Microsoft's Miraculous Comeback Explained

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Since 2015, Microsoft's growth has been unparalleled, overtaking Apple and Alphabet and reaching $3 trillion in market capitalisation to become the most valuable company. In this video, we take a look at why Microsoft is booming, and whether it can last.
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1 - www.economist.com/briefing/20...
2 - jitha.substack.com/p/sunday-r...
3 - archive.nytimes.com/economix....
4 - www.investmentnews.com/equiti...
5 - www.economist.com/briefing/20...
6 - www.economist.com/leaders/202...
7 - www.bloomberg.com/news/articl...
8 - www.economist.com/business/20...
9 - en.wikipedia.org/wiki/Acquisi...
10 - www.economist.com/briefing/20...
11 - www.economist.com/briefing/20...
12 - www.theverge.com/2024/5/21/24...

[@Dave-cg9li]

A lot of people don't realise how big part of the internet runs on servers of Amazon and Microsoft. They're so much bigger than it seems 😅

[@thecreativemastermin]

Developers!

[@mitchellblair3935]

Yeah it’s like 40-50% of internet traffic on weekday nights goes over Amazon servers because they host both Netflix and prime and everyone be streaming

[@manmeesarma2413]

And a lot of people who realises this also fails to realise that all these huge datacenters are run by nvidia hardware

[@justmeajah]

​@@manmeesarma2413 this!

[@phamquanghuy8000]

And most of NVIDIA hardware were manufactured by TSMC ​@@manmeesarma2413

[@ChineseKiwi]

Hey everyone: It is the ENTERPRISE stuff that makes all the money, not you or the gaming divisions.

[@ayoCC]

Everything runs on Azure and DevOps now

[@redfish3858]

And government

[@ChineseKiwi]

@@redfish3858 which is enterprise.

[@vinesauceobscurities]

Adobe had the right idea.

[@BOZ_11]

not exactly true. licences for windows (consumer space) is a money printing machine; every OEM is paying MS money for pre-loaded windows, and 90% of PC's sold are windows PC's. The consumer market is much larger than enterprise, just ask Apple, who have nearly no presence in enterprise compared with MS, and are worth $3tn (market cap) anyway. I work in the enterprise space, so don't contradict me over Apple's presence. I know it's weak

[@Money8OOST]

Me using cracked windows apparently didn't slow them down

[@ChineseKiwi]

They make all their money off enterprises in reality.

[@thripnixe]

Because they let you with intention, other rising competitors like chromeos and linux are free.

[@adamkamienski7322]

they just don't care, most of their revenue comes from enterprises

[@steauafan4ever]

I mean you can buy windows keys for like 10 $ it is not that expensive

[@larryace4683]

Bill Gates stated that he would prefer people using fake Windows than use Mac or Linux

[@BusterDarcy]

Why do I feel like I just watched one long intro to a full video on the topic that’s never coming?

[@Vivienedouglass]

No matter the Fugazi around Nvidia, I still believe in Microsoft and it has not disappointed I already 0wn shares of Microsoft, TSLA, NVDA and APPL as well. Sure, I don't mind having these equities sit around for a while, but I'd also like to appreciate short-term opportunities that could fetch $200,000 or less..

[@AmithKaury]

If you need advice on short-term investments, consider speaking with a financial advisor. They have a lot more knowledge and expertise in this area.

[@kurtKking]

A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K.

[@Kaustavpatell]

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation.

[@kurtKking]

I've had majority of my holdings in ETFs, tech stocks and I've had 45% increase in my portfolio, especially with Nvidia P/E (price to earnings ratio) adding few others, personally, MICHELE KATHERINE SINGH take good care of my holdings.

[@Kaustavpatell]

This recommendation is coming at the right time because i am literally grasping for straws at the moment! I verified her online and scheduled a phone call with her.

[@calvin7330]

I think the Satya era can be split into two periods, cloud focus (Azure and MS Office 365) that propelled them dorm a dying company to second-tier behind Facebook, Apple, Google, and Amazon, and then the post-pandemic AI boom that pushed them to #1.

[@cyberrb25]

I feel Nadella is doing the old Gates play, but as they're no longer the biggest player in the current segment of interest (mobile, and sometimes social networks), they're just out of the antitrust hammer.

[@cyberrb25]

Though I wouldn't say Microsoft has actually learnt all the good lessons: Xbox leaders were saying a year ago about how they failed by disbanding Lionhead (Fable creators) for them to just now have 4 new studios, one with glowing praise and good metrics according to themselves, shut down.

