so if satya nadella is able to paint the picture of what microsoft is after, what it sees with that, people could get very bullish on this one. >> possibly. but i'm kind of taking a step back and looking at this particular action post earnings, vis-a-vis what happened with the tech names over the past four weeks and microsoft hasn't had that participation in the upside value that the other names do and that is without me stepping out on the risk curve and looking at the highly leveraged type of names. so to me this is a proverbial sigh of relief we were extremely concerned around azure growth. that came roughly in line with expectations, it wasn't a complete collapse. we had already expected weakness in pc demand, that was in line i'm still curious to see what they're going to say about smb's and customer base. but if you take a look at price action today, and compare it to what we've seen from other tech names, to me this is really just people saying okay, perhaps we got a bit too negative on the name but i wouldn't read as much into the positive one-day price action as a one-day po

satya nadella jack otter: i'm a clichÉ but if you put up frosty drug and fireball in front of me i willryday. jack hough: you are not saying a brand. there are 790 beers in their. they are buying all of these craft beers, not a lot of pricing power and volumes are declining. a new problem, multiple based shots, we have a report from mk am partners, the fastest growing segment and alcohol, fireball cinnamon. 50 ml shots. you see them in a gas station somewhere, the beer, the cooler, these shots at the counter and you say wait a second, they don't have a liquor license, how are they selling liquor? it is mall-based beverages and it could be the largest 2023 increment all alcohol volume gain or and it is going to take share from here. jack otter: we have great actionable ideas. andrew: the energy etf x led, given the disconnect between energy prices and stocks. if you like energy i suggest you consider the commodity etfs like natural gas which is 50%, uso for oil or the mlps. jack otter: you have a different pick for us. carleton: if you are filling up on malt beverages you might slip into

microsoft ceo, satya nadella, spoke of the need for caution as parts of the world go into recession.cements by amazon and meta. to other news now — and the nobel prize winning journalist maria ressa has been acquitted of tax evasion charges by a court in manila. her news site, rappler, was also cleared of tax evasion. ms ressa, who was awarded the nobel prize alongside a russian journalist in 2021, is head of rappler, which earned a reputation for its in—depth reporting and tough scrutiny of former president rodrigo duterte. she was convicted in 2020 of libel and does face several other charges, which she says are politically motivated. i've been speaking to maria ressa about her relief. this is the very first legal win that rappler has ever had since president duterte took office, and the kind of social media manipulation, the harassment online, and then the weaponisation of the law happened. so this is a day that we had hoped would happen sooner. this case was... we went to trial for more than four years to get to this point, but we are here. and, you know, it went down to these th

the microsoft ceo satya nadella said there was a need for caution as parts of the world goes into recession. no details have yet been given of where the redundancies will be made. in the united states, authorities have seized the crypto currency exchange bitzlato and arrested its russian co—founder anatoly legkodymov. in a press conference, the justice department accused the firm of fuelling a "high—tech axis of crypto crime" and says it has processed more than $700 million in illicit funds. i asked our reporter azadeh moshiri what we knew about this crypto exchange, and why it had interested us law enforcement. well, the words "high—tech access of crypto crime" pack quite a punch, even if it's really wordy. what the justice department has said is that this particular crypto exchange allegedly catered to criminals. they even said during their press conference that the co—founder, anatoly legkodymov, called his users �*crooks'. now, they said that it processed these hundreds of millions of illicit funds by breaking a lot of rules that are in place to stop money laundering, so that means, for

microsoft ceo satya nadella spoke of the need for caution as parts of the world go into recession. and the most senior un delegation to visit the country since the taliban swept to power in 2021, has flown into kabul to raise concerns about restrictions on women working for aid agencies. the visit by the un deputy secretary general, amina mohammad, comes as some international aid organisations have partially resumed work in afghanistan, after receiving assurances that women can work in the health sector. our chief international correspondent lyse doucet reports from kabul. winters are always harsh in afghanistan, but this is the winter of all winters, not only the temperatures below freezing, but this is a country where electricity is erratic or absent and heating is hard to find, especially in remote areas of afghanistan, which are all but cut off by snow. but on top of that, this year, the taliban have decided that afghan women can no longer work for the international aid agencies who are desperately trying to get this urgently needed aid to millions of people who need it. so jus

satya nadella last night addressing economic uncertainty on the earnings call >> as i meet with customersnd partners, a few things are increasingly clear just as we saw customers accelerate their digital spend during the pandemic, we are now seeing them optimize that spend. also, organizations are exercising caution given the macroeconomic uncertainty, and the next major wave of computing is being born as we turn the world's most advanced a.i. models into a new computing platform >> lot of discussion of a.i., jim, but azure, decelerates into the end of the quarter, down about 35%. >> if you want to follow the arc of a conference call, this was one of the most confusing but also negative one i've come up with satya comes up with a million things that make you want to own it then he gives you that littl negative about optimization. optimization is a code word for, like, we've had enough there's obviously, literally, a glut of enterprise software. then, amy hood comes on the call, and i have always told people, please wait for amy hood, because she's the hammer what she did was say, look, oc

