id:2023-07-28-04:37:29:406t

Hi Everyone. This is Take Off. We're like the cheat codes to your favorite video game - empowering, game-changing, and providing an edge in the tech ecosystem.

Here's what we're serving up today:

• Microsoft Misses the Mark ❌🎯

• Google Aces Earnings 💯

• Asteroids ☄️

• Wednesday Wires 💰

Microsoft Misses the Mark ❌🎯

Earning’s exam season is here and it’s time to check the scorecards. First up on our list is the company that started the AI arms race this year - Microsoft.

Here’s a look into the digits for (NASDAQ:MSFT):

1. Total Revenue: $56.2 Billion (+8%)

2. Net Profit: $20.1 Billion (+20%)

3. Cloud Revenue: $24 Billion (+15%)

4. Office Revenue: $18.3 Billion (+10%)

5. PC Revenue: $13.9 Billion (-4%)

Looking at the numbers, Microsoft had a pretty good quarter, to say the least. It toppled Wall Street’s expectations for both top-line and bottom-line numbers.

However, despite the impressive numbers, it’s shares went a bit Humpty Dumpty and had a fall of about 4% in after-hours trading.

Why, you ask? Well, a couple of reasons.

1/ AI is not a “Get Rich Quick” Scheme

We can safely say that Microsoft and OpenAI get the credit for starting the 2023 AI revolution that has seen 3246369 other AI companies hop on to the trend.

As much as Wall Street has been dreaming of instant gratification from AI, CEO Satya Nadella gently reminded everyone to buckle up for a longer ride to see AI’s results to produce actual dough.

2/ Lower Revenue Guidance

The company also placed next quarters revenue bets to be $53.8-$54.8 billion, which despite projecting an 8% growth, fell shy of the Wolfs expectations of $54.9 billion.

Microsoft’s main game plan involves selling its AI-boosted software, with some fireworks also expected to take in Azure.

As firms start letting AI loose, they’ll need more computing power, and that’s Azure’s cue to step in.

And sure, this past quarter’s 26% growth isn’t exactly crawling – but investors will be hoping for a return to the glory days when Azure used to sprint at a pace of 35% plus.

So, AI could be a cash cow in the making, but it's going to take some time before it starts moo-ing money.

Google Aces Earnings 💯

Despite whispers of doom and gloom in the online ad market and pesky AI chatbots trying to steal its thunder, Google is not just surviving; it's thriving, baby!

Posting a rather attractive 7% revenue hike, the tech giant clearly isn't ready to relinquish its throne any time soon. Here’s a quick look at the numbers:

1. Total Revenue: $74.6 Billion (+7%)

2. Net Income: $18.4 Billion (+14%)

3. Ad revenue: $58.1 Billion (+3%)

4. Google Cloud Revenue: $8 Billion (+28%)

5. Youtube Revenue: $7.7 Billion (+4%)

Google's search revenue saw some steady growth, quelling the anxiety of investors who have been losing sleep over the idea of users jumping ship to generative AI chatbots from the likes of OpenAI and Microsoft.

Google's execs, in their cool-as-cucumber demeanor, seem confident that the only way is up. They threw around the term 'AI' like confetti at a wedding, promising its integration across the company.

Another interesting thing to note here is Google’s cloud biz. This division has been growing constantly and hit $8 billion in Q2 with a 28% YoY growth.

Pichai says that a lot of new AI companies seem to have a crush on Google's cloud technology with over 70% of unicorns in generative AI being their Cloud customers.

Big G sure had a blast yesterday which was good enough for the Wolfs over at Wall Street as well, who sent the stock (NASDAQ:GOOG) shooting up by 6%.

☄️ Asteroids ☄️

GitHub and others call for more open-source support in EU AI law. They want clear AI definitions, freedom for hobbyists, and accessible testing. 🤖💼

OpenAI can’t tell if something was written by AI after all. They’ve shut down its tool for distinguishing between human and AI-generated text due to its low accuracy rate 📝🤖

Spotify is bumping up its prices for the first time since 2011! The single-account premium plan is rising globally, with prices in the UK and US, among others! 📈🎵

💰 Wednesday Wires 💰

Solink, a physical security company, just raised an impressive $60 million in funding. They offer innovative security solutions using cloud video analytics and AI. 🎥🔒

Dutch startup Bunq raises $111 million to expand its banking services for digital nomads and expats in Europe and the U.S. Founder Ali Niknam's "third unicorn" is on a mission to make banking simple and sustainable! 🦄💼

Gushwork.ai, a startup aiming to revolutionize BPO with AI just raised $2.1 million in funding! Their platform connects businesses with offshore workers skilled in AI applications 💼🤖

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