[@thecreativemastermin]

Developers!

[@Space97.]

​@@cyberrb25this didn't age very well 😂

[@mkb6418]

So Windows shifted from a technology company to a technology fund. It makes sense to be honest. Microsoft was never intended to create an OS, and was never intended to become a fund, but... well that's life

[@azuresflames2473]

So would these quasi-mergers make microsoft a sort of tech-focused investment firm? They are utilising their large amount of capital resources into tech startups in hopes they would success and microsoft would then gain benefits from it.

[@SherwinCeleste-cj7ng]

MS Office and Azure hard carried

[@ericmyrs]

Azure is so good though.

[@michahcc]

Developers

[@samalexander273]

Developers

[@odolwa099]

Developers!!

[@aaro96live]

Developers!!

[@okman9684]

Developers....

[@HarryMbise1]

Developers!

[@TheMysteryDriver]

GE just got murdered by it's CEO. Crazy.

[@thripnixe]

All now microsoft needs is a new xbox ceo

[@alexs_toy_barn]

They havnt made a good killer for app for Xbox since 2012

[@KingAgniKai]

Xbox is going 3rd party. Leaks have shown the next Doom is gonna be on PS4/PS5. It's over.

[@notKhalid]

why?..did the old one got nuked or something!?

[@olegshkurenko-0448]

I think that is a antitrust defence​@@KingAgniKai

[@jonanddy]

Xbox is doing really well especially with gamepass wym

[@ascendnextlife7092]

Waiting for windows 12

[@thecreativemastermin]

Developers!

[@Hardcore_Remixer]

You do realize it will likely have even more spyware and AI shoved in it to use your resources to mine your personal data, right?

[@Space97.]

Same I can't wait for windows 12

[@obvinpro]

Enterprise money can't be compared to your average consumer money, ask NVIDIA.

[@jimbeauchamp7736]

Fantastic brilliant education on Microsoft success & future!

[@chicitizen]

Now if they could just fix their gaming division.

[@Miamcoline]

Super interesting and helpful

[@foxdeleon]

How Nvidia Became the Most Valuable Company might be the story for next week Keep on making great videos!

[@handbanana4899]

Typical big company strategy. “If you can’t beat them, buy al their shares”

[@guss77]

Microsoft now runs more Linux instances than Windows...

[@atomicfly777]

MS was almost a sure bet from the beginning, as they quickly became the default PC platform, with a wide moat. The video fails to mention that most tech stocks traded sideways in the 2000s due to the tech bust followed by the banking crisis, which as like a double knock out punch. Balmer was not a good leader but the 2000s were bad overall for the market.

[@HKashaf]

Microsoft had huge footprint in enterprise customers so it was obvious that Azure cloud would greatly expand and take on AWS. Their investment in OpenAI was ahead of its time and very smart, unlike Apple who pursued do design an electric car rather equip Siri with AI intelligence. They are still lagging in smart phones. They have done incredible backend upgrade to integrate Linux into their platforms and OS. Their current success is a result of years of not a full decade of smart investments.

[@okman9684]

I think microsoft is better at dodging politics. We haven't see Satya in any DOJ hearing. They literally brought all CEOs of major companies but surprisingly not from Microsoft

[@Trugentleman02]

Microsoft sure is trying to shove co pilot down users throats now.

[@watchthe1369]

Cortana's data scraping allows the sale of statistical data, then the ruthless scraping of all the game development dead wood has also gone toward that turn around. I ain't buying another Xbox, nor am I going to be buying into windows 11 with out being trussed up like a mental patient and forcibly converted to the unholy cause.

[@jlhidalgo]

Steve Ballmer is a "dream come true" to overpaid CEOs trying to justify that they should be paid a lot more. They just have to say "look at what a mediocre CEO can cost you"

[@AmateurHEROduelist]

Still can't believe Bill gates named his company after his pee pee.

[@djtomoy]

And yet excel has been stuck at 1,048,576 rows for 14 years

[@justmeajah]

Lol

[@cheesebiscuits6323]

As a writer, I *REALLY* hope AI is a bubble

[@RillianGrant]

There's definitely going to be some hype bubbliness but I don't see the tech going anywhere

[@islam.i]

As an AI engineer, it's not a bubble.

[@mariussorohan938]

As a human, you shouldn't hope for that.

[@islam.i]

@@mariussorohan938 It's the natural progression of life, a lot of jobs became irrelevant and obsolete with new technologies through the human history. and at the same time created more new jobs.

