Fast Money Blog- 1/27/23
This week we saw some major companies deliver their earnings.
On Tuesday, January 24th, Microsoft Corporation (MSFT) reported their Q2 2023 Earnings.
The company posted revenue of $52.7 billion, an increase of 2% year-over-year.
Microsoft Cloud revenue was $27.1 billion, up 22% year-over-year.
Microsoft Azure is currently being used by over 200,000 companies, including Verizon, GE, Adobe, Coca Cola, Hilton, General Motors, Apple iCloud and Dell.
Their Productivity and Business Processes segment, which includes Dynamics, LinkedIn and Office, brought in $17 billion, an increase of 7% year-over-year.
Revenue in the More Personal Computing segment, which includes Windows, Xbox, Surface and search advertising, was $14.2 billion a decrease of 19% year-over-year. Essentially they saw a slowdown in small business and individual spending for Microsoft 365 productivity software subscriptions and Windows Commercial products.
Overall MSFT is a fantastic member of the Dow Jones and I expect the stock to go significantly higher in the next 24 months.
On Thursday, January 26th, both Mastercard Incorporated (MA) and Visa, Inc. (V) released their earnings.
Mastercard
Mastercard posted spectacular Q4 2022 earnings with revenue of $5.8 billion, up 12% year-over-year.
For Q4, the company saw gross dollar volume up 8% to $2.1 trillion and cross-border payments volume grew 31% to $1.8 billion. (Cross-border spending occurs between parties originating in different countries from one another.)
As of December 31st, 2022, Mastercard’s had issued 3.1 billion Mastercard and Mastercard branded cards, which includes gift and debit card.
During Q4 2022 Mastercard paid out dividends worth $473 million.
Currently this stock is less than $10 off its all-time high, which in this market is amazing. I see Mastercard as an excellent long-term hold.
Visa
For Q1 2023 Visa posted revenue of $7.94 billion, representing an increase of 12% year-over-year.
Across the board Visa had outstanding numbers.
Payments volume increased 7% over the prior year.
Cross-border volume, excluding transactions within Europe, increased 31% year-over-year.
Total cross-border volume increased 22% in the quarter year-over-year.
Total processed transactions, which represent transactions processed by Visa, were $52.5 billion, a 10% increase over the prior year.
The company also returned $4.0B of capital to shareholders in the form of share repurchases and dividends.
All of these reasons, plus the fact that the stock is holding near its all -time high, make Visa an excellent long-term hold.
There are plenty of major earning reports yet to come, and next week we will get them from Apple, Inc. (AAPL), Pinterest, Inc. (PIN) and Amazon.com (AMZN).
Although Wall Street may have challenged your wealth building beliefs over the past 9 months, the market is showing signs of extreme resilience. I see stocks experiencing a major retracement in 2023.
Tyrone Jackson
The Wealthy Investor