both of those. uh and not to Google and Amazon.

I mean, I'm not trying to show Microsoft. You're going to get exposure to that one, too.

Microsoft ended the summer with an explosive rally on earnings, but it's been stuck alongside the broad market the past several weeks. And that might be giving at least one mega bull some cold feet in two of the biggest options trades of the day.

It looks like someone closed out two bullish call spreads. A 595705 spread worth $19 million and a 610725 worth about 17 million. The trade spanned more than 30,000 call contracts for a total credit of about $36 million.

Now, these were still very far out of the money contracts, but they also were for December 2027 expiry. So, it's interesting not just because they were two of the top three biggest trades on the entire tape today, but because they still had plenty of time to work, but the owner chose to bail instead on a day the stock is going against them.

Jason Snipe, you do own Microsoft. Target today to 600 from 500. Reiterated a buy Bank of America. So, I I think you know for me on Azure, Azure is now a hundred billion dollar business, right?

Just crossed over that in the last quarter. Um, you know, Azure revenue was up 43% year-over-year and co-pilot adoption is improving 30 million paid seats. So, I continue to like this stock.

It's now positive on the year up around 4%. It's obviously was an indulgence previous to that but I like

earnings was the reset this stock hadn't done anything and I feel like after they delivered the stock feels like it it got that next leg that investors like you were looking for I think

I think that the reason for the the significant uptick was Thank you guys 27% since then, right, was the co-pilot numbers, right? Those those were significant, but there needs to be and and they're going to remain cash flow positive, right?

We heard from Amy on that. So, I think that's going to be what's going to continue to push the stock. It hasn't moved really that much since earnings, but I do think you'll take 27%. So, it's 500. They'd see it going to six.