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Microsoft reports $22.6B in Q4 revenue

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Re: Microsoft reports $22.6B in Q4 revenue

#61

Post by sidereal1 »

lanevorockz wrote: post #57
lloyd-christmas wrote: post #54

Earlier quoted context omitted.

> Not according to GAAP rules... Not "rules" but "guidelines". Or quite literally, "principles". "... stock soars" The thing is that GAAP vs Non-GAAP is pretty irrelevant unless they regularly change how they do it. If a company reports non-GAAP earnings every quarter with the same methodology, it's effectively the same as reporting GAAP. People on wall street aren't dumb. There is a reason the reaction was positive.…

This belief that Wall Street is always correct is exactly what caused the previous economic crash. Speculators don't care about a correct investment decision is about riding the trends. If people are buying, it doesn't matter if you don't agree .. you have to buy as well it works as a hedge. btw, don't say " for the non-finance people " -> it's very arrogant and bankers are already hated as it is.

There's a lot more to finance than "evil bankers"

Re: Microsoft reports $22.6B in Q4 revenue

#62

Post by deviate_X »

lloyd-christmas wrote: post #54
julsimon wrote: post #6

Not according to GAAP rules... http://www.zerohedge.com/news/2016-07-19/microsoft-misses-ga...

> Not according to GAAP rules... Not "rules" but "guidelines". Or quite literally, "principles". "... stock soars" The thing is that GAAP vs Non-GAAP is pretty irrelevant unless they regularly change how they do it. If a company reports non-GAAP earnings every quarter with the same methodology, it's effectively the same as reporting GAAP. People on wall street aren't dumb. There is a reason the reaction was positive.…

Zerohedge seems to be a bit sensationalist:)

- 1 YEAR AGO, as GAAP: Microsoft reported a $2000 millions in losses

- TODAY, as GAAP: Microsoft reported $3000 millions in profits

YET the story is spun negatively in terms of GAAP, and people will follow that negativity despite having the data literally in their faces!

In this case, what wall street takes into account is Microsoft progress in the cloud, how many physical and virtual widgets they are selling and cost's control as well as currency fluctuations, taxes, etc...

Re: Microsoft reports $22.6B in Q4 revenue

#63

Post by GnarlyWhale »

ProfChronos wrote: post #19

It is weird to see Techcrunch faking the Wall Street Journal or Bloomberg with GAAP, "Street" and earnings per share expressions. Really not what I expect from TC... I can't help but think that good old days when TC used to explore new ideas and technologies are gone. Today almost all their writers just post update about a funding round, a developer conference or a new product feature. I wish I could get more in-dept…

Maybe they're trying to edge out the Journal for this kind of news. If I recall Bloomberg and the Journal both have some kind of pay wall up, which at least has kept me from using them.

Re: Microsoft reports $22.6B in Q4 revenue

#64

Post by lloyd-christmas »

lanevorockz wrote: post #57
lloyd-christmas wrote: post #54

Earlier quoted context omitted.

> Not according to GAAP rules... Not "rules" but "guidelines". Or quite literally, "principles". "... stock soars" The thing is that GAAP vs Non-GAAP is pretty irrelevant unless they regularly change how they do it. If a company reports non-GAAP earnings every quarter with the same methodology, it's effectively the same as reporting GAAP. People on wall street aren't dumb. There is a reason the reaction was positive.…

This belief that Wall Street is always correct is exactly what caused the previous economic crash. Speculators don't care about a correct investment decision is about riding the trends. If people are buying, it doesn't matter if you don't agree .. you have to buy as well it works as a hedge. btw, don't say " for the non-finance people " -> it's very arrogant and bankers are already hated as it is.

> This belief that Wall Street is always correct is exactly what caused the previous economic crash.

This is the easy over-simplification that makes for a convenient blame-game.

> Speculators don't care about a correct investment decision is about riding the trends

Speculators != Investors.

> If people are buying, it doesn't matter if you don't agree .. you have to buy as well it works as a hedge.

No. If other people are buying, you can sit there and do absolutely nothing.

> btw, don't say " for the non-finance people"

No. I'll go ahead and target my explanations to the exact people who may not understand the topic being discussed. If you feel like you're being looked down upon, that's your insecurity, not my problem.

Re: Microsoft reports $22.6B in Q4 revenue

#65

Post by howlingfantods »

lloyd-christmas wrote: post #54
julsimon wrote: post #6

Not according to GAAP rules... http://www.zerohedge.com/news/2016-07-19/microsoft-misses-ga...