[@_monti142]

​@@islam.iofc you would say that

[@aaaaaaaaaaaaaaaaaaaa69]

I don't care what anyone says, I will never upgrade from my unregistered copy of Vista

[@justmeajah]

VISTA?!?! WOW it's still working?

[@Hardcore_Remixer]

​@justmeajah Of course. The only issue is that it isn't very secure and may lack support for a lot of software. Windows XP already contacts viruses by simply accesing the Internet.

[@EchoMountain47]

Funny to think Google invented the transformer technology ChatGPT runs on but their own attempts at a similar product are so inferior. I’ll take my pizza with extra glue, please 😂 🍕

[@TomNook.]

Azure. That's all.

[@rayray117]

Microsoft pretty much buys companies that make them money.

[@Gamez4eveR]

That's literally standard practice for all big tech companies lmao Calling out only Microsoft on this is silly when Apple and Google do this just as much

[@user-zj5kn8go8k]

like Nokia Skype

[@me-myself-i787]

​@@Gamez4eveRNo they don't. Apple doesn't do many acquisitions and the ones they do are cheap (e.g. Beats by Dre or the touch ID company), and Google doesn't do many acquisitions either (Motorola, KZbin, Android... Most of the acquisitions were from a while ago.) These days, Google mostly develops stuff in-house.

[@juniorbitare3041]

@@Gamez4eveRGoogle yes, Amazon yes, meta yes. But Apple no.

[@Gamez4eveR]

@@juniorbitare3041 what is this delusion en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Apple

[@spageen]

Nadella is an absolute genius

[@purpinkn]

name one successful product since he started

[@spageen]

@@purpinkn your mother

[@Envengerx]

​@@spageenI am curious what's your age? Just want to know at what point in life people watch videos of Microsoft and at the same time think "you mom" replies to a genuine question they can't answer seem smart.

[@ChadPANDA...]

​You wasted piece of semen , watch the video Azure is te biggest product made under him ​@@purpinkn

[@katmoviehd169]

@@purpinknthats the catch they became the most valuable company without even having a successful product from the past decade for themselves. Thats some pure business

[@prodlowd]

Snapdragon X Elite is going to be big

[@katmoviehd169]

imo sd x chips paired with windows starts a new generation of consumers. Microsofts big brain move is to hold on a os thats becoming irrelevant each passing minute yes I am talking about windows but after the release of copilotplus pc it flourish again. Windows will becoming relevant again just like its a new age tech.

[@Hardcore_Remixer]

​@@katmoviehd169 Windows has always been the most relevant OS for the end user. Imagine Windows magically disappearing from existence. It would be a huge shock (before things would be better because Linux would likely become the new standard). Ironically, its number of users started decreasing in favor or other OSs (especially Linux) after Windows 11 launched and especially after M$ started shoving AI and more spyware in it.

[@cgt3704]

That resurgence may be caused by microsoft buying more important gaming companies like Activision.

[@angae9319]

❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤

[@Makoto03]

I hate how much Microsoft has recently decided to overrule the Xbox division lately. They used to let it do its own thing but after the Activision/Blizzard acquisition, they've started running it like their other divisions. Which meant more anti consumer practices. Difference is that gamers aren't going to put it up with it like others.

[@user-hx1sp2zu6p]

Microsoft has not innovated a lot. It has just transistioned into a subscription model. Customers do want to move away from Microsoft. We use development vm machines based on Ubuntu instead of Microsoft

[@ericmyrs]

All our containers run Alpine. But they're hosted in Azure.

[@BOZ_11]

@@ericmyrs So Microsoft's plan is working perfectly. Don't wanna use Windows? Fine, run your VM using our hypervisor; which runs Windows 🤣🤣

[@puelocesar]

Let’s see how long this holds when the AI bubble bursts. They will continue strong thanks to Azure dominance, but I don’t buy all the hype in the “ai pc” they are pushing

[@marioprawirosudiro7301]

What would happen is right there in your second sentence. Tbh, if the AI bubble burst, I don't expect them to keep their no. 1 position, but they'd most probably still be top 3. Simply because, well, they're not exactly an AI company. As the video said, they're not doing any AI development. They're profiting from all those AI companies they invested in three ways: 1. They can use the products these companies develop for their own product (e.g. Copilot) 2. Their stock is tied somewhat to these companies stocks, especially OpenAI - people see OpenAI stock go up, they'd probably be thinking of Microsoft and Nvidia next. 3. These companies are forced to use Microsoft's cloud for their needs. Once the bubble pops, Microsoft will certainly lose no. 2, but they'd still keep 1 and 3. Meaning they'd still have advanced AI capabilities for whatever products they want to make, and Azure's market position would have been strengthened immensely. In other words, in Microsoft's point of view, if the AI bubble continues, great, but if not, hey, no biggie. On the other hand, all those other big techs that triy to develop their own AI solution - Meta, Google, maybe Apple(?) - would be wasting not just money, but also engineering time.

