💼 Microsoft's $2T moment

1 for Nadella, 0 for Bezos... Not Amazon, not Google, but Microsoft just became the second American company to ever hit a $2T market cap. It's also the third company to ever join the $2T "Platinum Pegasus Club." Microsoft doubled its market value in just two years, partly thanks to corona-conomy demand. WFH and school-from-home boosted Microsoft's cloud services, gaming consoles, and PCs.

• +65%: How much MSFT stock has soared since the beginning of March last year.
• +19%: How much Microsoft's sales grew last quarter compared to March 2020.
• $2T: MSFT is worth more than half as much as the entire German stock market.

To the Windows... Today, Microsoft will finally unveil a new version of Windows OS, which is losing market share to Apple's Mac OS & Google’s Chrome OS. In 2010, Windows ran on 98% of the world’s computers — today, it runs on 73%. Windows made Bill Gates rich, but it's no longer Microsoft's biggest profit puppy. How Microsoft makes its $$$, by category:

• Cloud = 36% of sales: Server products and cloud services are booming. Microsoft's Azure cloud revenue grew 50% last quarter.
• Productivity and Biz Apps = 33% of sales: That includes Office subscriptions. But the fastest growers were Dynamics cloud (+26%) and LinkedIn (+25%).
• Personal computing = 31% of sales: Xbox was the fastest grower last quarter (+34%), Surface grew 12%, and Windows/PCs grew just 10%.

"You're breaking up on the Zoom..." Tends to happen when you're on an RV rolling through a prairie. RV icon Winnebago Industries is the #2 motor home company by market share, after Thor Industries. Winnebago just dropped a record quarter, as you worked-from-Winnebago while crusing through America's heartland.

• Record quarterly sales: Winnebago pulled in nearly $1B last quarter, more than double what it made in the same quarter last year.
• Record backlogs: Backlog orders more than tripled from 2020, reflecting sustained strong demand.

Slack status: #vanlife... While the US economy reopens and domestic travel nears pre-pandemic levels, much of the world remains Covid-closed. Instead of European getaways, Americans are embracing the great outdoors at home. Winnebago's president calls it “consumer engagement in the outdoor lifestyle." We call it van life.

• Overnight stay at Yellowstone... Perfect for the RV. 237M Americans visited national parks in 2020, and 15 parks set new visitation records.
• RV sales are expected to have a record year, surpassing 2020 sales as demand continues. Some people are buying motorhomes only to cash in on the rental opp (#AirbnRV).

• Package: Total e-commerce sales during Amazon Prime Day crossed $11B+ in the US, up 6% from last year.
• Billions: Legendary investor Warren Buffett is resigning as trustee at the Bill & Melinda Gates Foundation, but will donate $4.1B to the foundation.
• Squashed: Fintech giant Ant Group is in talks to share its giant trove of consumer data with Chinese state-owned enterprises, according to WSJ.
• Green: Amazon and other tech giants are racing to buy up solar and wind plants to meet their emissions goals.
• Quizzy: BuzzFeed is reportedly nearing a deal to go public via SPAC merger as part of a digital-media rollup to compete with Big Tech.

• Weekly jobless claims
• Earnings expected from Nike, FedEx, and Darden Restaurants

Authors of this Snacks own shares of: Microsoft

ID: 1697571