which is in the low 20s this is a 20-year look i did want to point out right in here is where satya nadella took over microsoft at a discount to the nasdaq 100 through this decade then the boom in the cloud, the m&a strategy, it went to a premium. right now, still having to decide whether, in fact, big tech has kind of got enough payback and is sort of more reasonably valued or not i think in general, the cyclical areas of the market continue to show strength. consumer finance today, like capital one, teledyne, some industrials as well. >> hence the financials at the top of the market and consumer discretionary. i feel like one of the most important things to happen today came from our neighbors up north, the bank of canada. they raised interest rates as expected but then they signaled a pause they said even though economic activity remains robust, we'll pause and see the tightening effect i pointed out because they were early on tightening, early on this notion of front-loading, big tightening moves to calm inflation down, then ahead of the fed in october when they came out and scaled it b

remember going into the fruit, everybody was super fearful that satya nadella had shared tetra for twoears and the u.s. was going to get worse. so they brought expectations down. but they delivered what was an okay quarter. no one was going to do back flips over these numbers. technology spend is slowing. it may get worse in the back half of the year. they have another quarter of tough comps. let's not break out the champagne glasses at this point. but relative to the fear, way better than expected. ed: that interesting point. when we look at azure the business, it is 100 basis points better than guided. you think about this idea, eps dropped 6.5%. the street was looking for a 7.5% drop year on year. when we look forward to the rest of the year, what is the story for microsoft with this broader economy, will it have to rely on the cloud business? brea: it's all about the cloud. there is no other story here. as we go deeper into the year, this concept of i.t. budgets are shrinking, can microsoft do more with less? what we are hearing in a lot of the interviews is cio's are continuing to

struck at davos just feels so remarkably different than what we hear from some others, like sa satya nadella. he was asked as a recession in i.t. spending, he said, not a chance layoffs, they're hiring. he said the cycle looks nothing like 2008 or the dot com bubble burst. what's so different than a huge company or ceo leading microsoft? >> well, i mean, optimism and bill mcdermott, don't expect to see bill mcdermott singing a woe is me tune he's going to find a silver lining everywhere. we're going to have to go line by line in this report to figure out not just what's happening for service now, but what's happening, more intelligence on what's happening for the whole software industry, you know, expectations are out there we see what's happening with misso microsoft so far today. >> he's optimistic but he's a straight shooter last year, he was the guy that came out and said, listen, we're going to face weakness what he says tomorrow is going to be so fascinating we'll see. >>> verizon rallying after posting results this morning at&t doing the same ahead of t-mobile next week the sector bri

context of microsoft which is the real company that's doing stuff here what they see they're doing, satya nadellaked about this extensively last earnings call and saying we're going to incorporate this technology across our technology stack. so today, it's running on azure. that's a good part of the azure business even if people want to have their own versions of chatgpt, that maybe don't use open a.i., they see it as an opportunity to run the systems on azure he bee yond that they're selling some of this technology and we're anticipating them to put it finally into consumer products, something else that nadella talked about that means in fact office 365, more extensively in bing search and into gaming and so forth there's a lot of opportunity there, and nadella talks about this as a platform shift that is something you should pay attention to he got it right with cloud, got it right with their azure business now he sees this as the next step. >> and dave, put niit into contx from the baidu side of things. what's the opportunity and how might it come into consumers' attention there? >> well, the

but ceo satya nadella love arishing praise -- lavishing praise, telling the "wall street journal" thatrosoft's investment in open a.i. has huge potential. the technology is by artificial intelligence, and it creates content in a way that's amazingly similar to human response. a new york rabbi pulled a fast one on his congregation to underscore the stunning ability and potentially worrisome power of chat gp pt. a couple weeks ago rabbi josh franklin told his audience he was going to do something new. listen. ing. >> maybe something you're going to say at first is unethical, but i'm going to do it anyways. i'm going to plagiarize the sermon. but it's a game. i'm going to play you the sermon and read you someone else's sermon, and you have to tell me who wrote it. liz: okay. after reading the sermon which interpreted a torah portion of por to giveness, he asked the congregation to guess who wrote it. here's what they thought. >> my father did not write them. >> larry hoffman. >> larry hoffman did not write them. the answer is going to be surprising. artificial intelligence. liz: in a fox

