[trdtaylor1]

Notice how the stock cratered after hours? Growth is slowing on cloud revenue. It's lower than expectations. Cloud is a big reason for the expanded PE ratio on both Amazon and Microsoft. Amazon reports in 2 days, already it's taking a hit. A bit of the assumption is cloud spending would not be as impacted as the Microsoft one is showing. Tech companies in general will likely show red tomorrow, as the markets digest this news.

[sbelskie]

I’m sure they will be red but MSFT has PE of ~25 which is pretty boring for a “growth” tech stock. AMZN has a PE of >100 and is one of the few remaining outliers among big tech companies. The rest are much closer though not exactly equal to boring blue chip PE ratios.

[jl2718]

But cloud is still growing while the stock drops. This tells me that the cloud investment thesis is incorrect, and investors actually care more about PC Windows and Xbox. This makes more sense because cloud compute is destined to become a low-margin commodity, while Windows and Xbox are protected brands.