[@morb0yo]

A lot of this video is spent talking about Microsoft's very recent AI endeavours which has nothing to do with their success in the last decade. It's pure speculation whether those AI acquisitions will be fruitful and yet you almost completely disregard Microsoft's success in the cloud computing field. Azure and 365 have become major services for businesses and governments worldwide and it's poor how little you mention this. It seems that even TLDR isn't immune to the AI bubble.

[@corz299]

Cant complain, id prefer Microsoft to chinosoft

[@vanshkharidia9942]

Amazing insights

[@siegfried19888]

I miss windows phone. I worry that Windows being stuck on desktop and not getting into mobile or AR VR Will lead to its slow death as desktop becomes more irrelevant.

[@philip4534]

My broke ass used most of my savings and bought 25 Microsoft shares when they were $60, now I have ~27. Still broke though because it was when I started my Roth IRA

[@seungjoonkin8970]

Don’t underestimate MS’s ability to ruin large aquisition. Nokia, Mixer, Zenimax, and now Activison blizaard. They always find a way to fail

[@jayclarke777]

The developer in your country that made "Lies of P", certainly doesn't think so. They put the game on Microsoft's Game Pass.

[@terencemok1243]

shoutout jordan terence and stephen

[@IanG99]

They literally closed down 4 gaming studios. I know you don’t become a trillion dollar company without a few broken eggs but not sure becoming the most valuable company at the cost of workers is anything to celebrate.

[@SJokes]

They were already at the top before those studios were closed...and those studios make up less than 1% of MS's entire workforce

[@duerf5826]

MS stock is doing well right now. The last thing Nadella wants is for XBOX of all things to bring down the stock price. And even if you make a lot of money, is it right if you keep using that profit to subsidize money losing divisions for perpetuity? It creates a environment of complacency which has been evident with the XBOX studios for the last 5 years or so.

[@KingdomChablo]

Don't be stupid man

[@mycodingchannel9690]

us shareholders celebrate. F the workers! Labour Value Theory by Adam Smith doesn't matter. It is what it is. The world doesn't have to be fair.

[@zachb1706]

To be a good CEO you can’t be afraid of layoffs.

[@wayando]

Windows is spyware these days ... It is basically a free OS for regular consumers, BUT we pay with our data. Enterprise versions are abit better ... But they seem to be going the spyware direction too.

[@BOZ_11]

it's not funking free. stop repeating this lie. If it's pre-loaded, you paid. If it's a retail copy, you paid. You pay either way

[@wayando]

@@BOZ_11 ... All computers pay the Microsoft tax ... Even the ones that come without an OS ... They cost the same. So I would say it's technically free.

[@BOZ_11]

@@wayando are you daft? Where do you think businesses get the money to pay the ms tax, if not from their customers?? It's all us

[@wayando]

@@BOZ_11 ... Let me put it like this: ... I have never paid for Windows after Win98 ... And neither do I know someone (not a business) who has removed money from their pocket to pay for Windows. And I have a valid license, and the computer gets updates and everything. Why ... Because that would be DOUBLE PAYMENT. The cost of the OS is already built into the hardware.

[@romitkumar6272]

@@wayando You have never paid separately. You have paid for it. Some of the cost of every PC you have bought was spent on the license. That's like saying you have not paid for a processor since 2000 because you have only bought pre-built PCs since then. You have, you paid it to the people assembling your PC, the middlemen, who then paid it to the chip manufacturer.

[@nholmes86]

Developers please 😂

[@myoriginalname]

Be cool if they would f off the gaming industry or at least stopped acquiring successful game studios like Tango just to shut them down right after.

[@chocolatemilkshake9168]

You know as much as I admire him, I hate that my dad admires him. Cuz of his indian background, indian pushy parents see him as a role model for their kids ... as if wealth is the only form of success. It's been four since I have gotten good sleep thanks to exam pressure just to get a college that offers high placement. Man i hate this world !!

[@ayoCC]

No one has to succeed in everything, it's enough to do well in a way you can achieve a comfortable life. Quality of life is not just money, it's health, relationship, vanity. They all have a component of money, but you can't really be healthy with money alone, you're not going to achieve your most treasured relationships with money alone.