10,000 people >> just a tiny $2 trillion company reporting after the bell so kelly, the mantra from satya nadella and company is do more with less. and that is exactly what microsoft is going to be having to do itself 10,000 employees got the axe last week. we know that already we also know they're investing billions of dollars in activision and chat gtt. now, things we're going to have to look for on the left side is cloud growth cloud growth is slowing down before, you know, in quarters past, we would see high 40 percentage points or and 50 percentage points in azure growth that's going to go all the way down to about 36 to 37%, according to the wall street estimates. and look, that is because of so many headwinds facing the cloud business you have foreign exchange and reduced spend among small and medium businesses. that's what's hurting cloud growth, and we've got to talk about consumer demand, kelly, windows, people are just not buying pcs the way they were during the pandemic and that hurts the more personal computing businesses that hurts licenses as well. >> the bread and butter. about 24

satya nadella has been open about this lasting more than just a quarter, more than just 12 months.ng is tough right now, and we know ad revenue is cyclical. depending on the duration of this downturn -- and no one has a crystal ball in terms of how long this is going to be -- add pricing is set by the advertisers. it is a bidding mechanism. it is not software where you get to set your price and you can raise prices because it is a sticky. add pricing is eating-based, and i don't think it is going to come back until the economy rebounds. you will see pressure on google search revenue, youtube ad revenue, but i think they still have kind of the timeshare when it comes to people spending time in their products, and eventually the cyclical rebound will happen. it is just a matter of controlling costs right now. jonathan: the labor force at these companies over the last couple of years have grown exponentially. get amazon. it basically double to 1.5 6 million. the question i keep asking -- and i would love your insight on it -- some of the excess in the last decade, i do you think about

. >> if you were satya nadella, how would you prepare for the future where would you be investing whatw would you be positioning microsoft -- >> i think they're doing all the right things the company has done extraordinarily well under satya nadella. i do think one of the highlights, joe, is this big investment, actually their third round in open ai i don't know what's going to app at facebook with the metaverse but open ai is going to be a big deal the other thing that will be helpful to microsoft going forward is they were hurt badly by the strength in the u.s. dollar and now that's going another way. there are a couple of reasons to be a little bit more optimistic, but your question about when to buy it, i would buy this thing at 220 a share it looks like it's going to open 235 or so. and last night during the conference call, at one point it was up to 245. like you says in the lead-in, people were relieved that the quarter weren't so bad but they were disappointed in the guidance. >> gaming is a metaverse play, isn't it >> yeah, i think that will be interesting and they continue to

earlier this month, satya nadella does say he sees challenging time for tech. >> the next two years areoing to be the most challenging we did have a lot of acceleration during the pandemic, and there's some amount of normalization of that demand, and on top of that, there is a real recession in large parts of the world, so the combination of pull forward and recession means we will have to adjust, and that will cycle through the demand cycle, and in fact, come out of it with what can be another massive growth cycle for the tech industry. >> they have been eliminating some open positions santand pau some hiring, jim we'll see if we get this today >> i do believe that i'm waiting for that but the nasdaq, that is from january 4th. and that's the day the nasdaq rally began. and i think that one of the reasons why -- that's very contrary, but there were many shorts being built into that period, and i think the shorts got their event, which was satya -- no one really saw that interview coming, but that it was time to sell, and they have had their heads handed to them, because the market's bee

microsoft ceo satya nadella spoke of the need for caution as parts of the world go into recession..7% in november. that drop was due to lower fuel prices, but it's offset by rising costs of food, transport and hospitality. let's talk about food because you see that energy prices, since we have been talking about energy, are coming down and that has helped bring the top level of inflation downwards a little that it is food is it not. looking at basic staples like milk, eggs, cheese, sliced white bread, they are well over 10.5%. in white bread, they are well over io.5%. in fact you are paying almost double for to pints of milk of the moment. can you hear me? sorry. it is true that— moment. can you hear me? sorry. it is true that we — moment. can you hear me? sorry. it is true that we have _ moment. can you hear me? sorry. it is true that we have seen _ moment. can you hear me? sorry. it is true that we have seen inflation i is true that we have seen inflation io is true that we have seen inflation go up _ is true that we have seen inflation go up in _ is true that we have seen inflat

and as pc unit sales tank, this may be the only thing that satya nadella has talked about and looks tong out of covid as sort of the center piece of the digital world. he sort of implied you were going to see consistent growth in pcs and that just doesn't look like it's going to be the case at all. so when you look at valuation of microsoft, and you kind of look out into the future, based on revenue, too, because the macro backdrop is affecting most of their businesses, but also profit those numbers that you look at, even though they're not really cheap, they're probably even higher multiples than people realize. >> john, let me ask you, satya may have been wrong that the growth was going to be steady and tlefrb forever, but could you be wrong that the decline of the pc, and these things getting tossed aside, could that not be a long term story either maybe this was a case where sales were pulled forward for a year or two. >> we're not saying that pc is dead, and it's gone away it's certainly not, but you're right, probably pulled forward a year or two. a gy year or two was what he sa,