> Not according to GAAP rules... Not "rules" but "guidelines". Or quite literally, "principles". "... stock soars" The thing is that GAAP vs Non-GAAP is pretty irrelevant unless they regularly change how they do it. If a company reports non-GAAP earnings every quarter with the same methodology, it's effectively the same as reporting GAAP. People on wall street aren't dumb. There is a reason the reaction was positive.…

it's only "effectively the same" when you're comparing between different years at the same company. it's absolutely not the same when you're comparing different companies.

Re: Microsoft reports $22.6B in Q4 revenue

#66

Post by lloyd-christmas »

howlingfantods wrote: post #65
lloyd-christmas wrote: post #54

Earlier quoted context omitted.

> Not according to GAAP rules... Not "rules" but "guidelines". Or quite literally, "principles". "... stock soars" The thing is that GAAP vs Non-GAAP is pretty irrelevant unless they regularly change how they do it. If a company reports non-GAAP earnings every quarter with the same methodology, it's effectively the same as reporting GAAP. People on wall street aren't dumb. There is a reason the reaction was positive.…

it's only "effectively the same" when you're comparing between different years at the same company. it's absolutely not the same when you're comparing different companies.

I thought that's what I implied. Sorry if that wasn't clear.

Re: Microsoft reports $22.6B in Q4 revenue

#67

Post by Dwolb »

chenster wrote: post #45
forgetsusername wrote: post #39

Earlier quoted context omitted.

> GAAP rulea may dictate they book the revenue over the life of the OS to better match liabilities in the form of updates. MSFT want to book all the revenue now as an "economic reality". I think you might be right; the revenue should be deferred over the life of Windows 10, but their non-GAAP measure books it up front. Hence the top line beat. Not a particularly heinous accounting maneuver.

So the news is ... a lie?

Not totally a lie. There are a finite number of accounting rules applied to unique businesses all over the country and globe. However, not all these rules allow a company to fully represent the financial state of the business. Therefore, companies try to reconcile these discrepancies through management guidance and non-GAAP accounting.

As an observer, you need to make a judgement call on whether you agree with the GAAP numbers, the guidance numbers, or somewhere in between.

Re: Microsoft reports $22.6B in Q4 revenue

#68

Post by lanevorockz »

lloyd-christmas wrote: post #64
lanevorockz wrote: post #57

Earlier quoted context omitted.

This belief that Wall Street is always correct is exactly what caused the previous economic crash. Speculators don't care about a correct investment decision is about riding the trends. If people are buying, it doesn't matter if you don't agree .. you have to buy as well it works as a hedge. btw, don't say " for the non-finance people " -> it's very arrogant and bankers are already hated as it is.

> This belief that Wall Street is always correct is exactly what caused the previous economic crash. This is the easy over-simplification that makes for a convenient blame-game. > Speculators don't care about a correct investment decision is about riding the trends Speculators != Investors. > If people are buying, it doesn't matter if you don't agree .. you have to buy as well it works as a hedge. No. If other people…

I forgot Microsoft actions are beyond criticism. Let's buy shares.

Re: Microsoft reports $22.6B in Q4 revenue

#69

Post by evanws »

lanevorockz wrote: post #68
lloyd-christmas wrote: post #64

Earlier quoted context omitted.

> This belief that Wall Street is always correct is exactly what caused the previous economic crash. This is the easy over-simplification that makes for a convenient blame-game. > Speculators don't care about a correct investment decision is about riding the trends Speculators != Investors. > If people are buying, it doesn't matter if you don't agree .. you have to buy as well it works as a hedge. No. If other people…

I forgot Microsoft actions are beyond criticism. Let's buy shares.

That's not even remotely what he's saying. Come on dude.

Re: Microsoft reports $22.6B in Q4 revenue

#70

Post by cwyers »

deviate_X wrote: post #62
lloyd-christmas wrote: post #54

Earlier quoted context omitted.

> Not according to GAAP rules... Not "rules" but "guidelines". Or quite literally, "principles". "... stock soars" The thing is that GAAP vs Non-GAAP is pretty irrelevant unless they regularly change how they do it. If a company reports non-GAAP earnings every quarter with the same methodology, it's effectively the same as reporting GAAP. People on wall street aren't dumb. There is a reason the reaction was positive.…

Zerohedge seems to be a bit sensationalist:) - 1 YEAR AGO, as GAAP: Microsoft reported a $2000 millions in losses - TODAY, as GAAP: Microsoft reported $3000 millions in profits YET the story is spun negatively in terms of GAAP, and people will follow that negativity despite having the data literally in their faces! In this case, what wall street takes into account is Microsoft progress in the cloud, how many physical…

I am shocked that an investing website that uses a quote from Fight Club atop all its pages is sensationalist. Absolutely, completely shocked.
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