Investment Comparison: Microsoft vs. SpaceX
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Microsoft's Financial Performance: Microsoft reported an 18% revenue growth in the last quarter, reaching $82.9 billion, with its AI product lineup achieving a remarkable 123% annual recurring revenue growth to $37 billion, indicating strong performance in AI despite cautious market sentiment.
- Nebius's Rapid Growth: Nebius achieved a staggering 684% year-over-year revenue growth in Q1, with projections of 550% growth for 2026, showcasing its competitive strength in AI cloud computing, far exceeding SpaceX's growth potential.
- Nvidia's Value and Growth: Nvidia is expected to achieve 81% revenue growth in FY 2027 and 41% in FY 2028, with a price-to-earnings ratio of 31, making it attractive compared to other tech stocks, highlighting its critical role in AI workloads.
- SpaceX's Market Position: While SpaceX is the largest IPO globally, its projected revenue of $18.7 billion for 2025, with a growth rate of 33%, reveals its disadvantage in the fast-growing sectors compared to Microsoft and Nebius.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 399.760
Low
500.00
Averages
631.36
High
678.00
Current: 399.760
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Reaction: Following the deal's collapse, Microsoft shares fell by 2% while Oracle's stock dropped by 2.3%, reflecting market concerns about the future collaboration prospects of both companies, especially amid rising demand for AI hardware.
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See More
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See More
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- Rise of Open-Source AI: Following the Anthropic incident, Chinese open-source AI firms like Zhipu and MiniMax saw significant stock price increases as investors bet on a surge in demand for downloadable models, indicating a market shift towards self-hosted solutions.
- Market Dynamics Shift: Microsoft CEO Satya Nadella's warning about the need for companies to build sustainable systems to retain IP control reflects a growing demand for diversified AI suppliers, particularly in the current competitive tech landscape.
- Cost-Driven Transition: As the prices of high-end AI models rise, companies are increasingly turning to cheaper open models to cut costs, prompting them to reassess previously dismissed Chinese open models, highlighting a growing focus on value for money in the market.
See More
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- Chip Stocks Decline: With Marvell Technology and Intel falling over 9% and 8% respectively, the weakness in chipmakers weighed on the broader market, suggesting that the pressure on tech stocks may impact future investment sentiment.
- Weak Housing Data: U.S. May housing starts fell 15.4% month-over-month to a six-year low of 1.177 million, below expectations of 1.430 million, indicating that the weakness in the housing market could pose challenges to economic growth.
- Oil Prices Plummet: WTI crude oil prices dropped more than 5% to a 3.5-month low due to the U.S.-Iran agreement to reopen the Strait of Hormuz, enhancing expectations for a revival in oil supplies, which may affect the performance of energy stocks.
See More
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- Investor Confidence: Investors' enthusiasm for SpaceX stems not from its current earnings power but from trust in Elon Musk's transformative business capabilities, as Cramer notes that this trust drives the company's valuation far beyond traditional metrics.
- Future Revenue Projections: While SpaceX currently operates at a loss, Musk projects annual revenues could reach $1 trillion by 2030; Cramer believes investors are focused on Musk's successful track record and the potential for future growth.
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See More
