Microsoft Hits $40B in Quarterly Sales and Elon Musk Launches GameStop At High Velocity
Microsoft has found big gains during the pandemic, largely in part due to their reliance on cloud computing and ability to keep employees connected while they work from home. Moreover, their recent sales in the cloud and personal-computer markets have beat expectations greatly as demand for PCs continues to surge.
This is also a boost on competition such as Amazon’s “Amazon Web Services”. With such progress, Microsoft was able to surpass $40 billion in sales and $15 billion in profit in a quarter for the first time on Tuesday, boosting shares up from their record closing price.
After trading hours this Tuesday, Elon Musk casually tweeted “Gamestonk!!, immediately sending over $3 billion in market cap to GameStop whose price continued to rocket up. Many think GameStop still has some fuel as investors have created a positive feedback loop by buying tons of shares, call options, and forcing hedge funds to cover their shorts. The fun will end, it is just a matter of when and how quickly.
After Citadel and Point72 had to bail out Melvin Capital, it may only be a matter of time before they all require a bailout from the NY Fed itself.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.