[@mycodingchannel9690]

@@ayoCC surely you're a business man wanting less competition

[@jerzyczajaszwajcer]

bald'mer :p

[@jerzyczajaszwajcer]

cloud brings em money - ai brings em hopes and stock price is based on profits and hopes

[@leakyabstraction]

Funny. I am actually considering to sell my Microsoft shares before the possible AI bubble burst next year. I think it might be the downfall of Microsoft and Nadella. I haven't seen a single working, useful feature, and it genuinely seems nobody at all wanted all of this to happen, except just having a funny AI chatbot. Microsoft is desperately trying to shove down AI "features" on people's throat to generate a return on their significant investments. Not to mention the acquisitions in entertainment/gaming that proved to be incredibly destructive and mismanaged, generating high levels of negative sentiment over their entire Xbox business.

[@coshvjicujmlqef6047]

Nedella is destroying windows with shit like recall

[@gssbcvegancat2345]

So when will the EU stop ruining a good time for everybody else?

[@Mahm00dM0hanad]

Teams is garbage compared to zoom, one drive is so annoying compared to google drive, outlook is so frustrating compared literally to any other email service, Xbox and windows store are jokes compared to steam or epic, windows phone is a failure, bing is just like any other search engines, Cortana was a failure, copilot is so invasive, dangerous and creepy, and windows on ARM has never been a good option. I don’t know why people still using their products

[@caseclosed9342]

So this guy was the original Carlos Matos…

[@lenowoo]

Weird. . Talking about Microsoft revival yet it didn't go deep into its enterprise and sas strategy. Instead he talk about ai, gaming, and hardware that's hardly make massive impact overall. Weird,.very-very weird. ❓❓❓❓ The ai bet is literally still in its initial run, for all intent and purposes it can go bust in 2 years. And it's something very recent too. Activision acquisition is taking toll on Xbox brand. And their hardware business isn't even worth talking . This video barely explain what's on the title.

[@felipecantalice5326]

Tell me about Google

[@jerzyczajaszwajcer]

its booming due to cloud like aws

[@zj4431]

Xbox killed tango gameworks even tho its got success

[@fatboyslim458]

Nerd rant not to be taken seriously: There is a lack of Linux on your market share graphs, I don't care if it is basically just the X-axis, we exist!!!!!

[@user-pp5cm1sc7x]

all four percent of you

[@BobAg_]

Used to be 1%. That's exponential 😂

[@EchoMountain47]

I’mstill clinging desperately to Win10 as long as I can. What they’re doing in Win11 sounds awful, overbearing and intrusive

[@MrBahjatt]

Nadella is rotten to the core, he's only less rotten than Microsoft's investors. Microsoft is just a server provider for big corporations.

[@RightSideNews]

Bought the day they announced new CEO.

[@Prakhar2410]

Wow, good decision!!

[@paulbo9033]

Market cap is not the metric you should be using. Its earnings.

[@jebuskmiest]

Theft

[@oliverd.shields2708]

We now know what the difference is between glutenfree and glutious piza, that the dinosaurs were right and the altright was right, too.

[@jerzyczajaszwajcer]

also ms has xbox

[@veraxiana9993]

Boo Microsoft! Boo trillon dollar companies & monopolies!

[@romitkumar6272]

That's not what monopoly means

[@withpikachu2402]

How did Microsoft came back? One word: Edge. You are welcome

[@pingukutepro]

I wish enterprise could dump them globally

[@willi1978]

i don't see it happening. but i don't like where things are going with windows. i don't want to have ads and ai in my os that i can't turn off

[@pingukutepro]

@@willi1978 Perhap anyone who works in any enterprise could at least make a complaint to their boss and IT department about window. Little bit like that could help

[@willi1978]

@@pingukutepro i'd be happy to have a main device with linux on it but i never thought about asking for one, they only set up machines with windows.

[@MaxMustermann-on2gd]

"asjuuuur" ... Wtf

[@genericusername5909]

Microsoft under Nadella has become a boundaryless predatory creep and recall is just the logical progression

[@xhy20x]

Microsoft were just lucky. Nothing to do with innovation

[@SJokes]

Tbh i dont see how a company is lucky for 10 years straight

[@xhy20x]

@@SJokes They invested in a technology that has transformed their fortunes. You spread the net wide enough, you get lucky. MS is an awful company.

[@0401412740]

All computers run Microsoft software